Is it necessary to have an employee handbook?

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Companies who have 10 or more employees should compile a handbook with all the company’s work rules and give every employee a copy. It should also be submitted to the local Labor Standards Inspection Office. Companies with less than 10 employees are not required to draft a copy of the work rules but are encouraged to do so.

Work rules should contain all the information related to workplace regulations as well as salary, holidays and working hours. The rules have the same binding legal effect as an employment contract so it is important for both the employer and employee to understand them.

Some examples of what the work rules should contain are company’s start and end times, break times and vacation days. Rules regarding calculation of salary and dismissal should also be included. In addition to these basic rules, information regarding other company policies must be included, such as any retirement policy, safety policies, job training, bonuses and awards.

If you have any questions about drafting an employee handbook for your business in Japan, please contact our office for a legal consultation.