Employment Contracts

Employment contracts operate in much the same way as any western country, but the offer letter can have its quirks. To the consternation of many westerners, offer letters are sometimes frustratingly vague on one key point: your salary. Many will only indicate a salary range, rather than a precise figure, and attempts to press your prospective employer on this can cause affront. Agree to take the job and the pay will be specified in the contract.

By law, all employers must provide a written contract spelling out standard terms and conditions including pay, working hours, holiday entitlement, overtime procedures and notice periods. One standard benefit is a commuting allowance. This is calculated in accordance with the cost of a monthly train ticket between an employee’s home and the office. Most contracts will feature a probation period of three to six months and will need to be renewed annually. Japan attaches great prestige to permanent contracts, and those joining a company mid-career generally won’t get one. Pay rises are another controversial aspect. Most Japanese firms award salary increases in line with age and length of service and attempts to haggle are unlikely to be productive. Maternity leave should pose no problem and legal entitlement is one year. To leave a company before the contract ends, give notice (in writing) as specified in your contract.

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