When an employer hires, it must give the employee written notice of core terms: the contract period and, for fixed-term contracts, the criteria for renewal; the place of work and duties; working hours, breaks, overtime, days off and leave; how pay is calculated, cut off and paid; and the grounds for termination, including dismissal. Other terms, such as bonuses and retirement allowances, must be stated if the company has them. Since April 2019 the notice can be sent by email or similar if the employee wishes. Many employers combine it with the offer letter.
If the actual terms turn out to differ from those stated, the employee can resign immediately. Failing to give the notice is an offence carrying a fine of up to 300,000 yen.
The April 2024 changes added three items. Every notice must state the scope within which the workplace and duties may change in future, not only the initial assignment. Fixed-term contracts must state any cap on renewals or total length. And when a fixed-term employee gains the right to convert to an open-ended contract, each renewal notice must say so and set out the terms after conversion.
What it means for a foreign employer
- A global offer letter may not be enough. Check that it covers every mandatory item, or issue a separate notice alongside it.
- The change-of-scope clause shapes future transfers. In April 2024 the Supreme Court held that where an employee's job type is limited by agreement, the employer cannot reassign them without consent. Drafting the scope narrowly limits your options later.
- State renewal caps up front. Fixed-term hires must be told about any cap at the outset. Introducing one later is a common trigger for disputes.
- Give a bilingual version. The law does not require one, but senior candidates expect it, and the labour ministry publishes model notices in English.
Sources
- Labour Standards Act, Articles 15 and 120.
- Ordinance for Enforcement of the Labour Standards Act, Article 5 (electronic delivery from April 2019; additional items from 1 April 2024).
- Supreme Court, Shiga Prefecture Social Welfare Council case, 26 April 2024.