Under the Labour Standards Act, a full-time employee who has worked for six months and attended at least 80% of working days earns 10 days of paid leave. The entitlement rises with service: 11 days after a year and a half, 12 after two and a half, then up by two days a year to a maximum of 20 days after six and a half years. Part-time employees earn a proportional amount.
Unused leave carries over for one more year, then expires. Employers have no statutory duty to pay out unused leave when someone leaves.
Historically, Japanese employees took only around half of their leave. Since April 2019, employers must make sure every employee granted 10 or more days takes at least five of them in the year, setting the dates themselves if needed. National holidays are separate and do not count.
What it means for a foreign employer
- It stretches start dates. Candidates who resign often use up their accumulated leave before their last day, sometimes a month or more. Expect it in the timeline from offer to start.
- Track the five-day minimum. It is the employer's legal duty, not the employee's, and inspectors check it.
- New hires start at zero. Leave is earned by service with the current employer. A senior hire who had 20 days at their previous company starts with none for six months, unless you grant leave from day one. Many foreign companies do, and it helps close an offer.
Sources
- Labour Standards Act, Article 39 (including the five-day obligation in force from 1 April 2019) and Article 115 (two-year limitation period).