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Labor Management in Japan

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What should I legally pay attention to when I hire employees in Japan?

Japan has many legal hurdles to changing an employee's treatment to their disadvantage or dismissing them. So, in many cases, a simple financial settlement is not possible unlike other countries. In worsened cases, companies may face a multi-year trial or a labor union’s intervention. In such cases, they may be required to ask a lawyer to solve the problem.

Furthermore, some company were forced to pay several years’ unpaid overtime worth several tens of millions of yen to all employees at a time after one employee notified the labor standards inspection office of the violation of the Labor Standards Act.

“Even employers cannot make their employees do everything. So, you must always comply with the law and conduct labor management properly.


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