Employer of Record (EOR) in Japan
Expand your business into Japan without the burden of setting up a local entity. Native Teams acts as your legal employer in Japan, managing compliance, payroll, taxes, and more, so you can focus on growth.
How does an EOR in Japan work?
When you partner with Native Teams as your Employer of Record in Japan, we become the legal employer of your local staff while you maintain control over their daily work and performance. We handle employment contracts, social insurance contributions, tax withholdings, statutory benefits, and compliance with all Japanese labour laws.
This structure allows your business to operate in Japan without going through the long and expensive process of establishing a local entity. From onboarding to monthly payroll and documentation, everything is managed under one compliant system.
Who can use EOR Services in Japan?
Our EOR solution is designed for businesses of all sizes - from startups to large enterprises - that want to hire in Japan without setting up a legal presence. Whether you're hiring one specialist or building an entire team, our platform makes it easy to employ staff in full compliance with Japanese employment regulations.
If you're testing the market, running a short-term project, or scaling your presence in Japan, an EOR is a fast and cost-efficient solution.
Features of Native Teams EOR services in Japan
Employment status
We legally employ your team in Japan on your behalf, ensuring they receive official employee status and all relevant protections and benefits under Japanese law. You retain full operational control while we manage compliance.
HR administration and documentation
HR tasks are automated, with easy access to documents via the Native Teams dashboard.
Global payroll
Our payroll system ensures accurate salary calculations, tax deductions, and social insurance contributions for your team in Japan. Payments are processed on time every month in accordance with Japanese labour standards.
Benefits
We manage statutory benefits such as health insurance, pension, and paid leave. You can also choose to offer additional perks to attract and retain top talent in the competitive Japanese job market.
Learn more about Japan’s labour laws in our hiring guide
What legal requirements exist for employment in Japan
Employment contract
The employer must provide a written labour contract or detailed work conditions statement (労働条件通知書 - Roudou Joken Tsuchisho) specifying essential terms, including salary, working hours, workplace location, job duties, and termination conditions. This document must be provided on or before the first day of employment.
Working hours and leave
Standard working hours are limited to 40 hours per week and 8 hours per day. Any overtime requires a written agreement. Employees must receive at least one day off per week.
Social insurance
Employers must make contributions for the employee in mandatory insurance systems, like health, pension, employment, and workers’ accident compensation insurance.
Salary and benefits
A minimum wage applies, varying by prefecture. Employers must pay at least monthly and provide overtime pay at a premium rate (typically 125% of regular wages).
Equal opportunity and non-discrimination
The Labour Standards Act prohibits discrimination based on nationality, creed, or social status. The Equal Employment Opportunity Law specifically prohibits gender discrimination in recruitment, hiring, promotion, training, and benefits.
Termination of employment
Japanese law makes it difficult to terminate employees. Employers must have "objectively reasonable grounds" and follow proper procedures. The standard notice period is 30 days or payment in lieu of notice.
Record keeping
Employers must maintain employment records for wage ledgers, working hours, social security, labour contractor, and work condition statements. Depending on the document type, these records must typically be kept for three to five years.
Please note that laws and regulations in Japan can change. So, it’s important to keep abreast of the latest developments regarding labour law.
Why choose Native Teams as your Japan Employer of Record?
Complying with Japan’s employment laws can be challenging, especially if you’re not based in the country. Native Teams helps your business avoid compliance risks by taking full responsibility for legal employment.
We prepare compliant contracts, handle payroll taxes and social contributions, and ensure proper record-keeping in line with Japanese requirements. With a presence in over 85 countries and a strong understanding of local labour law, we help you hire seamlessly and stay compliant, all without setting up a local office.
``What is an Employer of Record?
An Employer of Record (EOR) is a third-party service provider that officially employs your workers on your behalf. The EOR handles legal responsibilities such as signing local employment contracts, paying salaries, managing taxes, and complying with labour regulations. You remain responsible for directing the employees’ work, while the EOR ensures you meet all legal obligations in Japan.
What are the costs of using an Employer of Record in Japan?
The cost of using an EOR in Japan varies depending on the size of your team and the services included. Native Teams offers custom, flexible and transparent pricing packages. To know more about our EOR pricing structure, please visit our pricing page.
What is the difference between PEO and EOR?
An EOR fully takes on legal employment responsibilities like payroll, taxes, and compliance, while a PEO shares these responsibilities with the client in a co-employment arrangement. In Japan's context, EORs are particularly suited for foreign companies expanding into the market without legal entities, handling complex requirements like social insurance and labour contracts. PEOs are used by businesses already operating in Japan to streamline HR functions.
What are the responsibilities of an Employer of Record (EOR) service provider?
EOR providers act as legal employers, managing payroll, benefits, and employment contracts while ensuring compliance with Japanese labour laws. They handle specific requirements like the year-end tax adjustment (nenmatsu chosei), social insurance enrollment, and work visa sponsorship. They reduce risk by assuming liability for employment issues and offer HR support, enabling businesses to focus on operations.
Is using an Employer of Record in Japan legal?
Yes, using an EOR in Japan is fully legal and complies with Japanese labour regulations. International companies often use EOR services to enter the Japanese market, particularly when they need to navigate complex local employment laws and visa requirements.
Why should I use EOR instead of opening my own company or an office in Japan?
An EOR allows businesses to avoid the complexities of setting up a legal entity in Japan, which can be time-consuming and expensive. The EOR manages legal employment tasks, such as payroll and compliance with Japan's strict labour laws, and offers flexibility to scale operations without the challenges of closing a company if plans change.
How many people can I employ in Japan?
There is no legal limit on the number of employees a company can hire in Japan as long as labour laws are followed. However, certain regulations apply based on company size - for example, companies with 10 or more employees must file work rules (shūgyō kisoku) with the Labour Standards Office.