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Employ Candidates Compliantly in Japan

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  1. Overview: Japan
  2. Global PEO and payroll
  3. Global HR Compliance
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
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Global Employer of Record in Japan

Global employment services

Businesses in the process of expanding globally often face challenges when it comes to compliantly onboarding employees in foreign countries. In most cases, legal compliance requires the establishment of a legal in-country business entity, a complex, costly and time-consuming process that many employers are not ready to undertake.

To help your organization legally onboard and payroll a workforce in Japan, Acumen International offers a global employment solution via our Global Employer of Record (EOR) designed to help you circumvent the legalities of direct hiring, eliminating the need for you to establish a legal entity in Japan in order to conduct business there.

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Spotlight on Japan:

Japan is a country in Eastern Asia, located on an island chain between the North Pacific Ocean and the Sea of Japan, east of the Korean Peninsula. Japan is part of the Pacific Ring of Fire and comprises an archipelago of 6,852 islands covering 377,975 square kilometers; its five largest islands, from north to south, are Hokkaido, Honshu, Shikoku, Kyushu, and Okinawa. Major cities are the capital Tokyo, Yokohama, Osaka and Nagoya.

  • Capital: Tokyo
  • Population: 12.687.293 (July 2021).
  • Official language: Japanese. Employers are allowed to use English or any other language in employment contracts.
  • Local currency: Japanese yen (¥) (JPY).
  • Labor Force: 66.54 million (2020).
  • Industries: Even though Japan has some deposits of gold, magnesium, coal and silver, the country has very limited natural resources overall and, as a result, is highly dependent on imports to meet its raw material and energy needs. On the other hand, thanks to its large maritime area, the country is one of the world’s largest producers of fishing products. However, given that only 1/10 of Japan’s surface is suitable for cultivation, the agricultural sector is small in Japan. Tea and rice are the country’s two largest crops, though the sector as a whole is highly subsidised and protected. The industrial sector is highly diversified, manufacturing products ranging from basic goods (such as steel and paper) to sophisticated technology. Japan dominates the automobile, robotics, biotechnology, nanotechnology and renewable energy sectors. Japan is home to several of the world’s largest manufacturers of electronic products, which is why the country’s industrial sector is often associated with technological sophistication. The country is the world’s third largest producer of cars and the second largest producer of ships. Major services in Japan include banking, insurance, retailing, transportation and telecommunications. The country also has a significant tourism sector.
  • Import/Export partners: Scarce in critical natural resources, Japan has long been dependent on imported energy and raw materials – crude petroleum, natural gas, coal. The import commodities also are integrated circuits, broadcasting equipment. The main import partners are China, the United States, and Australia. Japan’s government sought to open the country’s economy to greater foreign competition and create new export opportunities for Japanese businesses. The key export partners are the United States, China, South Korea, and Taiwan. Export commodities include cars and vehicle parts, integrated circuits, personal appliances, ships.
  • Salary currency: Wages must be paid in Japanese yen. Payment in foreign currencies is not allowed.
  • Minimum wage: Minimum wage in Japan increased to 930 JPY/hour in 2021 from 902 JPY/hour in 2020. In the long-term, the Japan minimum hourly wage is projected to trend around 940.00 JPY/hour in 2022.
  • 13 / 14 salary: Extraordinary wages (such as long-service allowance) and bonuses (if any) must be paid pursuant to the employer’s work rules. Most companies carry on the old Japanese tradition of providing semiannual bonuses equal to one month’s salary. In job descriptions, this is often written as “monthly salary paid 14 times a year.

Employ your Selected Workforce in Japan via Acumen’s Employer of Record (EOR) Solution

As an Employer of Record services provider, Acumen International helps businesses to legally engage and pay their selected highly skilled professionals in Japan. Businesses desiring to hire local employees should be prepared to pay competitive salaries, to attract and retain the most qualified candidates.

As a global employment organization, Acumen International serves both end employers and service companies representing international clients.

Acumen’s Global employment services are designed to provide our clients with professional assistance to meet their global HR needs, such as:

  • Global talent acquisition and retention
  • Global expansion, to help you quickly enter new global markets without legal and HR compliance risks
  • Local support for international clients and their expat employees

Acumen’s Employer of Record (EOR) service in Japan offers an efficient and inexpensive alternative to direct hiring. Our solution gives companies the opportunity to operate in Japan, and in 190 international markets where we serve our clients, without registering as a local business entity.

Acumen International offers a global PEO and payroll solution to take care of all the details of payroll while ensuring full compliance with in-country labor and taxation laws. To get more information about Acumen’s Global PEO and payroll service in Japan click here.

Legally Onboard and Payroll your Employees in Japan with Acumen’s Global Employment Solution

Acumen’s EOR global employment solution helps businesses to overcome legal challenges by hiring and compensating your local and expat workforce in Japan on your behalf, in a risk-free and cost-effective manner.

Acumen’s Global Employer of Record (EOR) solution was designed to help international companies like yours expand your global reach and engage the brightest global talent for your projects.

If you are looking to reinforce your internal team with the expertise of local talent, or if you have already selected a local candidate to work for you remotely and in full legal compliance in Japan, our global EOR solution is the ideal choice for you.

In addition to legally onboarding local citizens, we are able to organize work permits and business visa sponsorship for your expatriate team via our Employer of Record, and employ them on your behalf, once legal permissions have been attained.

Partner with Acumen International, and let us help you handle your global employment and HR needs. With Acumen, you can rest assured that all legal requirements are met for compliant hiring and compensating of your local and expatriate employees in Japan, and in 190 countries worldwide where we serve our international clients.

You can trust Acumen to handle the global employment and HR details of your workforce management in Japan, to ensure full compliance with in-country employment laws. Reduce your risks while expanding your business, without establishing your own legal entity in Japan. Leave it to Acumen to hire and compensate your employees on your behalf, so you can focus on growing your business.

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