Types of Employment Contracts in Japan

You might not know this but, there are big differences in working conditions between employment contracts in Japan. Some of them guarantee employee rights and benefits while others don't even have an employee-employer link.

Having a job in Japan is already complicated by itself, but trying to understand the bureaucracy behind it is even more difficult.

Whether you have a part-time job or you're on a Working Holiday visa and looking for work, to be safe and sure of all of your rights and duties, we'll explain the main contract types in Japan and their benefits and disadvantages.

First, let's name the main employment contracts in Japan and give a brief definition of each.

Types of Employment Contracts

1. Part-time Employment (Arubaito): Part-time contracts involve fewer working hours than regular full-time employees. Part-time workers may not receive the same benefits as full-time employees, but they are entitled to certain labor rights and protections.
2. Independent Employee Contract (Gyōmu Itaku): This is a type of contract work or outsourcing arrangement where a company or individual outsources specific tasks or projects to another individual or business entity. This type of contract doesn't fall under the Japanese Labow Laws.
3. Regular Employment (Seishain): This is a full-time, permanent employment status with benefits and job security. Regular employees are entitled to various benefits, including bonuses and retirement allowances.
4. Fixed-term Employment (Keiyaku Shain): This type of contract has a set duration, and the employee is hired for a specific period. Fixed-term employees may still receive benefits, but they might not be as comprehensive as those for regular employees.
5. Dispatched Workers (Haken Shain): Japanese companies may hire workers through staffing agencies in Japan. These dispatched workers are technically employed by the staffing agency but work at the client company. The client company pays the staffing agency, which, in turn, pays the worker.
6. Temporary Employment (Hiseiki): Temporary employment is similar to fixed-term employment, but it often involves shorter durations and may be project-based. Temporary workers may not receive the same benefits as regular employees.

Working Holiday Jobs

A lot of the Working Holiday visa holders come to work in Japan while being able to travel around the country, enjoying different cities. These jobs often offer temporary contract types, usually related to the demanding tourism industry.

Part-time Jobs

If you have a part-time job, you might have an employee contract specifically for Arubaito.

What kind of contract do I have? - Employment Contracts in Japan

If you already have a job and are not sure which contract you're under, ask yourself these questions:

1. Can I accept/deny jobs my employer offers?
2. Does the company supervise closely what I work on?
3. Do I have to buy my own equipment or does the company give it to me?
4. Are Income Taxes withheld from my remuneration?

These simple questions can tell if you have or don't have an Employee relationship and fall under the Japanese Labor Laws. Here you can find more examples of what could or not be an employee contract.

Conclusion

Contracts can be tricky, especially when you're not familiar with the country's regulations. But we hope this article was able to help you understand better how employment contracts in Japan work.