HR, PEO & Employer of Record (EOR) Services in Japan

Introduction

Japan offers one of the world’s most advanced markets, known for its innovation, stability, and strong consumer purchasing power. With a highly skilled workforce, robust infrastructure, and a business culture that values long-term partnerships, Japan provides a strategic base for regional and global expansion. For companies looking to grow in Asia, entering Japan means tapping into a market that combines tradition, cutting-edge technology, and global influence.

EOR & PEO Solutions in Japan

If you’re looking to hire employees in Japan without setting up a legal entity, using an Employer of Record (EOR) like Empleyo is the simplest and most compliant path forward. An EOR in Japan acts as the official legal employer on your behalf, managing everything from payroll and HR administration to employment contracts and statutory employee benefits.

This model allows you to expand into Japan quickly, while remaining fully compliant with local labor laws without the complexity or cost of registering a local entity.

What Is an Employer of Record in Japan?

An Employer of Record Japan (also known as an EOR provider) enables businesses to hire and onboard Japan employees without having to incorporate in-country. The EOR manages:

You continue to oversee your team’s day-to-day tasks, while the EOR service handles legal obligations as the official employer on paper.

What’s the Difference Between EOR and PEO?

A Professional Employer Organization (PEO) typically supports businesses that already have a registered entity in Japan, offering co-employment solutions for HR, payroll, and benefits. An EOR, however, is ideal when you don’t have a legal presence in Japan but still want to hire full-time staff.

Whether you choose an EOR or PEO depends on your Japan hiring strategy, budget, and long-term plans for the market.

Benefits of Using an EOR Service in Japan

By using an EOR solution, companies can confidently build their team in Japan, access top talent in Japan, and stay focused on business growth without getting tangled in bureaucracy.

Hiring in Japan

Japan is a thriving market with a growing pool of skilled professionals, making it an ideal destination for businesses looking to expand globally. But to hire in Japan successfully, it’s important to understand your options especially when you don’t have a legal entity in Japan.

That’s where using an Employer of Record in Japan makes all the difference.

Your Hiring Options in Japan

Businesses have two main paths to hire employees in Japan:

The second option is faster, lower-risk, and ideal for companies that want to test the Japanese market, launch quickly, or hire remote employees without permanent infrastructure.

Why Use an EOR to Hire in Japan?

This approach is especially useful for startups, global teams, and growing businesses that need to hire quickly and remain fully compliant.

Employment in Japan

Understanding how employment in Japan works is key to managing your team successfully and staying compliant. Whether you’re hiring directly or using an Employer of Record (EOR), companies must follow Japanese labor laws closely especially when it comes to employment contracts, payroll, and employee benefits.

That’s why many growing businesses choose to use an EOR in Japan to handle these responsibilities with confidence.

Employment Contracts in Japan

All employees in Japan must be hired under a written employment contract, clearly outlining the job role, salary, benefits, working hours, and duration of employment. Contracts must comply with the Labor Code of Japan, and are usually signed before or on the first day of work.

By working with a Japan employer of record, you can ensure that all employment contracts in Japan are properly structured, compliant, and aligned with local requirements without having to hire a full in-house HR team.

Payroll & Employer Contributions

Payroll in Japan involves more than just paying a monthly salary. Employers are required to withhold income tax and make contributions to:

These deductions and employer contributions are calculated based on the employee’s gross monthly salary, and must be submitted on time to remain compliant. An EOR in Japan handles this for you managing all payroll, tax filings, and reporting on your behalf.

Employee Benefits and Leave

Japanese labor law mandates several employee benefits, including:

Using an employer of record service ensures your team in Japan receives all required benefits and that your business remains fully compliant with Japanese employment law.

Termination & Notice Periods

Ending an employment contract in Japan requires careful adherence to strict labor regulations designed to protect employees. Employers must provide at least 30 days’ advance notice or payment in lieu, with dismissals permitted only under objectively reasonable and socially acceptable grounds. Given Japan’s strong employee protections and emphasis on stability, working with an Employer of Record helps businesses navigate compliance, reduce risk, and ensure smooth workforce transitions.

Visas & Permits in Japan

If you’re planning to hire employees in Japan or bring in foreign talent, understanding Japan’s visa and permit requirements is critical. Navigating these processes can be complex, but working with a trusted Employer of Record (EOR) in Japan makes it much easier.

An experienced EOR provider will ensure all permits are handled legally, so you can focus on building your team in Japan with confidence.

Work Permits for Foreign Employees in Japan

Foreign nationals who plan to work in Japan must obtain the appropriate work visa aligned with their role and qualifications. Since visa sponsorship is tied to a local employer, businesses expanding into Japan often face complex administrative and compliance requirements. Partnering with an Employer of Record streamlines this process by handling sponsorship, documentation, and compliance — allowing companies to onboard international talent seamlessly while focusing on business growth.

Types of Visas for Foreign Talent

There are several types of visas used to work or do business in Japan, including:

Each visa type has specific use cases, duration limits, and documentation requirements. If you’re looking to hire in Japan or send international staff temporarily, an EOR Japan solution helps you identify the right visa and manage the application process end-to-end.

Business Permits for Foreign Companies

To operate directly in Japan, foreign companies typically need to register a legal entity in Japan and apply for a business license. This can be a time-consuming process that includes office registration, investment approvals, and compliance with Japanese labor laws.

Alternatively, you can use an EOR in Japan to bypass the need for a local entity. The Japan employer of record is already registered and authorized to employ staff and manage payroll, contracts, and local compliance making it easier and faster to hire employees in Japan.

Why Visas & Permits Matter for Global Hiring

If you’re hiring foreign employees in Japan, or placing international staff in-country, it’s essential to stay compliant with immigration laws. The right employer of record service helps you:

Common Questions on EOR in Japan

What employment contracts are used under an EOR in Japan?

EORs in Japan typically issue standard Japanese employment contracts in compliance with labor law, which may be indefinite (permanent) or fixed-term. These contracts outline mandatory details such as salary, working hours, leave entitlements, and termination conditions, ensuring employees are fully protected under Japanese law.

Who manages the employee’s daily work if hired through an EOR?

While the EOR is the legal employer, the foreign company retains full control over the employee’s day-to-day responsibilities, performance management, and business objectives. The EOR handles administrative and legal compliance, enabling the company to focus on operational integration and productivity.

Is probationary employment allowed under an EOR in Japan?

Yes. Probationary periods are common in Japan, typically lasting between 3 to 6 months. During probation, employees still enjoy full statutory rights, though dismissal may be slightly more flexible if performance expectations are not met, provided proper procedures are followed.

How quickly can an EOR help me hire an employee in Japan?

Onboarding an employee in Japan through an Employer of Record is typically quite fast compared to setting up a local entity. In most cases, it can be completed within 2–4 weeks, depending on factors such as contract finalization, employee document submission, and enrollment in statutory benefits (social insurance and pension). If the employee is a foreign national requiring a work visa, the process will take longer, as visa approval timelines vary and can extend to several months.

What are the risks of hiring a contractor in Japan instead of using an EOR?

Businesses want to compare the two options. They ask about the legal risks of misclassifying a worker, which in Japan can lead to a presumption of an employment relationship, triggering a host of legal and financial obligations.