Japan remains a vital market for international growth, with its robust consumer base, advanced technology sectors, and highly skilled workforce. However, navigating employment and compliance in Japan is complex—especially without a local legal entity. That’s where Access Financial’s EoR service in Japan provides a seamless, fully compliant solution.

What is an Employer of Record (EoR)?

An Employer of Record (EoR) formally employs your staff in Japan while allowing you to oversee their daily work. We take on responsibilities including:

• Employment contracts that comply with the Labour Standards Act
• Statutory registrations and social insurance enrolment
• Monthly payroll, tax and social contributions
• Immigration, visa applications and extensions
• Ongoing HR administration and compliance monitoring   

This allows you to hire and pay both local and expatriate employees without the need to establish a Japanese entity.

Key 2025 regulatory updates

Employment contracts & benefits

Contracts must outline salary (in ¥), working hours, notice and termination clauses, leave entitlements, and overtime rules under the Labour Standards Act.

Overtime & working hours

Standard work hours are 8 hours/day and 40 hours/week. Overtime is limited to 45 hours per month (up to 360 hours a year) and attracts premium pay up to 300% on holidays.

Minimum wage increases

As of April 2025, Japan’s average national minimum wage climbed to ¥1,054/hr, with Tokyo now at ¥1,163/hr, reflecting a 5.1% rise year-on-year.

Enhanced Social Insurance reporting

Employers must register new staff with health, pension, unemployment, and workers’ compensation insurance, and manage contributions accurately—now often through self service portals.

Visa & COE processing

Foreign hires require a Certificate of Eligibility (COE), followed by a work visa application (Engineer/Humanities, Skilled Worker, Highly Skilled Professional). EOR providers facilitate COE submission and visa handling.

Employment, payroll & compliance services

Employment contracts

We draft robust, legally compliant contracts in English or Japanese that reflect statutory requirements.

Statutory contributions

We ensure registration and monthly deductions for all required insurances—employer and employee share rates vary by city and salary bracket.

Payroll & Tax

Every month we process salaries, compute and deduct income tax (including local inhabitant tax) and contributions, issue payslips, and file returns.

Benefits support

We manage statutory leave entitlements: annual leave, maternity, sick, and family care provisions. Optional benefits such as health insurance can be administered as needed.

Immigration & visa management

We assist with every visa stage:

1. COE application via Japanese immigration
2. Work visa submission at Japanese embassies or consulates
3. Post-arrival residence card registration with the local Public Security Bureau  

Our service ensures dependents’ visas and renewals are handled efficiently and in accordance with regulations.

Why choose Access Financial’s EoR?

No Entity required

We employ staff via our own Japanese legal entity—no local incorporation needed.

Full Legal compliance

Our services adhere to Japan’s labour laws, employment standards, wage settings, and social insurance obligations.

Fast & accurate payroll

We manage all payroll aspects and social contributions on time each month.

Immigration expertise

We streamline COE, visa, and residence card processes to shorten hiring timelines and reduce dilution.

Centralised Global support

As part of a global EOR network spanning 60+ countries, we offer a consistent and scaled solution for multi-market hiring.

Onboarding and maintenance process

1. Initial briefing and role assessment
2. Issue compliant contract
3. Register employee with social insurance and tax authorities
4. Handle COE and visa applications
5. Onboard post-arrival with HR induction
6. Manage payroll, leave, benefits, and compliance
7. Arrange contract renewals or exit proceedings

Onboarding typically completes in 2-3 weeks, depending on visa processing and documentation timelines.

Who should use this service?

• Start-ups and tech firms entering the Japanese market quickly
• Businesses aiming for compliant market entry with minimal set-up hassle
• Recruitment agencies placing candidates
• Project teams requiring short- to mid-term staffing solutions
• Contractors wishing to work in Japan

Risks of hiring without an EoR

Engaging employees directly in Japan can result in:

• Payroll errors, overtime non-compliance, and underpayment of benefits
• Immigration mishaps, COE and visa processing delays
• Severe penalties and legal exposure due to improper contributions or contract formatting
• Complex termination procedures and associated legal liability

Access Financial mitigates all of these risks through robust, compliant employment management.

Ready to hire in Japan?

With evolving regulations—including wage increases, working hour reforms, and streamlined visa processes—Japan remains complex yet essential. Access Financial’s EoR service ensures your hiring is swift, secure, and fully compliant.

Contact our team to discuss how we can support your hiring in Japan.

Discover More – Download the Japan Guide