Japan is an island country in east Asia that is located within the Pacific Ocean. The country is part of the Ring of Fire and spans an archipelago of 6,852 islands, the 5 main islands being Honshu (the "mainland"), Hokkaido, Shikoku, Kyushu, and Okinawa.

Japan has the world’s 3rd-largest economy, and is built on powerful technology. The population is very welcoming, making Japan one of the most desirable places to do business.

RemoFirst is able to offer multiple hiring options in Japan, which allow people the flexibility to choose.

Employment types:

• Full-time employment roles
• Part-time employment roles
• Hourly workers
• Expat workers

Contract types:

• Indefinite term contract
• Fixed-term contract (The minimum duration of a fixed-term contract should be 3 months, and a maximum of 3 years.)

Working conditions in Japan:

Beginning April 2025, Japan’s average minimum hourly wage has been raised to 1,121 JPY.

The standard working day consists of 8 hours; 40 hours per week.

Overtime is regulated by contracts and collective agreements. The employees have been prescribed a legal limit of up to 45 hours/month and 360 hours/year.

The employees are entitled to premium rates for overtime, which are as follows-

• Overtime (exceeding 8 hrs/day) = 125% of base wage.
• Late-night work (10 PM – 5 AM) = 125% + 25% = 150%
• Work on a statutory holiday (legal rest day)= 135%
• Overtime on holiday after 8 hours= 135% + 25% = 160%

Exception: Managers (kanojikan-shoku) may be exempt from certain overtime pay, though this must be strictly defined in the contract.

All contract types are equally protected under working hours and overtime rules.

Employee lifecycle:

Full-Time (Indefinite/Regular Employment)

• Probation period: 3–6 months.
• Notice period during probation: Often 14 days, but legally still expected to give 30 days unless contract specifies shorter.
• Termination during probation:
• Employer can terminate more easily, but must still have a legally justifiable reason; arbitrary dismissal can be challenged in court.
• Severance is usually not required unless stipulated in the contract.
• After probation: Full labour protections apply, including standard 30-day notice.

Fixed-Term Contracts

• Probation period: Usually 1–3 months, depending on contract length.
• Notice during probation: Contract can specify shorter notice (e.g., 7–14 days).
• Termination:
• Can terminate during probation if performance is unsatisfactory, subject to contract terms.
• At contract end, no notice is required unless early termination is intended.
• After probation: Standard fixed-term rules apply; contract simply expires at the end date.

Part-Time / Hourly Employees

• Probation period: Often 1–3 months, rarely longer.
• Notice during probation: Shorter periods are common (7–14 days), but the legal minimum still applies unless mutually agreed.
• Termination: Easier than full-time; employer generally not required to provide severance.
• After probation: Standard part-time rules apply (typically 30-day notice).

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Paid Leave

Employees are entitled to paid leave based on how long they’ve worked at their company. In order for an employee to be eligible for paid time off, they should have worked ≥6 months and attended ≥80% of scheduled work days. The annual leaves increase at the following rate-

• 0-6 months = 10 days of paid leave
• 6-18 months = 11 days of paid leave
• 1.5-2.5 years = 12 days of paid leave
• 2.5-3.5 years = 14 days of paid leave
• 3.5-4.5 years = 16 days of paid leave
• 4.5-5.5 years = 18 days of paid leave
• 5.5-6.5 years = 20 days of paid leave

Employees can also receive leave for bereavement, hospitalisation, marriage, menstruation, or civic duty.

• Bereavement: 3–5 days
• Hospitalization: 5–10 days typical
• Marriage: 1–5 days
• Menstruation: 1 day/month
• Civic Duty: As required by duty

Parental Leave

Pregnant employees are entitled to 14 weeks of paid maternity leave beginning 6 weeks before the due date and 8 weeks after the birth. This leave is paid at a rate equivalent to 2/3 of their regular salary and funded by the labour insurance office.

The father is also entitled to paid paternity leave for up to one year after the birth, and this leave is referred to as “childcare leave” in Japan. The father does not receive a salary while on this leave unless stated in the employment contract, but they are entitled to a partial allowance from social security.

Sick Leave

Employees are not explicitly entitled to sick leave in Japan, but can use their paid vacation time as sick leave. Many companies provide 5–10 days of paid sick leave or allow use of annual leave.

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Process

In Japan, employer-initiated terminations are tightly regulated and difficult to execute due to strong employee protections under the Labour Standards Act and judicial precedent. Dismissal must be objectively reasonable and socially acceptable, or it may be ruled invalid by courts.

• In Japan, dismissal of an employee is prohibited during pregnancy, maternity leave, and for 30 days following the end of maternity leave. In addition, employers may not dismiss or subject employees to disadvantageous treatment on the grounds that they have applied for, are taking, or have taken childcare leave.
• Termination on the grounds of medical absence or illness is highly restricted in Japan. For work-related injuries or illnesses, dismissal is expressly prohibited during the medical leave and for 30 days thereafter (Labour Standards Act).
• Employees are protected from dismissal for participating in union activities or reporting legal violations.
• Fixed-term and permanent employees are equally covered under these legal restrictions.

Notice Period

Minimum notice: 30 days before dismissal.

Employer option: If 30 days’ notice is not given, the employer must pay 30 days’ average wages in lieu of notice (or the shortfall if partial notice is given).

Employee resignation: Employees are expected to give at least 2 weeks’ notice under the Civil Code (Article 627), but in practice, employers expect 30 days.

Severance Pay

There are no requirements for employers to offer severance packages, but employees can dispute to receive a severance package equal to one month of pay for each year at the company.

Labour Standards Act (Article 23) requires all outstanding wages, allowances, and accrued paid leave encashment to be settled within 7 days of termination if the employee requests payment.

Components:

• Unpaid wages and overtime.
• Allowances (commuting, housing, bonuses if already earned).
• Payment in lieu of unused annual paid leave (mandatory).
• Payment in lieu of notice (if less than 30 days’ notice given).

Bonuses: It is customary (but not legally required) in Japan to pay seasonal bonuses — typically a summer bonus (June–July) and a larger year-end/winter bonus (December). Bonus amounts vary by company and year and are not fixed by law; if promised in contract or work rules, they are enforceable.

Digital nomad visa:

In 2024, Japan introduced a digital nomad visa.

This short-term digital nomad (designated activities) visa effective March 2024 allowing eligible remote workers to stay for up to six months under specified conditions.