[Key Points and Precautions Foreign Nationals and Companies Should Know] What Is a “Specific Skills” Employment Contract?
Interest in the “Specific Skills System” is growing among foreign nationals who wish to work in Japan, foreign residents considering naturalization or permanent residency, and Japanese companies seeking to address labor shortages. A crucial step in the hiring process is the signing of an “employment contract.” This article explains the importance of contracts under the Specific Skills system and offers tips for preventing disputes.
Benefits of the Specified Skilled Worker Program and Employment Contract Basics
For foreign nationals considering relocation to Japan or future naturalization, the Specified Skilled Worker visa offers a significant opportunity for stable, long-term employment. The “employment contract” signed with the company is a fundamental prerequisite for obtaining this visa and living in Japan with peace of mind.
Under the Specified Skilled Worker Program, the law mandates that compensation be “equal to or higher than that of Japanese nationals,” creating a system that protects foreign nationals from unfairly low wages. Before signing, you must verify that the contract clearly specifies the breakdown of your salary, working hours, days off, bonuses, and whether a retirement allowance is provided.
You also have the right to receive a contract from the company that includes a translation in your native language or a language you fully understand (such as English). Signing the contract only after you fully understand and agree with its contents is the first step toward a solid career and a stable future life in Japan.
Rules for Drafting the “Specific Skills Employment Contract”
For Japanese companies seeking to secure talented foreign workers,
utilizing the Specific Skills system is a viable option; however, there are strict rules governing the drafting of the “Employment Contract.”
To pass the review by the Immigration Bureau, the terms must be accurately stated in accordance with the prescribed format. Particular attention must be paid to objectively proving the aforementioned “remuneration equivalent to or higher than that of Japanese nationals.” A reasonable amount must be set by comparing it to the wage regulations for Japanese employees performing the same duties.
In addition, provisions regarding overtime, paid leave, and the company’s responsibility for travel expenses upon return to the home country must also be included. If the contract contains any omissions or legal violations, not only will the visa application be denied, but the company may also be deemed to have engaged in misconduct, risking the inability to hire foreign workers in the future.
Follow-Up at the Time of Contract Signing and After Joining the Company
To ensure the success of Specific Skilled Worker employment and to pave the way for long-term employment with a view toward future naturalization or permanent residency, thorough communication at the time of contract signing and after the employee joins the company is essential. To prevent mismatches—such as the foreign worker feeling that “this wasn’t what I expected”—caused by language or cultural barriers, the company has an obligation to carefully explain the contents of the employment contract to the foreign worker.
Specifically, it is important to clearly specify in advance the deductions from the total gross pay—such as taxes, social insurance premiums, and rent—so that the employee accurately understands how much they will actually take home. Foreign employees, for their part, should not hesitate to ask questions if they have any concerns and ensure these are resolved.
Furthermore, under Specific Skilled Worker Category 1, mandatory support through registered support organizations is required, so regular meetings regarding both daily life and work must be conducted. This allows both parties to confirm that the working environment remains in accordance with the contract, thereby building a relationship of trust.
Summary
The key to successfully hiring foreign workers under the Specified Skilled Worker system is the execution of a lawful and transparent “Specified Skilled Worker Employment Contract.” For foreign workers, it serves as the foundation for a secure life in Japan and for future aspirations such as naturalization; for companies, it is a crucial guide for welcoming talented workers while avoiding legal risks.
