Legal Q&A

Q.How is overtime pay calculated in Japan?

Work beyond 8 hours a day or 40 hours a week requires a premium of at least 25%, and at least 50% beyond 60 hours a month. Statutory holiday work requires 35% and late-night work 25%.

Q.My employer is not paying my wages. What can I do?

Non-payment of wages breaches the Labour Standards Act. Demand payment in writing, then consider reporting to the labour inspection office or a labour tribunal. Claims are time-barred after three years for now.

Q.Can a company dismiss or demote an employee who is pregnant or on maternity or childcare leave? Dismissal restrictions and the ban on adverse treatment in Japan, for employers and HR

An employee generally cannot be dismissed during maternity leave and for 30 days after it (Labour Standards Act, Art. 19). Adverse treatment because of pregnancy, childbirth or childcare leave is prohibited, and a dismissal during pregnancy or within a year after birth is void unless the employer proves it was unrelated (EEO Act, Art. 9(4)).

Q.Can a Japanese employer cut an employee’s pay unilaterally? When a pay cut is invalid, and how to proceed lawfully

As a rule, no. A pay cut needs the employee’s consent or a reasonable change to the work rules; otherwise it is invalid and the shortfall can be claimed.

Q.Are post-employment non-compete clauses enforceable?

Non-compete clauses must be limited to 2 years and reasonable in scope. Without compensation, they are unlikely to be enforced.

Q.Am I protected from retaliation if I report corporate misconduct?

Whistleblowers are legally protected from dismissal and retaliation, including former employees and executives.

Q.Can an employer dismiss an employee during or at the end of a probationary period in Japan?

Refusing confirmation during probation is a dismissal and needs objectively reasonable grounds. After 14 days of work, 30 days' notice or pay in lieu is also required.

Q.Is it illegal not to enrol employees in social insurance in Japan? Coverage rules for part-time workers after the October 2026 change

Not enrolling eligible employees is illegal. From October 2026 the JPY 88,000 monthly wage requirement no longer applies; 20 hours a week is the key test.

Q.I have a freelance contract but my hours, location are fixed and other work is prohibited. Isn't this essentially employment?

Fixed hours/location and exclusivity are typical signs of false freelancing. You're likely legally an employee.

Q.Is it true that managers in Japan are not entitled to overtime pay? How is a "manager in name only" identified?

Only genuine supervisors or managers under Art. 41, item 2 are exempt from overtime pay, judged by actual authority, working pattern and pay, not title. Late-night premiums and paid leave still apply.

Q.Can we place an employee returning from childcare leave in a different department or role, such as warehouse work, instead of their original position? When a transfer becomes prohibited adverse treatment in Japan, for HR

A transfer is not automatically unlawful, but a disadvantageous change of placement because of childcare leave is prohibited (Childcare and Family Care Leave Act, Art. 10). The MHLW guideline asks employers, as a rule, to take care to return employees to their original or an equivalent position; a placement that ordinary transfer rules cannot explain and that causes considerable disadvantage is adverse treatment.

Q.I was in a traffic accident while delivering for Uber Eats or a similar app and was told workers' compensation does not apply because I am an independent contractor. Is that true?

Contract delivery riders are generally outside workers' compensation, but can join through special enrolment to be covered for delivery accidents (not commuting).

Q.A screenshot of my Slack DM badmouthing a colleague was spread company-wide and I was disciplined. DMs aren't "public," right?

A one-to-one DM is usually not "public", so criminal defamation or insult is unlikely. But discipline under the work rules is possible, and an excessive penalty may be void.

Q.Can a director in Japan be held personally liable for damages? Liability to the company and to third parties, and the mechanisms that limit it

A director who fails in their duties is personally liable to the company (Companies Act, Art. 423(1)), and to third parties such as suppliers where they acted in bad faith or with gross negligence (Art. 429(1)). Shareholders can sue on the company's behalf. Partial release, liability caps and D&O insurance can reduce the exposure.

Q.Is a shareholders' agreement legally binding in Japan? How far it reaches, and which terms belong in the articles of incorporation

An SHA binds the shareholders who sign it, but not other shareholders or the company. Terms that must be honoured should also go in the articles of incorporation.

Q.How enforceable are post-employment non-compete clauses in Japan? How courts assess validity, what employers can do on breach, and points to note for foreign parent company templates

A post-employment non-compete in Japan is valid only within reasonable limits, judged by the employer's interest, the employee's position, duration, territory, scope and compensation. Overly broad clauses can be void, so secure trade secrets and confidentiality first.

Q.Can a company terminate a business contract before it expires in Japan? Termination by agreement, under a termination clause and for breach, and what to check before you terminate

A contract can be ended early by agreement, under its termination clause, or by statutory termination for the other party's non-performance. Termination for non-performance generally requires a prior demand and is not available where the breach is minor (Civil Code, Art. 541). Terminating without a proper basis can itself be a breach.

Q.How do you register a trademark in Japan? Official fees, the first-to-file rule and what overseas companies need to know

A trademark right in Japan arises on registration with the JPO, and the first applicant prevails (Trademark Act, Arts. 8(1) and 18(1)). Official fees are JPY 3,400 plus JPY 8,600 per class on filing and JPY 32,900 per class on registration for ten years. Overseas applicants file through a representative in Japan.

Q.An employee entered confidential company information into ChatGPT for work. What should the company do? Whether a report is required under Japan's APPI, the effect on trade secrets and partners, discipline and prevention

First establish what was entered, into which service and under what settings. Personal data entered without consent and used for AI training may breach the APPI, and incidents within Article 7 of the Rules must be reported to the PPC and notified to individuals. Base any discipline on the work rules and proportionality, and set AI usage rules promptly.

Q.Our AI-generated logo was rejected for trademark registration. Can AI-generated works not be trademarked?

Being AI-generated is not a ground for refusal. The likely causes are lack of distinctiveness (Art. 3(1)) or similarity to an earlier mark (Art. 4(1)(xi)); you can respond with a written opinion or amendment.

Q.We cancelled a SaaS subscription but are still being charged "three months’ fees after cancellation". Is that clause in the terms of use valid?

Not automatically. For consumers, fees above the average loss are void; between businesses, unfair clauses in standard terms are deemed not agreed.

Q.How much of the security deposit must be returned on move-out in Japan? What can be deducted, normal wear and tear, and when special clauses are valid

The deposit is returned after hand-back, less unpaid rent and restoration costs the tenant must bear. Normal wear and tear is, as a rule, the landlord's cost unless clearly agreed otherwise.

Q.A person has died in a property we own or manage. Must we tell the next tenant or buyer? Disclosure of "stigmatised properties" and the MLIT Guidelines, for landlords and real estate businesses

Natural deaths and accidental deaths in daily life generally need not be disclosed. Other deaths, or deaths requiring special cleaning, must be disclosed where they would significantly affect the other party's decision; for leases, generally not after about three years. Always disclose if asked (MLIT Guidelines).

Q.What is the typical compensation for online defamation in Japan?

Compensation for online defamation typically ranges from 300K-1M yen for individuals and 500K-3M yen for businesses.

Q.How can I identify an anonymous online poster?

You can identify anonymous posters through a court disclosure order. Act quickly as logs are only kept 3-6 months.

Q.Our company's official social media account or business account has been hijacked. What should we do legally? The Unauthorized Access Act and data-breach reporting in Japan, for businesses

Hijacking an account with someone else's ID and password is a crime under the Unauthorized Access Act (up to 3 years' imprisonment or a JPY 1 million fine). Recover the account, enable multi-factor authentication, preserve evidence and consult the police; if personal data may have leaked, consider reporting to the PPC and notifying individuals.

Q.A former employee left a 1-star Google Maps review calling our company a "black company" with a boss who habitually power-harasses. Can we request deletion and identify the poster?

You can seek a court injunction for deletion and identify the poster through disclosure requests to claim damages.