In general, an employee in Japan may not be fired if the dismissal lacks objectively reasonable grounds. Dismissals are also invalid if they occur within 30 days of an employee missing work for medical treatment, or for a woman employee leading up to or following childbirth. These rules prevent companies from arbitrarily firing employees or punishing them for taking necessary medical leave.
The Japanese government assesses a number of taxes and fees during the course of the establishment of a new corporation in Japan. Some of these fees include a stamp for the articles of incorporation (approx. 30,000 JPY) and a registration license tax (150,000 JPY or 0.7% of the capital investment, whichever is higher).
In order to ensure predictability in the management of their business and staff, many employers will draft employment contracts that specify that employees must give notice before quitting their job. Typically the required notice will be several weeks to several months. However, even if an employee fails to give notice, employers cannot force pre-determined penalties on employees who suddenly quit.
In order for a foreign national to live and work in Japan, it is necessary to have a proper visa. This requirement can make it difficult for foreign investors to start a business in Japan. However, to solve this problem and encourage foreign investment, Japan has established the “Investor/Business Manager” visa.