Business
Japan — Business: Hiring Employees
Japanese employment law is primarily governed by the Labour Standards Act (LSA) and its Enforcement Ordinance, which set minimum terms for employment contracts. A 2026 LSA amendment expanded mandatory written disclosures to include job-scope limitations, possible changes in work location, and conditions governing fixed-term contract renewal. Employment contracts should be issued within 14 days of an employee's start date, covering job responsibilities, working hours, salary, and benefits. Probationary periods of 3-6 months from the hire date are standard practice. Fixed-term contracts are generally capped at 3 years, extended to 5 years for employees with specialized expertise or those aged 60+. From 1 April 2026, mandatory gender pay gap and management-ratio disclosure expands to employers with over 100 employees (previously the threshold was over 300).
Key facts
- Governed by the Labour Standards Act (LSA); 2026 amendment expands required written disclosures (job scope, location changes, fixed-term renewal conditions).
- Contracts should be issued within 14 days of the employee's start date.
- Standard probation period: 3-6 months from hire date.
- Fixed-term contract cap: 3 years generally, 5 years for specialized-expertise employees or those 60+.
- From 1 April 2026: gender pay gap disclosure mandatory for employers with 100+ employees (down from 300+).
Steps
- Draft a compliant written contract — Include job scope, work location possibilities, hours, salary, benefits, and fixed-term renewal terms per the 2026 LSA amendment.
- Issue within 14 days of start date
- Set a probation period — Typically 3-6 months.
Timelines
- Contract issuance deadline: within 14 days of start date
- Standard probation period: 3-6 months
- Fixed-term contract maximum (standard / specialized-or-60+): 3 years / 5 years
- Gender pay gap disclosure threshold lowered to 100+ employees: effective 1 April 2026
Required documents
- Written employment contract (LSA-compliant disclosures)
Common mistakes
- Using outdated contract templates that omit the 2026-mandated disclosures on job-scope limits and fixed-term renewal conditions.
- Overlooking the 2026 gender pay gap disclosure threshold drop to 100+ employees if headcount is near that range.