Most Japanese employers set a probationary period in their work rules, commonly three to six months. The employee is already employed. Probation does not create a separate trial contract that simply lapses.
The leading case is Mitsubishi Jushi, decided by the Supreme Court on 12 December 1973. The court treated probation as employment with a reserved right to cancel, which the employer can use more broadly than an ordinary dismissal, because it is still assessing the person. But it can only be used where there are objectively reasonable grounds that are socially acceptable, typically facts the employer learned during probation and could not have known at hiring. Courts expect a real assessment, feedback and usually a chance to improve.
Notice rules follow the Labour Standards Act. Article 21 lets an employer dismiss a probationer without the usual 30 days' notice or pay in lieu only within the first 14 days. After that, normal notice applies. Probation can be extended only if the work rules or contract provide for it, and for a reason.
What it means for a foreign employer
- Probation is not an at-will window. Ending employment at month five because the hire "is not a fit" needs documented, specific grounds.
- Document from week one. Set objectives, give written feedback and record what you discussed. Without a record, the reserved right is hard to use.
- Senior hires notice the clause. A candidate resigning a secure job may ask for a shorter period or for probation to be waived. It is a reasonable concession for a well-referenced hire.
- Put the terms in writing. State the length, any extension and any different pay in the work rules and the offer.
Sources
- Supreme Court, Mitsubishi Jushi case, 12 December 1973.
- Labour Standards Act, Articles 20 and 21.
- Labour Contract Act, Article 16.