employment contracts

June 26, 2017

Do Japanese laws protect trade secrets?

When an employee leaves the service of a company, he or she is required by law to keep trade secrets confidential.  Revealing trade secrets, whether for compensation or for free, is illegal and the basis for a lawsuit under Japan’s unfair competition laws.  Companies are subject to the same liability for questioning their own employees about the trade secrets of the employee’s former companies.
June 2, 2017

Does Japanese labor law apply to labor contracts governed by foreign law?

Companies and employees are free to set the governing law for employment contracts however they wish.  This is particularly helpful for a foreign company that wishes to draft employment contracts that will be enforced according to the laws of its home country.  However, in general, employees in Japan may still take advantage of Japan’s protective employment laws, such as the Labor Standards Law, even if their employment contract is governed by a foreign country’s laws.
April 21, 2017

Do employees get a bonus for creating an invention in Japan?

In certain industries it is common for employment contracts to contain a clause that grants the rights to all inventions by the employee to the employer in exchange for compensation.  In some cases, the employers will set the compensation beforehand, essentially providing a set bonus for any and all inventions by employees.
February 1, 2017

Is it possible for a foreign national to start a side business in Japan?

Incorporating a company in Japan is relatively easy but it may be difficult under certain circumstances for some foreigners living in Japan to be a founding member of a corporation.  The two main difficulties that foreign nationals will encounter when establishing a side business in Japan are restrictions in their employment contract at their main job and the restrictions of their Japanese visa.