The Ultimate Service to Employment and Expanding your Business in Japan
New Horizons Global Partners Employer of Record (EOR)/PEO Services in Japan enable you to expand your business into Japan quickly and cost-effectively. We achieve this through a holistic approach, providing services and expertise in all areas related to establishing a presence, locating and supporting personnel in Japan.
Expansion into global markets creates several complexities for the management of staff working abroad. Organizations have to carefully navigate the legal requirements and obligations within each country to ensure compliance is upheld at all times. Managing this across multiple countries further increases these complexities. We hire your staff locally in Japan and take care of the payroll and HR administration associated with your headcount so that you can expand your business into Japan immediately. Taking advantage of talented professionals and sales opportunities in Japan just got easier.
On-site legal team
We help the client with staff payroll, employee insurances, tax and withholdings, and immigration requirements. We also provide all types of Japan employment/labor contracts for your staff: fixed-term contracts, open-ended contracts, project-based agreements, and short-term mission agreements. NH Global Partners employs and payrolls the employees and seconds them onsite to provide services to the client
Full country coverage
We can help you do business globally by becoming your in-country employer of staff by legally employing personnel in Japan on your behalf and seconding them back to you under a services agreement. We offer recruitment services and employment solutions in any part of the country, any province / city according to your work and employee’s requirements
Japan Labor Law
We enable clients to hire, deploy and manage staff in diverse jurisdictions flexibly and efficiently, with full confidence in their compliance with Japan’s local regulations. We maintain country employment relationship by ensuring local compliance with payroll contributions and withholding, with a clear breakdown of the payroll, benefits, reimbursements and mandatory termination/severance costs.
What does our employment solutions for Japan include?
Employment in Japan – FAQ
Our expertise for your success.
Whether you are looking for foreign or local employees, we can assist with business visas, working visas, local payroll, and taxes, alongside general employment support so that you can expand your business into Japan in no time at all.
Foreign workers are required to have the proper visas and work permits in Japan, as established by immigration laws. Workers entering Japan generally enter through a points-based highly skilled visa or one of the industry-specific categories for working visas. These categories include areas such as ‘business manager’ or ‘intra-company transferee’. Work permits must be secured for employees and sponsored by a locally licensed and incorporated entity, which can be a problem for companies just entering the Japanese market. New Horizons will sponsor the employee for the necessary permits.
A university degree or considerable professional experience in the applicable field is required to qualify for most working visa types. Many also require having a prospective employer as a sponsor. Residence permission is granted in periods between 4 months and can be extended to 5 years.
New Horizons prepares all payroll calculation (including social charges, taxes, benefits, expenses claim, etc.) for the foreign company to validate on a monthly basis. This validation process is the only procedure requested from the foreign company, in order to ensure a constant follow up of the overseas teams’ labor costs. All onboarding and termination procedures are handled by New Horizons in accordance with local norms. We manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Japan.
The number of overseas employees is not limited and can vary according to the ongoing projects and business development.
In Japan, there is no statutory requirement for employers to offer any form of severance payment on termination of employment. An employer must generally give an employee at least 30 days’ advance notice of dismissal, or pay the employee in lieu of all or part of this notice period, while an employee may generally resign with two weeks’ notice.
The dismissal of employees in Japan can be difficult due to the preservation of “lifetime employment” in Japanese society. Probation periods are common in Japan and will normally range from 3 to 6 months, and should not exceed 1 year. During the probationary period, an employee can be dismissed if the employer has objectively reasonable grounds to do so, else the dismissal would be considered unreasonable.
To assist you in establishing and maintaining your business operation in Japan, New Horizons act as a professional Employment Organisation (PEO). In this regard, we act on your behalf to employ staff for your Japanese organization. We provide you with a comprehensive administrative and legal support for hiring local professionals to develop your business in Japan. Among these services are setting up payroll structure for employees, assisting with employment contract negotiations, and other relevant administrative procedures.
No, a foreign company can only hire staff in its working location (city level). Hiring an employee in a different city requires the opening of a corresponding local subsidiary.
New Horizons can legally employ staff in Japan on your behalf and second them back to you under a service agreement (i.e. New Horizons becomes your employer of record in Japan). This arrangement massively simplifies your expansion, enabling you to effectively hire staff immediately to perform your sales activities, market research, set-up activities without the need for the various costs, times and commitment associated with setting up an entity. This removes the unnecessary cost and time associated with setting up and maintaining a legal entity, investing minimum capital, annual company administration, enabling you to expand your business into Japan in a very short time.
New Horizons PEO service provider will save you time by enabling you to hire immediately and remove any HR administration, visa applications, employee insurances, pension and tax payments that prevent you from focusing on your Japan business growth. After an initial phone call with our team of HR specialists, we will send you a proposal suited to your requirements within 24 hours. Once the paperwork is signed, we can arrange for your employees to start working for you within as little as one day.
No, New Horizons manages all aspects of payroll for workers in Japan, including taxes, withholding, social security payments and other statutory requirements. Tax and compliance management matters are lifted from your shoulders onto ours. New Horizons becomes the Employer of Record and employs the staff on behalf of the client. A Staff is paid monthly with tax and social security deducted at source and paid to local authorities.
Companies can outsource the employment and payroll of their staff in Japan to a PEO like New Horizons. This is possible for both foreign employees Japan nationals. This is the easiest, fastest and safest way to payroll staff in Japan.
In Japan, staff can be home-based or work in the location they prefer depending on their scope of activity, as long as their foreign employer gives its approval. New Horizons help companies look for more cost-effective and flexible ways to set up a presence in Japan without having to commit to a legal entity.
New Horizons can implement any changes directly with the employee on behalf of the foreign company. When negotiating terms of an employment contract and offer letter with an employee in Japan, it may be useful to keep the work rules and standard benefits in Japan in mind.
Employers with 10 or more employees are required to create and file Work Rules (shuugyou kisoku) with the Labor Standards Inspection Bureau. The Work Rules will constitute part of the employment contract and will stipulate certain terms of employment such as work hours, holidays, termination of employment and wages. Employees hired through our Japan PEO service are covered under our local teamwork rules.
Want to expand your business into Japan?
Hiring staff in Japan under New Horizons PEO service provider gives you a massively higher level of flexibility than if you were to set up a company. Not sure about whether the Japan market is right for you? New Horizons PEO employment ensures that you can quickly scale up and down before taking the plunge.
Why you should consider using New Horizons PEO Services in Japan:
- We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary.
- You want to expand your business into Japan but do not have a legal entity set up locally to hire and employ staff.
- You want a cost-effective solution to setting up a presence in Japan.
- You looking to test the market without making a significant investment before fully committing to opening an office in Japan.
- You already have existing contractors in Japan and want to convert them into an employee.
- You want to avoid the financial costs and compliance risks involved in maintaining a foreign corporate entity which is too high for the potential benefit of setting up a presence in Japan.
- You feel the need to hire an individual (or a team) in Japan today but need an interim solution whilst you set up your legal entity.
NH Global Partners manage the risk on your behalf so that your teams can focus on their business activities.
Our Japan support team can help you understand the steps to hire employees in Japan right away!