Skip to content
← Regulation Vault
🇯🇵

Japan

Japanese employment is governed by the Labor Standards Act, the Labor Contract Act, and related statutes. The 'objectively reasonable grounds' test for dismissal is courts' default lens.

Last updated 2026-04-25·6 sections·4 recent changes

Probation

3–6 months

Dismissal test

Objective grounds

Min. leave taken

5 days/yr

OT cap (SMB)

Enforced

Employment contracts

Reviewed 2026-01-15

The written notice (rodo joken tsuchisho) is mandatory. A signed offer letter alone does not satisfy the requirement.

Written notice of working conditions required at hire. Specifies wages, hours, term, place of work, and termination conditions.

Probation

Reviewed 2026-01-15

Even during probation, courts will overturn dismissals without documented grounds. Document performance issues weekly during probation.

Typically 3–6 months. Dismissal during probation is easier than after confirmation but still requires reasonable grounds.

Watch out

'Reasonable grounds' is interpreted narrowly. Cultural fit, vague performance concerns, or single incidents rarely survive review.

Termination

Reviewed 2026-04-22

Japan is a high-bar termination jurisdiction. Most companies negotiate mutual separation packages (taishoku kankoku) rather than risk court reversal.

30 days notice or pay in lieu. Dismissal without 'objectively reasonable grounds' is treated as void by courts. No statutory severance, but redundancy pay is contractual.

Watch out

Even mutual separations require a paper trail showing the employee was not coerced. Recorded conversations and witness presence are routine.

Minimum wage

Reviewed 2026-03-25

Tokyo crossed ¥1,200/hour in October 2026. Effective dates differ by prefecture — usually October.

Set per prefecture. Tokyo, Kanagawa, and Osaka are typically the highest. National weighted average is reviewed annually.

Leave entitlements

Reviewed 2026-04-25

The 'at least 5 days taken' rule is enforced. Track per-employee leave usage and prompt anyone behind by Q3.

10 days paid annual leave after 6 months of service, rising to 20 days. Employers must ensure at least 5 days are actually taken. Maternity 14 weeks, paternity 4 weeks.

Watch out

Failing to ensure 5 days of leave taken per year is a labor standards violation per employee, not per company. Fines stack.

Recent regulatory changes

Reviewed 2026-04-25

Overtime cap enforcement tightened for SMBs (April 2026). Paternity leave uptake reporting now required for 1,000+ companies, extending to 300+ next year.

Recent changes

  1. 2026-04-25

    2025 paternity uptake data published

  2. 2026-04-22

    Overtime cap enforcement tightened for SMBs

  3. 2026-03-25

    Tokyo minimum wage above ¥1,200/hour

  4. 2026-03-14

    Equal pay disclosure extended to 100+ employees

Three things people get wrong about Japan

  1. 1.Probation dismissal is easy. Still needs objectively reasonable grounds.
  2. 2.Annual leave is the employee's problem. You must ensure 5 days are taken — fines stack per employee.
  3. 3.Overtime cap is a guideline. Enforcement on SMBs is now active.

Cross-country compare

Quick read across the six jurisdictions HR Asia tracks.

CountryProbationNoticeLeave
🇮🇩 Indonesia3 months12 days
🇸🇬 Singapore3–6 months2 weeks7 days
🇲🇾 Malaysia3–6 months4 weeks8 days
🇵🇭 Philippines6 months5 days
🇮🇳 India3–6 months1 month12–21 days
🇯🇵 Japan3–6 months10 days

Managing this automatically? Aire handles contract generation tied to your live compliance requirements — country by country.

Try Aire HR Chat

Other jurisdictions

This page is editorial, not legal advice. Always confirm with local counsel before acting on any specific case.