Foreign nationals must hold an appropriate work-authorised residence status to be employed in Japan.

• Common Work Visas: Engineer/Specialist in Humanities/International Services, Highly Skilled Professional, Intra-Company Transferee, and Business Manager.
• Sponsorship: A Japanese entity or EOR must sponsor the visa and issue a Certificate of Eligibility (CoE).
• Validity: Typically granted for 1, 3, or 5 years and renewable.
• ‍No labour market testing is required, but role duties must align strictly with visa category.

Employers must register with the National Tax Agency (NTA), Japan Pension Service, and Labour Standards authorities.

• Payroll Frequency: Monthly (most commonly paid on the 25th or month-end).
• Withholding: Employers must withhold national income tax, local inhabitant tax, and social insurance contributions.
• Reporting:
  
  • Income tax withheld monthly
  • Year-end tax adjustment (Nenmatsu Chosei) required
  • Annual statutory reporting to tax and labour authorities

Contracts may be fixed-term or indefinite and must be issued in writing.

• Probation: Commonly 3 months (not statutorily defined).
• Working Hours: Standard 40 hours per week, 8 hours per day.
• Overtime: Strictly regulated and paid at premium rates (typically 125%–150%).
• Termination: Requires objectively reasonable grounds and advance notice (30 days or pay in lieu).
• Severance: Not statutory but commonly expected in practice.

• Annual Leave: Starts at 10 days after 6 months, increasing with service up to 20 days.
• Public Holidays: National holidays observed.
• Sick Leave: No statutory paid sick leave; covered via company policy or health insurance.
• Maternity Leave: 14 weeks (6 pre-birth, 8 post-birth) with social insurance payments.
• Parental Leave: Available to both parents, paid via employment insurance.

• Double Tax Treaties: Extensive treaty network.
• Tax Residency: Residents taxed on worldwide income; non-residents on Japan-sourced income only.
• Tax Year: January 1 – December 31.
• System: Progressive national tax + flat local tax.