Employment contract in Japan: Template, Key Clauses and Local Law (2026)

What an employment contract in Japan is An employment contract in Japan is the agreement under which a worker provides labor for a wage, governed mainly by the Labor Standards Act, the Labor Contract Act and related rules. Japanese employment law is protective of workers, and much of what matters is set by statute whether or not the contract repeats it. The single most important compliance point is that the employer must clearly notify the employee, in writing, of the key working conditions at the time of hiring. This page is general information, not legal advice. Japanese labor law is detailed and enforced through both statute and case law, so confirm the current rules and, for anything unusual, ask a Japanese labor lawyer (bengoshi) or a licensed labor and social security consultant (sharoshi). ## What local law requires Written notice of conditions. Under the Labor Standards Act the employer must give each employee a written statement of defined working conditions. These include the contract term; whether and how it renews; the place of work and the duties; start and finish times, overtime, breaks, days off and leave; how wages are decided, calculated and paid, and the payment date; and the rules on resignation and dismissal. A full signed contract is common, but at a minimum the employer must hand over a notice of working conditions (roudou jouken tsuuchisho). It is safest to prepare the document in Japanese, since that is the language of the authorities and the courts. Rules of employment. An employer with 10 or more employees at a workplace must draw up written rules of employment (shuugyou kisoku), covering working hours, wages, and resignation and dismissal, and file them with the local Labor Standards Inspection Office after hearing the views of worker representatives. These rules work alongside the individual contract. Probation. Probation (shiyou kikan) is not required by law but is standard, and three months is typical, with up to six months also seen. Even during probation, a dismissal needs objectively reasonable grounds and must be socially acceptable. There is a narrow exception to the usual dismissal-notice rule for a worker within the first 14 days. Notice of dismissal. To dismiss an employee the employer must generally give at least 30 days' advance notice, or pay in lieu for the days not given. Separately from notice, a dismissal itself must have objectively reasonable grounds and be socially acceptable, or it can be struck down as an abuse of the right to dismiss. This substantive protection is what makes dismissals in Japan hard, not the notice period. Pay, hours and insurances. Statutory working time is 8 hours a day and 40 hours a week, with overtime premiums and a written overtime agreement (the 36 Agreement) needed before overtime is worked. Employers enroll eligible staff in health insurance, pension, employment insurance and workers' accident insurance. ## A simple structure you can adapt ```

NOTICE OF WORKING CONDITIONS AND EMPLOYMENT CONTRACT Employer: [name, address] Employee: [name, address] 1. CONTRACT TERM [Indefinite / fixed term; if fixed, the term and renewal rule.] 2. PLACE OF WORK AND DUTIES [Location and job description.] 3. WORKING HOURS [Start/finish, breaks, days off, overtime and the 36 Agreement.] 4. WAGES [Base wage, how calculated, allowances, payment date and method, raise and bonus rules if any.] 5. LEAVE [Annual paid leave and other leave per statute.] 6. PROBATION [Length, typically up to three to six months, and the standard applied.] 7. RESIGNATION AND DISMISSAL [Resignation notice; dismissal follows the Labor Standards Act and the rules of employment; 30 days' notice or pay in lieu.] 8. CONFIDENTIALITY The employee keeps the employer's trade secrets and confidential information secret, consistent with the Unfair Competition Prevention Act. Date: [date] Employer ______________ Employee ______________

- An at-will dismissal clause copied from a US template. Japanese dismissals need objectively reasonable, socially acceptable grounds.
- Assuming overtime without a filed 36 Agreement.
- Serial fixed-term renewals with no awareness of the five-year conversion right.
- An English-only document for a role based in Japan. Prepare a Japanese version. ## A short checklist before you sign - Prepare a written notice of working conditions covering the statutory items, and give it to the employee in Japanese.
- Check whether you have 10 or more employees at the workplace, which triggers the duty to draw up and file rules of employment.
- Set a normal probation length, usually three to six months, and remember that dismissal still needs objectively reasonable, socially acceptable grounds.
- Match the dismissal clause to statute: 30 days' notice or pay in lieu, and no at-will wording.
- File a 36 Agreement before any overtime is worked, and keep hours within the statutory limit.
- For fixed-term contracts, state the term and renewal rule and watch the five-year conversion right.
- Enroll eligible staff in health insurance, pension, employment insurance and workers' accident insurance. ## Where this sits with your other contracts An employment contract in Japan comes with a notice of working conditions, the rules of employment, the 36 Agreement, and amendments as pay or duties change. The lasting work is keeping all of these consistent with each other and with the law, and knowing which version is current. That is the same challenge a company faces across every contract, in each country where it hires. Drafting from a sound structure, catching a clause that does not fit local law, editing a term in plain language, and holding every version with its date can live in one AI workspace tuned to how your company contracts. [Adira](https://adiralaw.com) is built around that single workspace idea. Its depth is greatest in Indian corporate law today, with Japan-specific coverage on its roadmap rather than shipped, so a Japanese hire still needs the law above and local advice. The idea to keep is that contracts are easier to trust when drafting, review, editing and version history live in one place.