Establishment of Company

Documentations when your company hires staffs in Japan

When your company hires an employees, there are many documents required to submit to labor inspection offices or other authorities.

For this kind of matters, we recommend you to check with your Labor and Social Security Attorney (社労士). But for your understanding, we explain what kind of documents your companies are required to prepare.

Labor Contract or Notification of Labor Conditions

When you hire employees, first of all, you need to explain working conditions clearly to them by making a labor contract or handing notification of working conditions.

You can find template of notification of working conditions in the website of MLHW.

You can choose one template which are suitable for your staffs.

https://jsite.mhlw.go.jp/tokyo-roudoukyoku/hourei_seido_tetsuzuki/hourei_youshikishu/youshikishu_zenkoku.html

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Labor Standards Enforcement Report(労働基準適用事業報告書)

And as an administration process, your company needs to submit Labor Standards Enforcement Report (労働基準適用事業報告書 Rodo Kijun Tekiyou Jgyou Houkoku-syo) to the chief of the Labor Standards Inspection Office without delay from the start of employment.

Notification of Agreement on Overtime and Work on Days off (時間外労働・休日労働に関する協定届)

If your company want your employees to work in excess of statutory working hours (more than 8 hours per day or 40 hours per week) or on statutory holidays (1 day per week), you need to agree the condition with labor Union that has been organized by a majority of the workers (or person representing a majority of workers if there is no such labor union).This is called 36 Agreement (36協定).

Then, your company must submit Notification of Agreement on Overtime and Work on Days off (時間外労働・休日労働に関する協定届) to the Chief of the relevant labor standard inspection office in advance.

https://jsite.mhlw.go.jp/tokyo-roudoukyoku/hourei_seido_tetsuzuki/roudoukijun_keiyaku/36_kyoutei.html

Rules of the Employment (就業規則)

If your company hires 10 or more employees, you need to make the Rules of the Employment (就業規則)and submit the copy to the local Labor Standard Inspection Office without delay.

You can find template of 就業規則 in the following MLHW’s page.

https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/koyou_roudou/roudoukijun/zigyonushi/model/index.html

 

Procedures Related to Social Insurance

Notification of new coverage (雇用年金保険新規適用届)

Once you set up a company, you will be obliged to enroll in social insurance. So your company is required to submit a notification of new coverage (雇用年金保険新規適用届)to the relevant pension office within 5 days after the registration of establishment. However, if there is no executive remuneration or if it is extremely low, your company may not be able to enroll in the system.

For details, please refer to the following page of Japan Pension Service’s website:

https://www.nenkin.go.jp/service/pamphlet/kaigai/konen-kenpo.files/English.pdf

Enrollment in Social Insurance System(社会保険への加入)

If your company hires an employee (including an officer), it needs to enroll the person in social insurance. For this purpose, your company is required to submit a Notification of Acquisition of Eligibility as Insured Person(健康保険・厚生年金被保険者資格取得届) to the pension office that has jurisdiction over the location of your company within 5 days from the date of hiring the employee.

At the same time, if the employee has a dependent such as spouse, children, parents, your company needs to submit a Notification of Dependents (健康保険被扶養者(異動)届. And if such dependent is the spouse of the employee, the Notification of Acquisition of Type 3 Insured Status(国民民年金第3号被保険者資格取得届) is also required.  *Type 3 Insured Person is a person aged 20 to 60 who is spouse and and dependent of Type 2 Insured Person such as an employee of companies. Type 3 Insured Person doe not need to pay the premium by himself/herself during the period of being Type 3 Insured Person, and it will be reflected in the future pension amount as the premium paid period.

For details, please refer to the following page of Japan Pension Service’s website:

https://www.nenkin.go.jp/international/japanese-system/employeespension/employee.html#cms01

Enrollment in Workers’ Accident Compensation Insurance & Employment Insurance(労災保険及び雇用保険への加入)

As with social insurance, when you hire an employee, you are, in principle, obliged to enroll the employee in Workers’ Accident Compensation Insurance and Employment Insurance within 10 days from the day after the start of employment.

Workers’ accident compensation insurance is designed to protect workers and their bereaved families in the event that they are injured or become ill due to work-related reasons or commuting. All employees including part-time workers are required to enroll in Workers’ accident compensation.

Employment insurance is designed to protect the livelihood of workers and promote re-employment in the event that they become unemployed or have difficulty continuing to work. Employees who work at least 20 hours per week and are expected to be employed for at least 31 days must join the program.

Workers’ Accident Compensation Insurance and Employment Insurance are called Labor Insurance.

The procedure for joining Labor Insurance can be done at the Labor Standards Inspection Office(労働基準監督署) and the Public Employment Security Office(ハローワーク), which have jurisdiction over the location of the head office.