All workers who work in Japan are covered by compensation for accidents sustained at work or accidents sustained while commuting to or from work. This protection applies equally to Japanese and foreign workers working in Japan. In cases where an employee is injured while at work, the employee is entitled to receive compensation during his or her absence from work in addition to having his or her medical expenses covered. This benefit can vary depending on the situation but it should amount to about 80% of the injured employee’s normal salary. This benefit will start to accrue starting after the […]
In Japan, employers must usually give at least 30 days notice before terminating an employee’s employment contract. If the employer gives less than the required notice, he or she must make up for the lack of notice by paying a full day’s salary for each day the notice was insufficient.
In general, employers and employees are given expansive freedom to agree to any type of employment contract they wish. However, the Labor Standards Act contains a series of protections for employees that restrict employers’ ability to draft unfair employment agreements. The minimum wage is among these protections. Even if an employee agrees to a salary below the minimum wage, labor law demands that the salary be raised to the minimum level.
The rate of overtime pay in Japan varies by the type of overtime the employee is performing. For example, working in excess of statutory working hours will result in overtime pay of 125% of an employee’s salary, while hours worked late at night in excess of statutory working hours exceeding 60 hours in a month should be paid at 175% of an employee’s base hourly salary. In addition to these two types of overtime there are a variety of other situations that result in different pay scales being applied.