# Employment contract in Japan: what to check before you sign

URL: https://japanhow.com/work/rights/employment-contract-japan-foreigners/
Author: JapanHow editors
Updated: Oct 28, 2026

## Summary

As of October 2026, Japanese law requires your employer to state wages, hours and other conditions when you sign, and you can cancel at once if the real conditions differ. Fixed-term contracts are capped at 3 years in general, and after 5 years in total with one employer you can apply for an open-ended contract. Penalty-for-quitting clauses, forced savings and loan deductions are banned. Employers should explain in a language you understand, and confirm your visa allows the job.

## Key facts

- Fixed-term cap: 3 years (5 in some cases)
- Open-ended switch: After 5 years total, you apply
- Dismissal notice: 30 days or pay instead
- Cancel if conditions differ: Immediately

**An employment contract in Japan** must state your wages, hours and other conditions when you sign, and you can **cancel at once** if the real conditions differ from what you were told. A fixed-term contract is generally capped at **3 years**, and after **5 years in total** with one employer you can apply for an open-ended contract. All as of October 2026.

This page is a pre-signing checklist, not legal advice. For overtime pay and the full list of items that must be in writing, see [your rights as a foreign worker](/work/rights/labor-rights-foreign-workers-japan/). For your own contract, ask a lawyer (弁護士), a labor and social security attorney (社会保険労務士) or the hotlines below.

## Is the contract open-ended or fixed-term?

This decides how easy it is to keep your job, so check it first.

| Type | What the law says |
|---|---|
| Open-ended (期間の定めのない) | No cap on length. A dismissal without an objectively reasonable ground that society accepts is invalid |
| Fixed-term (有期) | Generally up to 3 years; up to 5 years for workers with advanced expertise set by the labor minister, and for workers aged 60 or over |

The Labor Contract Act adds that an employer can't end a fixed-term contract early except for unavoidable reasons. When your fixed-term contracts with the same employer add up to **more than 5 years**, you can apply, before the current contract ends, for an open-ended contract. The employer is treated as having accepted, and your conditions stay the same except the term unless the rules say otherwise.

### What must a fixed-term contract say about renewals?

Since April 2024, at signing and every renewal, the employer must state whether there is a renewal cap (a total period or number of renewals) and what it is. If an employer adds or shortens a cap after your first contract, it must explain why beforehand. At the renewal where the 5-year right arises, the employer must also tell you that you can apply to convert, and what your conditions would be.

**Check these three lines:** Look for the contract term, any renewal cap, and the range of places and duties you could be moved to. Since April 2024 the renewal cap and the range of places and duties must be stated too.

## What should I check before I sign?

- **Wages.** How they are decided, calculated and paid, the cutoff day and payday. The labor ministry asks employers to explain tax, insurance premiums and agreed deductions so you know your actual take-home amount. See [take-home pay in Japan](/money/tax/take-home-pay-japan/) and [the minimum wage](/work/rights/minimum-wage-japan/).
- **Hours and days off.** Start and end times, breaks, overtime and leave. See [paid leave in Japan](/work/rights/paid-leave-japan/).
- **Work rules (就業規則).** An employer with 10 or more workers regularly must have them and file them with the labor standards authority. Employers must make them available to workers, for example by posting or handing them out. Ask to read them.
- **Resignation and dismissal.** How to resign and what grounds for dismissal apply. The law requires 30 days' notice of dismissal, or 30 days' average wages instead, with exceptions such as disasters or a worker's own fault. How to leave a job is in [quitting a job in Japan](/work/jobs/quitting-job-japan-visa/).
- **Place and duties.** The location and work you start with, and how far they can change.

## Which contract clauses are illegal in Japan?

The Labor Standards Act bans these whatever your nationality:

- **Penalties or pre-set damages** for breaking the contract, such as a fee for leaving early.
- **Offsetting a loan or advance** given on condition that you work against your wages.
- **Compulsory savings** tied to the contract, where the employer manages your savings.
- **Nationality-based treatment.** Employers must not treat you differently on wages, hours or other conditions because of your nationality.

If you have signed one of these, the clause is a reason to ask the hotlines below. Don't just assume it is valid.

## Does my contract match my visa?

Your status of residence (在留資格) limits the work you may do. The labor ministry's guidelines say employers should confirm before hiring that the job is allowed under your status, and should not hire you if it isn't. People with a status based on family or standing, such as permanent resident (永住者), have no limit on the activity.

If your duties will differ from your visa, ask the employer to clear it with the immigration bureau first. See [changing jobs on a work visa](/visa/visas/changing-jobs-visa-japan/). We have not covered probation periods or non-compete clauses here because we found no official source.

## Does the contract need to be in my language?

No rule we found requires an English contract. The guidelines ask employers to:

- give you a written statement of main conditions (fax or email only if you ask for it and can print it);
- use model notices or explain in your native language or plain Japanese so you understand;
- explain labor and social insurance at hiring, using multilingual government materials.

Ask for these explanations before you sign, and keep a copy of what you signed.

## What happens if the job isn't what the contract said?

If the conditions stated at signing differ from the real ones, you may cancel immediately. If you changed your address for the job and go back within 14 days, the employer must pay the necessary travel costs. On leaving, you can ask for a certificate of employment (退職証明書) covering your period of employment, duties, position, wages and the reason, and the employer must issue it promptly. Money owed must be paid within 7 days of your request.

The guidelines add that employers shouldn't hold your passport or residence card, and should not dismiss or refuse a renewal (雇止め) lightly.

## Where can I get help in my language?

| Service | Contact | Hours |
|---|---|---|
| Telephone Consultation Service for Foreign Workers | English 0570-001-701 | Weekdays 10:00 to 15:00, closed noon to 13:00; call charges apply |
| Labour Standards Advice Hotline (労働条件相談ほっとライン) | English 0120-531-401, free | Weekdays 17:00 to 22:00; weekends and holidays 9:00 to 21:00 |
| In-person counters for foreign workers | Labour bureaus and some inspection offices, e.g. Tokyo 03-5361-8728 | 9:30 to 16:30 |

Both phone services close from 29 December to 3 January. Other languages are listed on the ministry page, and days vary.

## More guides

[Your rights as a foreign worker](/work/rights/labor-rights-foreign-workers-japan/) · [Quitting a job in Japan](/work/jobs/quitting-job-japan-visa/) · [Labor unions](/work/rights/labor-union-foreign-workers-japan/) · [Workplace harassment](/work/rights/workplace-harassment-japan-foreigners/) · [Changing jobs on a work visa](/visa/visas/changing-jobs-visa-japan/)

## Questions people ask

### Does my employment contract in Japan have to be in writing?

Your employer must state wages, hours and other conditions when you sign, and the main items must be given in writing. The labor ministry's guidelines say fax or email is allowed only if you want it and can print it. The Labor Contract Act also says both sides should confirm the contract in writing as far as possible.

### How long can a fixed-term contract be in Japan?

Generally up to 3 years. The cap is 5 years for workers with advanced expertise as set by the labor minister, and for workers aged 60 or over. Open-ended contracts have no cap.

### Can my employer fine me for quitting early?

No. The Labor Standards Act bans setting a penalty or pre-set damages for breaking the contract. It also bans deducting a loan or advance given on condition of work from your wages.

### Can I sign a contract that is only in Japanese?

The law doesn't say the contract must be in English. The labor ministry's guidelines ask employers to explain conditions in your native language or plain Japanese. You can ask for the explanation and for sample documents before signing.

### What if the job differs from the contract?

If the working conditions stated at signing differ from the real ones, you can cancel the contract immediately. If you moved home for the job and return within 14 days, the employer must pay your necessary travel costs.

## Sources

- [労働基準法 (Labor Standards Act)](https://laws.e-gov.go.jp/law/322AC0000000049), e-Gov Law Search (Digital Agency) (accessed Oct 28, 2026)
- [労働契約法 (Labor Contract Act)](https://laws.e-gov.go.jp/law/419AC0000000128), e-Gov Law Search (Digital Agency) (accessed Oct 28, 2026)
- [2024年４月から労働条件明示のルールが変わります](https://www.mhlw.go.jp/content/11200000/001298245.pdf), Ministry of Health, Labour and Welfare (厚生労働省) (accessed Oct 28, 2026)
- [外国人労働者の雇用管理の改善等に関して事業主が適切に対処するための指針](https://www.mhlw.go.jp/content/000601382.pdf), Ministry of Health, Labour and Welfare (厚生労働省) (accessed Oct 28, 2026)
- [Telephone Consultation Service for Foreign Workers / Labour Standards Advice Hotline](https://www.check-roudou.mhlw.go.jp/soudan/foreigner_eng.html), Ministry of Health, Labour and Welfare (厚生労働省) (accessed Oct 28, 2026)