Five Essential Items in Employment Contracts with Foreign Employees in Japan

Obtaining a work visa is an integral part of the hiring process. Among the documents that immigration authorities place the greatest importance on is documentation that sets out the working conditions, such as a Notification of Working Conditions or an employment contract. Any deficiencies in the document may result in delays or even denial of the visa application. Below are the five items that must be included in employment contracts.

1. Employment Period and Renewal Conditions

Clearly specify the contract start date. For fixed-term contracts, be sure to include:

• The contract end date
• Whether renewal is possible and the conditions for renewal
• The maximum number of renewals

If the contract is prepared before the work visa is granted, include a clause such as: “This contract shall become effective only upon the successful acquisition of the appropriate residence status.” This ensures legal consistency with visa requirements.

2. Job Duties and Work Location

Foreign employees hired under the “Engineer/Specialist in Humanities/International Services” visa must engage in work that requires academic knowledge, technical skills, or thinking processes based on foreign cultural backgrounds. The contract must clearly describe such duties.

Additionally, specify the primary work location after employment begins. If transfers or relocation are possible, describe the scope and conditions.

3. Working Hours, Breaks, and Days Off

Include provisions outlining:

• Start and end times
• Prescribed working hours and break periods
• Days off and leave
• Rules for shift rotation, if applicable

4. Wages and Payment Conditions

Specify the following clearly:

• Base salary and amounts of various allowances, with calculation methods
• Payroll closing date and payment date
• Whether salary increases are available and under what conditions

The salary must be equal to or greater than the amount a Japanese employee would receive for the same job, as stipulated in the Immigration Control Act.

5. Matters Related to Resignation (Including Dismissal)

Clearly state:

• Types of separation (voluntary resignation, mandatory retirement, dismissal, etc.)
• Required notification period
• Grounds for dismissal

It is also advisable to include a conditional contract clause allowing contract termination in the event that the employee cannot obtain or renew their residence status.

These five items are essential contractual requirements that immigration authorities evaluate during work visa applications. Ensure all necessary information is included to support a smooth residence status approval process for your foreign employees.

Need help reviewing an employment contract or navigating the work visa application process? We’re here to assist.