JPN-Journal.com News/Laws for Foreigners Working in Japan.

Labor Standards Law

Article 27 Paragraph 2 of the Constitution of Japan provides that "standards of wages, working hours, rest and other working conditions shall be determined by law." The Labor Standards Law was enacted on April 7, 1947 in response to this provision.



The Labor Standards Law applies to all business enterprises employing more than one employee, regardless of the industry the business operates in or the size of the business. Exception clauses, listed in the separate chart of the Labor Standards Law, only limit the application of certain provisions to certain industries. No business enterprise, except for businesses with domestic employees only, can fully escape the application of the Labor Standards Law.

The Labor Standards Law establishes wage, working hours, overtime pay, resignation, dismissal, and other labor standards affecting full-time workers in the private sector and in National and Municipal government offices. Whether you're a Japanese national or not, the law grants you certain rights.


Social Insurance Laws

Social insurance systems are government-run insurances designed to ensure Japanese citizens and legal residents secure and stable living by providing financial assistance to cover necessary medical expenses and to compensate lost wages due to sickness, injury, childbirth, death, old age, and disability. Under the universal coverage principle, all citizens and legal residents of Japan are required to enroll in one of the appropriate health insurance and pension systems.

As a practical matter, health insurance system is comprised of two separate types of insurances:

Employees' Health Insurance Law

Employees' Health Insurance is a workplace-based insurance system which provides financial assistance to salaried workers of companies and to their dependent family members in the event of sickness, injury, and death arising outside the scope of work, and childbirth.

National Health Insurance Law

National Health Insurance provides similar health insurance coverage to self-employed workers and their dependents. The law is intended to insure all those not eligible for the Employees' Health Insurance financial assistance in the event of sickness, injury, and death arising outside the scope of work, and childbirth.



Similarly, pension system is comprised of two separate types of systems:

Employees' Pension Insurance Law

Employees' Pension Insurance provides financial assistance to salaried workers of companies in the event of old age and disability arising outside the scope of work, and also to survivor(s) of the covered employee.

National Pension Law

National Pension is a public pension system designed to provide old-age pension, disability pension, and survivors' pension, collectively referred to as "Basic Pension", to all Japanese citizens and legal residents satisfying the required coverage period. Basic Pension serves as the fundamental basis of Japan's pension system where other publicly managed pensions, such as the Employees' Pension Insurance system, are built on top of.


Labor Insurance Laws

Labor insurance systems are government-run insurances designed to ensure Japanese citizens and legal residents secure and stable living during the period of unemployment and to compensate lost wages due to sickness, injury, death, and disability arising out of and in the course of employment. Employees satisfying certain criteria are required to enroll in the following insurance systems:

Workers' Accident Compensation Insurance Law

Workers' Accident Compensation Insurance is a workplace-based compulsory coverage system that provides exclusive remedy for employees against employers for personal injuries, diseases, or deaths arising out of and in the course of employment and commuting to and from work.

Employment Insurance Law

Employment Insurance is a workplace-based compulsory coverage system that provides unemployment compensation to employees who become unemployed through no fault of their own.


Minimum Wage Law

Minimum wage law regulates the lowest hourly, daily or monthly wage that employers may legally pay to employees or workers. In Japan minimum wage depends on the industry and the region. The lowest and higest minimum wage for a region are ¥618 (Akita) and ¥739 (Tokyo) per hour, respectively.


Industrial Safety and Health Law

Industrial Safety and Health Law provides measures to secure the safety and health of workers in workplaces, to facilitate the establishment of comfortable working environment by promoting comprehensive and systematic countermeasures concerning the prevention of industrial accidents, such as taking measures for the establishment of standards for hazard prevention, the clarification of responsibility and the promotion of voluntary activities to prevent industrial accidents.


Security of Wage Payment Law

Security of Wage Payment Law provides measures to secure wage payments for employees and workers in the event the financials of their employer become unstable due to fluctuation in the economy, changes in industrial structure, and for other business conditions, and when employees separate from their employer.


Law for Securing the Proper Operation of Worker Dispatching Undertakings and Improved Working Conditions for Dispatched Workers

Worker Dispatching Law provides measures for securing the proper operation of worker dispatching business and improving working conditions for dispatched workers.


Law Concerning the Improvement of Employment Management, Etc. of Part-Time Workers

Also dubbed Part-Time Work Law, this law provides measures to promote the effective utilization of part-time workers' abilities and to improve their welfare by securing appropriate working conditions, implementing education and training, improving their welfare, and taking steps to improve other types of employment management and human resources development and improvement.


Act on Welfare of Workers Who Take Care of Children or Other Family Members Including Child Care and Family Care Leave

"Act on Welfare of Workers Providing Care for Children and Other Family Members, including Child Care and Family Care Leave" was enacted on May 15, 1991 in recognition of the gravity of Japan's falling birth rate and aging society.

A legal infrastructure where employees can provide care for their children and aging family members while continuing employment was deemed necessary to encourage young couples to give more birth and to support aging family members.

The law establishes standards on leave of absense for child and family care and applies to employees both male and female.


Act on Securing, Etc. of Equal Opportunity and Treatment between Men and Women in Employment

Also dubbed "Equal Employment Law" was enacted on July 1, 1972 to promote equal opportunity and treatment between men and women in employment, and to promote measures, among others, to ensure the health of women workers with regard to employment during pregnancy and after childbirth.


Act on Promoting the Resolution of Individual Labor-Related Disputes

Act on Promoting the Resolution of Individual Labor-Related Disputes was enacted in 2001 in response to the increasing number of labor disputes between employees and employers and the social need for quicker and inexpensive dispute resolution system.

The law promotes the prompt and appropriate resolution of disputes between an individual employee and his/her employer on working conditions and other labor relationship matters through mediation and other alternative dispute resolution methods.

Disputes between an individual job applicant and potential employer with respect to recruitment and employment may also be disputed under this law.





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Certified Social Insurance and Labor Consultants

Yamamoto Immigration & Labor Consulting Office is run by Mr. Nobuyuki Yamamoto, a dual professional. He is a registered Gyoseishoshi Lawyer and a registered Certified Social Insurance and Labor Consultant. He received his Master's degree from International Relations University of San Diego. After working for a U.S. financial services provider, Mr. Yamamoto established his practice.

MIRAI Consulting Certified Social Insurance Labor Consultant Company (MCS) is a professional group supporting the true growth and success of clients. As a Certified Social Insurance Labor Consultant Company, their mission is to "offer necessary and sufficient service tailored to each client". The professionals at MCS provide services to clients from startup to pre-IPO/ after-IPO stage.

Kurata International Labor Management Consultant is run by Mr. Tetsuro Kurata, a registered Certified Social Insurance and Labor Consultant. Born in Hyogo prefecture and graduated from Yokohama City University. Mr. Kurata has global business experience in US based large scale manufacturing company. Today, Mr. Kurata dedicates to serving foreign affiliated companies.

Masae Nishio Certified Social Insurance and Labor Consultant Office is run by Ms. Masae Nishio, a registered Certified Social Insurance and Labor Consultant. Born in Fukuoka prefecture, she holds a Bachelor's degree in English literature from Seinan Gakuin University. After 30 years of experience in the service industry where she mastered the essence of communication between people of all cultures, she stepped up to challenge for the legal profession. And she will stand up for her clients at anytime and at all cost.

Wakamatsu Labor Consulting Office is run by Ms. Eri Wakamatsu, a dual professional. She is a registered Gyoseishoshi Lawyer and a registered Certified Social Insurance and Labor Consultant. Born in Nagasaki prefecture, her career includes Sony EMCS Corp., STMicroelectronics, General Electric Company, and other foreign based companies where she was responsible for the hiring of experienced personnel and other human resource operations.

Oshima Jimusho Social Insurance Specialist / Administrator is run by Mr. Oshima Kazuhiko, a dual professional. He is a registered Gyoseishoshi Lawyer and a registered Certified Social Insurance and Labor Consultant. Born in Okayama prefecture, he holds a Bachelor's degree in economics from Kwansai Gakuin University. His firm, established in 1986, is now in its 21st year of operation. Mr. Oshima is an active participant in Okayama prefecture's professional club and has wide networks.

Sugimura Certified Social Insurance and Labor Consultant Office is run by Mr. Takuya Sugimura, a registered Certified Social Insurance and Labor Contultant. Born in Ooita prefecture and holds a Bachelor's degree in Economics and Politics from Meiji University. Mr. Sugimura has years of experience with the employment and social insurance legal services division at Grant Thornton, world's fifth largest accounting firm. His practice areas include payroll calculation, compliance with social insurance and various employment related regulations, consultation on employer-employee matters, drafting employment handbooks, and designing compensation structures.