Japanese companies are required to grant 10 days of paid leave to employees who have been working continuously for at least 6 months and have reported to work at least 80% of the time. As the employee continues to work for the company, the number of paid leave days will increase by one additional day after the first year of employment to any increase of 10 additional days after working 6 years or more for the employer.
While it is possible to set up a Japanese company from abroad, some of the requirements to establish a company become more difficult if the founder is not present in Japan. Specifically, it can be quite difficult for the company founder to submit the required certificate of registration for their personal seal or find a company representative who is a resident of Japan.
The Employee’s Pension Insurance (EPI) is the mandatory national pension plan set up by the Japanese government. Participation is mandatory and all full-time employees who work for companies in Japan with 5 or more employees must be covered by the EPI. Part time workers are also covered if his or her work arrangements resemble those of a regular worker.
Japan’s Employee Health Insurance (EHI) System provides health insurance for workers in Japan. Employers are responsible for enrolling their employees in EHI and all employees who work for companies of more than five people must be covered. This applies equally to Japanese employees and foreign nationals. Part time workers whose work arrangements and duties resemble full time workers must also be covered by the EHI.