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Basic Knowledge of Recruiting and HR Laws for Successful Business in Japan

April 12, 2025

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Mayumi Fujii presented on what you need to do legally in terms of HR and labor when starting a business in Japan, as well as the common mistakes foreign companies make when doing business in Japan in terms of HR and labor. This is a must see.

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Summary

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πŸ‘©πŸ’Ό Presenter Intro:

Mayumi Fuji, Labor & Social Security Attorney and founder of International HR Partners, Tokyo (est. 2011), specializes in supporting foreign companies in Japan.

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🧭 Purpose & Goal:

Provide key HR and labor insights to help foreign businesses avoid legal pitfalls and operate successfully in Japan.

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πŸ§‘β€βš–οΈ Key Specialists in Japan:

Bengoshi (Lawyers): Handle legal disputes

Shihoshoshi (Judicial Scriveners): Manage company registration

Gyoseishoshi (Administrative Scriveners): Handle immigration and visas

Zeirishi (Tax Accountants): Tax matters

Shakai Hoken Roumushi (Labor/Social Security Attorney): HR compliance

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πŸ“’ Hiring Methods in Japan:

Job ads on HelloWork (free government job board) or private job sites

Recruitment Agencies (specialized industry recruiters)

Staffing Companies (temporary/flexible hires)

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🚧 Challenges in Recruitment:

πŸ’° High recruitment agency fees (up to 40% of annual salary)

⏳ Long hiring timeline (3–6 months)

πŸ“‰ Limited LinkedIn use (~25%) among Japanese professionals

🏒 Strong company loyalty, slow job mobility

⚠️ Common Legal Pitfalls:

πŸ•’ Annual salary β‰  overtime exemption: Must clearly define included OT hours and allowances in contracts

πŸ›‘οΈ Mandatory social/labor insurance: Health, pension, employment, and accident insurance for all full-time staff

πŸ“„ Overtime limits: Max 45 hours/month & 360/year; must file a "36 Agreement" with labor office

🧩 Key Recommendations:

βœ… Consult local experts early

πŸ“˜ Understand Japanese labor law thoroughly

πŸ§‘β€πŸ’Ό Plan hiring strategies aligned with local norms

🧠 Adapt to Japan’s unique regulatory and business culture

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