Employment contract and written conditions
Employment agreement and the statutory notice of working conditions under Japanese labour law.
HIRING IN JAPAN
How to hire and employ people in Japan
A practical guide for overseas employers, procurement teams and talent acquisition: which engagement model is lawful for your situation, who carries which obligation, and what TAC can contract for.
ENGAGEMENT MODELS
Four engagement models, compared
In Japan the applicable law and the licence you need are decided by who gives instructions to the worker — not by what the contract is called. Substance beats labels.
| Model | Who directs the work | Legal employer | Japanese licence required | Best when |
|---|---|---|---|---|
| Recruitment / direct hire | You | You | Fee-charging employment placement 13-ユ-317654 |
You have (or will have) a Japanese entity and want permanent headcount |
| Worker dispatch (the "EOR" model) | You | Tech Alliance Co., Ltd. | Worker dispatch licence 派13-318670 |
No Japanese entity, or you do not want to run Japanese payroll and insurance, but you want to direct the work |
| Temp-to-perm (紹介予定派遣) | You | TAC first, then you | Both licences 派13-318670 / 13-ユ-317654 |
You want to confirm fit on real work before committing to permanent headcount |
| Outsourcing / contracted services | TAC | Tech Alliance Co., Ltd. | No dispatch licence needed — but the boundary has to be real | You can hand over a defined scope and a deliverable |
COMPLIANCE
The client-side risk: Article 40-6 of the Worker Dispatch Act
In force since 1 October 2015, the deemed labour-contract offer rule puts the consequence of unlawful dispatch on the client company receiving the workers, not only on the vendor. The client is deemed to have offered the worker direct employment on their existing terms. That deemed offer cannot be withdrawn for one year, and an employment contract is formed if the worker accepts within that period.
- Having a dispatched worker perform prohibited work (port transport, construction, security, certain medical services)
- Receiving dispatched workers from an unlicensed provider
- Receiving dispatch beyond the establishment-level period limit
- Receiving dispatch beyond the individual-level period limit
- Disguised contracting — using a services or subcontract label to escape the Dispatch Act
The rule does not apply if the client neither knew, nor was negligent in not knowing, that the arrangement was unlawful. Read the other way: not having checked your supplier's licence number can itself be the negligence. Verify the licence before you sign — ours are published in the table above.
EMPLOYER OF RECORD
What TAC actually carries as the legal employer
Under worker dispatch and temp-to-perm, Tech Alliance Co., Ltd. is the employer. The following sits on our side of the line, not on your management overhead.
Payroll, withholding and year-end adjustment
Monthly payroll, income and residence tax withholding, and the year-end tax adjustment.
Social insurance (health, employees' pension)
Enrolment for eligible staff and payment of contributions.
Labour insurance (workers' accident, employment)
Enrolment, annual declaration and payment, and handling of workplace accidents.
Work rules, hours and the Article 36 agreement
Work rules, working-time records, and the overtime agreement filed with the Labour Standards Inspection Office.
Equal pay for equal work for dispatched staff
Treatment set under either the labour-management agreement method or the client-parity method, with the required explanation to the worker.
Annual leave and separation procedures
Statutory paid leave and the full leaving process including the separation certificate.
Status of residence for foreign nationals
Confirming a status of residence that permits the work, and supporting the related procedures.
FOR PROCUREMENT
For procurement: who you contract with
The details a vendor review asks for first. Supporting evidence — certificate of registered matters, copies of the licences, financial information — is available on request.
Contracting party (Japan)
Tech Alliance Co., Ltd.
Tech Alliance株式会社. Established 8 December 2023, capital JPY 21.5 million, 1-4-17 Hokima, Adachi-ku, Tokyo. Japanese contracts and invoices are issued by this entity in JPY.
Japanese licences
派13-318670 / 13-ユ-317654
Worker dispatch licence and fee-charging employment placement licence. Holding both is what makes lawful temp-to-perm possible from a single supplier.
Group parent
Tech Alliance Consultancy Services Pte. Ltd.
Founded in Singapore in May 2013, UEN 201334507D. Available where you need a contracting party outside Japan.
China licences
HR service and labour dispatch
(Hu) Ren Fu Zheng Zi [2015] No. 1700000523 and Hu Ren She Pai Xu Zi No. 00471, held by Shanghai Te'an Enterprise Management Co., Ltd., for engagements that also touch China.
Footprint and scale
Approx. 20 in Japan, 80+ group-wide
Tokyo (Adachi and Hongo PMO), Singapore HQ, Seoul, Hong Kong, Shanghai, Nanjing, Xi'an and India.
Working languages
Japanese, English, Chinese, Korean, Hindi
Contracts, working-condition notices and day-to-day coordination are handled in your language.
FAQ
Frequently asked questions
The questions overseas employers and procurement reviewers actually ask.
Can we employ someone in Japan without setting up a Japanese entity?
Yes. Under worker dispatch, Tech Alliance Co., Ltd. is the legal employer (dispatch licence 派13-318670) and your managers direct the work — with no Japanese entity of your own. Payroll, social and labour insurance, withholding tax and the rest of the employer-side administration sit with us.
Is EOR legal in Japan?
There is no licence in Japan called "EOR". If in substance your company directs the worker, the arrangement is worker dispatch, and only a provider holding a worker dispatch licence may supply it. Where an unlicensed provider offers this under the "EOR" label, the legal exposure lands on you as the client.
What happens if our provider turns out to be unlicensed?
Under Article 40-6 of the Worker Dispatch Act you, as the client, are deemed to have offered that worker direct employment on their existing terms. The deemed offer cannot be withdrawn for one year, and a contract of employment is formed if the worker accepts. The rule does not apply if you neither knew nor were negligent in not knowing the arrangement was unlawful.
How long can we keep a dispatched worker?
As a rule, three years per client establishment, extendable if the client consults the majority union or employee representative. Separately, the same individual may be received in the same organisational unit — typically a department — for up to three years. Exceeding either limit is one of the situations Article 40-6 covers.
Can we convert a dispatched worker into our own employee?
Yes. When conversion is the intent from the start, the correct route is temp-to-perm (紹介予定派遣). Only a provider holding both a worker dispatch licence and a fee-charging placement licence may offer it. TAC holds both.
How much do employer social insurance contributions add?
Health insurance, employees' pension, employment insurance, workers' accident insurance and the child-care contribution together come to roughly 15–16% of monthly remuneration on the employer side. Rates change by year, prefecture and industry, so we quote the actual figure per engagement.
Can you employ foreign nationals in Japan?
Yes, once a status of residence permitting the work is confirmed. For IT and engineering roles the common status is Engineer / Specialist in Humanities / International Services. Eligibility depends on the job content and the person's background, so it is worth involving us while the requirement is still being written.
Which entity invoices us, and in what currency?
Dispatch, placement and outsourcing performed in Japan are invoiced by Tech Alliance Co., Ltd. in Japanese yen. Where you need the contracting party to sit in Singapore, Hong Kong or China, group entities are available.
This page is general information about engaging people in Japan and is not legal advice on any specific matter. Whether a given structure is lawful depends on the actual scope of work and how it is operated in practice. We recommend confirming each engagement with your own counsel or a licensed labour and social security attorney (社会保険労務士).
Let's Talk
Decide your Japan employment model on facts, not guesswork.
Share the role, the headcount you expect and your target start date, and we will come back with the lawful options and how the cost is built up.