Jinzai shokai 人材紹介

Fee-charging placement by a licensed recruitment agency. Also written jinzai shōkai, recruitment agency, placement agency, yuryo shokugyo shokai, executive search.

Any business that charges a fee for matching job seekers with employers needs a licence under Article 30 of the Employment Security Act. The first licence lasts three years and renewals five. Applicants must meet financial thresholds and have a qualified placement manager at each office. The market is crowded: around 30,600 licensed offices filed reports for fiscal 2024, although fewer than half made a placement that year.

Fees are paid by the employer. Agencies file a fee schedule with the authorities, and most charge a percentage of the hire's theoretical annual pay, meaning twelve months' salary plus expected bonus, on a contingency basis: no hire, no fee. Industry guides commonly put the rate at around 30 to 35%. Retained search, with part of the fee paid up front, is used for senior and confidential roles. Refund clauses, scaled by how soon a hire leaves, are standard.

The law also regulates conduct. An agency may not encourage someone it placed in an open-ended job to change jobs again for two years. Since 2018 agencies must publish their fee schedule, refund policy, number of placements and how many hires left within six months on a ministry website.

What it means for a foreign employer

Sources

Spotted something wrong, or have an example from your own hiring in Japan? Suggest an edit.

General information for employers, not legal advice. Thresholds and dates are checked against the sources listed and dated above; confirm anything you act on with a Japanese employment lawyer or a licensed labour and social security attorney.