Working in Japan
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| The Japanese Labor Standards Law states that no employer shall discriminate
against or favor any workers by reason of nationality. The same is also
true of other labor related laws. However, inadequate knowledge of Japanese
labor laws often causes troubles between employers and workers. It is essential
for foreign enterprises and workers to fully understand Japanese labor
related laws in order to resolve and avoid such problems. |
| 1.Application of Japanese Labor Laws to Foreign Workers |
| As a general rule, Japanese labor laws apply to all workers in Japan regardless
of nationality. The Japanese Labor Standards Law, the Industrial
Safety and Health Law, the Minimum Wages Law and other labor related laws
apply to foreign workers, including so-called overstaying migrant workers.
Article 3 of the Labor Standards Law stipulates that the employer shall
not engage in discrimination with regard to wages, working hours and other
working conditions by reason of nationality, creed or social status of
any worker. Foreign workers are also entitled to fundamental labor rights
such as the right to organize a labor union and act collectively to maintain
and improve their working conditions. |
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| 2.Labor Contract |
When a foreign worker is employed, the employer shall draw up a labor contract
to determine under what working conditions he or she will work. To prevent
future issues concerning labor contracts, the Labor Standards Law stipulates
that working conditions must be stated clearly and the following matters
shall be written out and handed to the employees.
1.Period of labor contract
2. Place of work and job duties
3. Existence of overtime work
4. Time to start and finish work, rest periods, holidays, annual leave
and shift time when applicable
5. Amount of wages, the methods of calculation and payment of wages, the date of closing accounts, pay days and matters concerning pay increase
6. Matters concerning retirement
Article 15 of the Labor Standards Law stipulates that an employee may immediately cancel the labor
contract, if the working condition as clearly stated differs from the actual
conditions. In most cases, foreign workers have difficulties understanding
their labor contracts written in Japanese. Therefore, it is advisable for
an employer to draw up English or other language versions of the labor
contracts to avoid potential disputes. We can help you draw up and translate
both Japanese and English version of labor contracts.
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| 3.Work Rules |
| In addition to the individual labor contracts, the company is expected
to prepare its work rules concerning working conditions and public service
regulations. Article 89 of the Labor Standards Law stipulates that the
companies which continually employs 10 or more workers must provide such
work rules and submit them together with the worker's opinions to the Labor
Standards Inspection Office. The work rules shall not violate guidelines
as set by the Labor Standards Law and Collective Agreement made between
an employer and a labor union. When any part of the individual labor contract
is inferior to the work rules standard, that part is invalid and thus governed
by the work rules. It is important for the employer to prepare the English version
of work rules for foreign workers who may find it difficult to understand
Japanese. We can help you draw up and translate both Japanese and English
version of work rules and submit them to the Labor Standards Inspection
Office that controls the area of company's location. |
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| 4.Workmen's
Accident Compensation Insurance |
| The worker may be injured or even die on the job or while commuting to
the workplace. The workmen's accident compensation insurance provides the
injured workers with compensation. Any company which employs a worker must
join the insurance and all the premiums shall be borne by the employer.
The workmen's accident compensation insurance applies to any worker regardless
of nationality. The application for compensation should be filed with the
Labor Standards Inspection Office. |
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| 5.Employment Insurance |
| The employment insurance shall provide basic benefits to the worker who
has become unemployed after the Public Employment Security Office agrees
he or she has lost their job. The basic benefits are provided to general
full-time workers who have been insured for 6 months or longer during the
year prior to the date when he or she became unemployed. The workers should
apply for the benefits at the Public Employment Security Office. Any company
which employs a worker must join this insurance and premiums shall be shared
by the employer and worker. Employment insurance applies to foreign workers
except overseas public servants or those who are already covered by foreign
employment insurance. |
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| 6.Health Insurance and Welfare Pension Insurance (Social Insurance) |
The purpose of health insurance and welfare pension insurance system is
to protect the health and livelihood of employees or their families with
medical and pension benefits for sickness, injury, disability, old age
and other problems. If the insured employee is treated for sickness or
injury, seventy percent of the expense will be covered by the health insurance.
The health insurance and welfare pension insurance apply to all companies
and individual offices which regularly employ 5 or more workers. All employees,
including foreign nationals, who work for an applicable company must participate
both of these insurance. The monthly premiums are determined in accordance
with employees' wages and shared evenly between the employer and worker.
The employer needs to apply for enrollment of these insurances at the local
Social Insurance Office.
Any foreign employee who had been a member of the welfare pension insurance for 6 months or longer is eligible to claim a withdrawal lump sum pension refund if he or she had not received any pension benefit. The request must be
submitted to the Social Insurance Office within two years after leaving
Japan.
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