The moment you hire your first employee in Japan, a cascade of legal obligations activates. These are not optional administrative tasks — they are requirements under the Labor Standards Act (労働基準法), the Health Insurance Act (健康保険法), the Employees' Pension Insurance Act (厚生年金保険法), and the Employment Insurance Act (雇用保険法).
Most founders underestimate the speed at which these obligations arrive. Social insurance enrollment must happen within 5 days. Labor insurance notification must happen within 10 days. A written employment contract must be provided before the employee starts work.
Missing these obligations can result in penalties, retroactive premium assessments, and employee disputes. The compliance burden is manageable — but only if you know what is required.
No written employment conditions: Article 15 of the Labor Standards Act requires employers to clearly specify certain working conditions in writing. Many startups operate on verbal agreements, which is legally insufficient.
Delayed social insurance enrollment: Some founders think they can enroll employees "when things settle down." The law requires enrollment within 5 days of the hire date, with no grace period.
Misclassified workers: Treating employees as independent contractors (業務委託) to avoid social insurance obligations is a common but risky practice that can result in retroactive premium assessments.
No awareness of working hour rules: The Labor Standards Act establishes maximum working hours (40 per week, 8 per day) and requires overtime agreements (36協定) before any overtime work can be performed.
MmowW's Employment Rule Checker helps you understand your obligations as an employer before you make your first hire. Answer questions about your hiring plans, and the tool identifies every compliance requirement that applies.
Use our free tool to check your compliance instantly.
Try it free →Tech startup hiring two engineers: The checker identifies social insurance enrollment (within 5 days), labor insurance establishment report (within 10 days), employment contract requirements (before start), and income tax withholding registration obligations. The founders, focused on product development, had not considered any of these.
Restaurant hiring five part-time staff: Part-time employees working above certain weekly hour thresholds may also require social insurance enrollment. The checker clarifies the thresholds and helps the owner determine which employees must be enrolled.
Consulting firm hiring its first full-time employee after operating solo for a year: The founder has been paying themselves a director's salary but has never dealt with employment obligations for others. The checker provides a complete first-employer orientation.
Q: Do employment obligations apply if I only hire part-time workers?
A: Yes, though the specific obligations depend on working hours. Part-time employees working more than three-quarters of regular employees' hours are typically subject to social insurance enrollment. The Labor Standards Act applies to all employees regardless of hours.
Q: Am I required to have employment regulations (就業規則)?
A: Under Article 89 of the Labor Standards Act, employers with 10 or more employees must create employment regulations and submit them to the Labor Standards Inspection Office. Employers with fewer than 10 employees are not legally required to, but creating them is recommended.
Q: What if my only employee is a family member?
A: Family members who are employees are generally subject to the same employment laws. However, directors of the company (including family member directors) are not considered employees under the Labor Standards Act — they are officers. The distinction matters for social insurance and labor law purposes.
Know every obligation before your first hire:
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