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Whistleblowing in Japan

Data privacy in Japan

Equal treatment for temporary agency workers in Japan

Anti-discrimination law in Japan

Equal pay for equal work in Japan

Protect your business with our compliance expertise

Employee protection legislation in Japan

As an employer in Japan, you need to understand and adhere to various labour laws and regulations to protect your business and your employees. This way, you can avoid legal issues while keeping your operations running smoothly.

In this guide, we will provide everything you need to know about employee protection legislation, including whistleblowing protections, data privacy, equal treatment for agency workers, anti-discrimination laws, and more.

Labour laws protecting workers in Japan

Employers in Japan are mandated to follow different regulations, including but not limited to working hours, wages, employment contracts, and workplace safety. Above all, this ensures safe working conditions and protects workers. Some key legislations include:

Labour Standards Act: This law mandates basic working conditions such as minimum wage, maximum working hours, safety standards, and overtime regulations.
Act on Securing, etc. of Equal Opportunity and Treatment between Men and Women in Employment: This act focuses on protecting gender equality, such as equality in hiring, promotions, and protection against maternity discrimination.
Industrial Safety and Health Act: It ensures the health and safety of workers in the workspace by setting safety requirements for machinery, prevention of hazards, and health checkups.
Childcare and Family Care Leave Act: This law provides employees with rights to take leave for childcare and family care without fearing job loss or discrimination.
Workers’ Accident Compensation Insurance Act: This act covers workers’ compensation, providing financial compensation and support in the event of injuries, diseases, or death caused by job-related reasons.
Employment Measures Act: This focuses on the stable employment of citizens, including support for job seekers and vocational training assistance.
Minimum Wages Act: This ensures that all workers receive at least the minimum wage set by regulations.

Whistleblowing in Japan

The Whistleblower Protection Act was initially enacted in 2004 to protect workers who report illegal or harmful activities by their employers or public entities. Its main goal is to protect whistleblowers from retaliation, such as dismissal or unfavourable treatment, due to their disclosure of information. Any dismissals related to whistleblowing are considered invalid, and disadvantageous treatment is prohibited.

Japan’s Whistleblower Protection Act

In 2020, the Act underwent important updates, which took effect on June 1, 2022. Here are the key changes:

Expanded scope of protection: The law now protects whistleblowers who report not only violations of laws and regulations, but also acts that threaten public interests or safety, including environmental issues.
Obligation for companies: Companies are now required to establish and promote internal reporting systems to ensure employees have safe channels to report misconduct.
Awareness and training for employees: Organisations are encouraged to provide training and raise awareness among employees about whistleblower rights and protections.
Protection for external whistleblowers: The Act extends protections to individuals who report misconduct to external authorities, not just internal channels.

For companies with over 300 employees, there is a new requirement to appoint a designated contact person for whistleblower reports and create a supportive system for handling complaints. These changes aim to foster a safer environment for employees to express their concerns without fear.

Data privacy in Japan

The Act on the Protection of Personal Information (APPI) is the main legislation governing data protection in Japan. APPI outlines the requirements for the handling, use, and protection of personal information.

In the workplace, the APPI has provisions that impact how employers handle employees’ personal information. Employers must adhere to the principles of the APPI when collecting, using, and managing personal data of their employees. This includes obtaining consent from employees for the processing of their personal data, implementing measures to safeguard personal information, and ensuring the accuracy of the data collected.

Data privacy policy in Japan

Under the APPI, employers are mandated to provide a clear purpose for the collection of personal information and limit its use to that scope. They are also required to take appropriate security measures to prevent leaks, loss, or damage to personal information. This means that employers should limit access to personal data to authorised persons and ensure that personal information is handled in a manner that respects privacy rights.

Data privacy regulation in Japan

As an employer, you should be aware of the important aspects of the APPI and establish internal policies for data protection and privacy of employees. Some practices you can implement are:

Establishing data security measures: Implement appropriate security measures to protect personal information from unauthorised access, leaks, or breaches. This includes both technical measures (like encryption) and organisational policies.
Understanding the rights of individuals: Be aware that individuals have rights regarding their personal data, including the right to access, correct, or request the deletion of their information.
Handling data breaches: Have a clear protocol in place for responding to data breaches, including notifying affected individuals and relevant authorities as required by law.
Understanding data transfer regulations: If transferring personal data outside Japan, employers must ensure that the receiving country has adequate data protection measures in place or obtain additional consent from the individuals involved.
Conducting employee training: Regularly train employees on data privacy policies and practices to ensure compliance and promote a culture of data protection within the organisation.

Equal treatment for temporary agency workers in Japan

Temporary agency workers should receive treatment comparable to regular employees in terms of wages, working conditions, and other employment benefits, provided they perform the same work.

The Worker Dispatching Act governs the dispatch of workers by temporary staffing agencies and protects the rights of temporary agency workers. To prevent wage discrimination, the act ensures that the pay for temporary agency workers is not significantly lower than that of permanent employees doing the same job.

The Act has undergone several amendments to adapt to changing economic conditions, employment situations, and labour policies in Japan. These revisions have addressed regulations regarding the types of jobs in which temporary agency workers can be employed, employment periods, and more, to ensure the protection and fair treatment of temporary workers.

For instance, to ensure equal pay for equal work between regular workers (permanent and full-time employees) and temporary agency workers, including fixed-term and part-time employees, amendments to related legislation became effective on April 1, 2020.

Employers should also keep in mind the following principles under the Act:

Employment conditions: Temporary agency workers should have access to the same working conditions, such as working hours, breaks, and benefits (like bonuses and training opportunities), as their permanent counterparts.
Employment stability: The law encourages agencies to provide stable employment opportunities and prevents the frequent switching of workers among different assignments without proper justification.
Transparency and information: Agencies are required to inform temporary workers about their rights, including conditions of employment and the criteria for equal treatment.

Anti-discrimination law in Japan

Does Japan have anti-discrimination laws?

Yes, Japan has anti-discrimination laws that provide various protections for workers. The Labour Standards Act prohibits discrimination regarding wages, working hours, or working conditions based on nationality, creed, or social status.

This Act also mandates that employers must not engage in discriminatory treatment between men and women concerning wages. Moreover, Japan has strengthened its protection against workplace harassment, addressing issues such as sexual harassment and “power harassment” (pawahara), with new legal measures that became effective on June 1, 2020, for larger employers and will apply within three years for smaller organisations.

Labour laws prohibiting discrimination in Japan

Aside from the Labour Standard Acts, there are various laws in place to combat discrimination in the workplace and ensure fair treatment and equal opportunities for all workers. Here are the key labour laws you need to keep in mind:

Equal Employment Opportunity Act: This prohibits discrimination against employees based on gender in hiring, promotion, training, job assignments, wages, and other employment conditions. Employers are required to treat male and female employees equally, especially when they perform similar roles. This includes equal pay for equal work.
Act on the Elimination of Discrimination against Persons with Disabilities: The Act prohibits discrimination in various areas, including employment, education, and access to services. Employers must treat individuals with disabilities fairly and without bias. Employers are required to make reasonable accommodations for employees with disabilities to help them perform their jobs effectively. This can include adjustments to the work environment or job duties.
Employment Measures Act: The Act generally prohibits discrimination based on age when it comes to hiring employees. Employers are expected to provide equal opportunities regardless of an applicant’s age. While the Act prohibits age discrimination, there are certain exceptions. For instance, age limits may be set for specific positions or roles where age is a legitimate requirement, such as jobs that demand a certain level of physical fitness.
Child Care and Nursing Care Act: The Act explicitly prohibits discrimination against employees who apply for or take childcare or nursing care leave. This means that individuals cannot be treated unfairly or face negative consequences for utilising their rights under the Act. Employees taking leave for childcare or nursing care cannot be dismissed or subjected to unfavourable treatment regarding promotions, salary, or other employment conditions because of their leave.

Protection against harassment in Japan

The Equal Employment Opportunity Act (EEOA) in Japan addresses harassment in the workplace, particularly sexual harassment. It explicitly prohibits sexual harassment in the workplace, defining it as any unwanted behaviour of a sexual nature that creates an uncomfortable work environment.

Employers are required to take proactive measures to prevent sexual harassment. This includes establishing clear policies, providing training to employees, and creating a safe environment for reporting incidents. The Act also encourages companies to set up procedures for employees to report harassment without fear of retaliation. Employees should have access to confidential and effective complaint mechanisms.

If employers fail to address or prevent harassment in the workplace, they may face legal consequences, including liability for damages if an employee suffers harm due to harassment.

Moreover, a recent change to the Equal Opportunity Act, which took effect in June 2020, strengthens these requirements. Now, employers must also work with other companies when one of their employees harasses someone at a different company. This cooperation helps improve how both companies handle such situations and aims to prevent future harassment between employees of different organisations.

Equal pay for equal work in Japan

Is there an equal pay law in Japan?

Yes, Japan has implemented laws to ensure equal pay across various types of employment. The amendments to the Part-Time/Fixed-Term Employment Act and the Worker Dispatch Act, which came into effect in April 2020, introduced requirements for workers to receive fair and equal treatment, irrespective of their job status. These reforms eliminate disparities between regular and non-regular workers (part-time, fixed-term, and dispatched workers) in terms of wages and working conditions.

Japan’s equal pay law

The reforms to the Part-time/Fixed-term Employment Act focus on ensuring that part-time and fixed-term workers receive pay and benefits similar to full-time employees doing the same job. Employers must clearly explain how they determine pay and working conditions.

These reforms also promote equal access to training, promotions, and other career development opportunities for part-time and fixed-term workers.

For part-time and fixed-term workers, employers cannot set their base salary, bonuses, or benefits in a way that creates unreasonable gaps compared to regular employees. What counts as “reasonable” depends on:

The nature of the tasks and the level of responsibility involved.
How much the duties and positions might change.
Other relevant factors that make sense for the situation.

Employers are not allowed to discriminate against part-time or fixed-term employees in terms of their job duties or positions just because of their employment status.

On the other hand, the reforms in the Worker Dispatch Act ensure that dispatched workers (temporary workers sent to client companies) get equal pay and working conditions compared to regular employees doing similar jobs.

These reforms also encourage companies to hire dispatched workers directly when they can, which helps improve job security and stability. Employers are required to clearly share information about the rights and benefits available to dispatched workers for them to understand what they’re entitled to.

Protect your business with our compliance expertise

Understanding what you can and can’t do as an employer is one of the biggest challenges of hiring in Japan. Get it wrong, and you could face legal action and damage to your reputation.

Our solutions protect both you and your workers, thanks to our team’s in-depth knowledge of local and international labour laws. That means you can stop worrying about compliance issues and focus on what you do best: growing your business.

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FAQ's

What are the key employee protection laws in Japan?

The key employee protection laws in Japan include the Labour Standards Act, Labour Contract Act, Industrial Safety and Health Act, Equal Employment Opportunity Act and laws protecting part-time, fixed-term and agency workers.

The main laws include:

Labour Standards Act: Covers wages, working hours, overtime, breaks, holidays, annual leave and dismissal notice.

Labour Contract Act: Sets rules for employment contracts, changes to working conditions and dismissal.

Industrial Safety and Health Act: Requires employers to protect employees’ health and safety at work.

Equal Employment Opportunity Act: Protects employees against sex discrimination and includes protections relating to pregnancy, childbirth and sexual harassment.

Part-Time and Fixed-Term Employment Act:Protects part-time and fixed-term employees against unreasonable differences in working conditions.

Worker Dispatching Act: Regulates agency and dispatched workers and sets responsibilities for staffing agencies and client companies.

Act on the Protection of Personal Information: Sets rules for how employers collect, use and protect employees’ personal data.

Whistleblower Protection Act: Protects eligible workers who report certain legal violations.

Other protections also apply in areas such as disability discrimination, childcare and family care leave. The Labour Policies Comprehensive Promotion Act also requires employers to take measures to prevent workplace power harassment.

What whistleblower protections apply in Japan?

The whistleblower act in Japan protects people who report certain legal breaches that affect the public interest. This can include employees, former employees whose employment ended within the previous year , for certain reports, company officers.

A protected report can be made through an internal channel, to the relevant authority or, in limited situations, outside the company. The concern must relate to a reportable legal breach, rather than a general disagreement about how a manager has handled a workplace issue. The conditions for protection differ according to the reporting channel, and external public disclosures are subject to stricter requirements.

A protected report cannot lead to dismissal or other unfair treatment under the Whistleblower Protection Act. Companies with more than 300 employees must have an internal reporting system and appoint people to handle reports. Smaller companies are expected to make reasonable efforts to put similar arrangements in place.

A reporting route needs to be more than an email address. Employees need to know who sees the report, how their identity is protected and what happens after they raise a concern.

What anti-discrimination and equal employment protections apply in Japan?

The Equal Employment Opportunity Act in Japan is one of the main rules protecting employees from sex-based discrimination. It covers recruitment, job assignments, promotion, training and other employment decisions. It also requires employers to prevent sexual harassment and unfair treatment linked to pregnancy or childbirth.

Other laws deal with different forms of unequal treatment. The Labour Standards Act protects employees against discrimination in pay and working conditions because of nationality, creed or social status. It also bans different wages for men and women because of sex.

Employees with disabilities are protected against discrimination and may need reasonable adjustments to help them do their job. Private-sector employers are required to provide reasonable accommodation unless doing so would impose a disproportionate or undue burden Employees using childcare or family-care leave are also protected from being treated badly because they take that leave.

Japan does not have one simple rule covering every possible form of discrimination. The answer depends on the reason for the treatment and the employee’s circumstances. Fair hiring criteria, documented decisions and a clear complaint process make it easier to spot and address problems before they become disputes.

What employee privacy and monitoring rules apply in Japan?

Employers in Japan can monitor workplace systems and process employee data, but they must follow the Act on the Protection of Personal Information (APPI).

Employers must explain why they collect employee personal data and generally use it only for that purpose. They must also take appropriate steps to protect the information from loss, unauthorised access or disclosure. If the employer wants to use the data for a purpose beyond the previously identified scope, it will generally need the employee’s consent unless a statutory exception applies.

Workplace monitoring can include company email, internet use, computers, CCTV and other company systems. Employers should have a legitimate reason for monitoring, such as security, workplace safety or protecting confidential information, and employees should generally be informed about what is monitored and why.

Additional requirements apply to sensitive information, including certain health and medical data. This may constitute special care-required personal information, for which prior consent is generally required at the collection stage unless an APPI exception applies. Employers also need to follow APPI rules when sharing employee information with third parties or transferring personal data outside Japan.

Monitoring and data-handling practices should be documented in the company’s privacy notices, workplace rules or internal policies.

What pay equity and equal pay protections apply in Japan?

Japan prohibits pay discrimination based on sex and requires fair treatment of part-time and fixed-term employees compared with regular employees doing comparable work.

Under the Labour Standards Act, employers cannot discriminate between men and women in wages because of sex. The Part-Time and Fixed-Term Employment Actalso prohibits unreasonable differences in treatment between regular employees and part-time or fixed-term employees.

This can cover basic salary, bonuses, allowances, training, holidays and employee benefits.

Whether a difference is permitted depends on factors such as the employee’s duties, level of responsibility and whether their role or work location can change. Employers should be able to explain why employees doing comparable work receive different pay or benefits. If requested by a part-time or fixed-term employee, the employer must explain the content of and reasons for differences in treatment and must not subject the employee to disadvantage for requesting that explanation.

Agency workers have separate protections under the Worker Dispatching Act, including rules intended to ensure fair treatment compared with employees performing similar work at the client company.

How are temporary, agency and non-standard workers protected in Japan?

Temporary, agency, part-time and fixed-term workers are protected by much of the same labour law in Japan as permanent employees. Their contract type does not remove basic rights to pay, working-time limits, workplace safety, annual leave or social insurance where they meet the eligibility rules.

Part-time and fixed-term employees must not receive unreasonable treatment compared with regular employees doing similar work. They can ask why their pay or benefits differ, and the employer needs to give a clear explanation.

A fixed-term employee may gain the right to move to an indefinite-term contract after more than five years of successive contracts with the same employer. Employers also need to take care when deciding not to renew a contract, especially where the worker has been renewed several times.

Agency workers are employed by the staffing agency but work at the client’s site. The agency and client company have different responsibilities for pay, information and workplace safety. The safest approach is to manage each worker according to the reality of their role, rather than if a non-standard contract means fewer obligations.

What is the disability employment quota in Japan?

Japan’s disability employment quota requires many private employers to employ a minimum proportion of people with disabilities. Since 1 July 2026, the required rate has been 2.70% of the company’s regular workforce.

The quota generally applies once a company has at least 37.5 regularly employed workers. In practical terms, a business at that size will usually need to employ at least one qualifying employee with a disability. The calculation has detailed rules for part-time work, working hours and how some employees are counted.

Companies that fall within the reporting rules need to submit information about their disability employment. Larger employers that do not meet the quota may have to pay a levy, while employers that meet or exceed it can access financial support in some cases. The levy generally applies to employers with more than 100 regularly employed workers, subject to the statutory calculation rules.

The quota is only one part of the picture. Employee protection laws in Japan also prohibit disability discrimination and require reasonable accommodation, such as adjusted equipment, work patterns or communication methods. Meeting the numerical quota does not remove these separate non-discrimination and accommodation duties.

What is the stress check obligation for employers in Japan?

The stress-check system is a workplace mental-health requirement under labour law in Japan. It is intended to help employees recognise high stress early and help employers identify patterns in the workplace that may need attention.

Workplaces with 50 or more regular employees must conduct a stress check at least once a year. Employees can decide whether to take part. They cannot be treated unfavourably for refusing to participate. Their individual results go to them, and the employer cannot see those results unless the employee agrees.

If an employee is identified as having high stress and asks for support, the employer must arrange a doctor’s interview. The business then needs to consider whether changes are needed, while keeping the employee’s information private.

The results can also be looked at in groups to spot wider issues, such as workload or poor team relationships. From 1 April 2028, smaller workplaces will also need to run stress checks.

The point is to improve working conditions, not to judge an employee’s performance or resilience.

What is power harassment (パワーハラスメント) in Japan and what must employers do?

Power harassment in Japan is workplace behaviour that uses a position of authority or influence, goes beyond what is necessary for the job and harms an employee’s working environment. Employers are required to take measures to prevent and address it. All three elements must be present: conduct based on a superior relationship, conduct exceeding what is necessary and reasonable for work, and harm to the working environment.

Power harassment can include physical or verbal abuse, intimidation, isolation or exclusion, excessive work demands, deliberately giving someone too little work, and inappropriate intrusion into an employee’s private life.

Under Japan’s Labour Policies Comprehensive Promotion Act, employers must have measures in place to address workplace power harassment. This includes setting a policy that prohibits it, providing employees with a way to report concerns, responding promptly to complaints and taking appropriate action when harassment occurs.

Employers must also protect employees from unfair treatment or retaliation because they reported harassment or cooperated with an investigation. Reasonable instructions, performance management and constructive feedback are not automatically considered power harassment.

Why should companies partner with CXC to ensure employee protection compliance in Japan?

CXC helps companies meet employee protection requirements in Japan by providing local support across employment practices, workplace policies and day-to-day HR administration.

Through our Employer of Record service in Japan, we support areas including employment contracts, payroll, statutory benefits, leave and employee records. We can also help businesses apply local requirements around workplace harassment, employee privacy, equal treatment and fixed-term workers.

This is particularly useful for international companies applying global HR policies in Japan. Local requirements may affect how policies are written and how employee matters such as complaints, leave requests or workplace issues are handled.

With more than 30 years of workforce management experience, CXC supports global and enterprise companies managing employees across Japan and other international markets.

Speak to our team to learn more about employee protection compliance in Japan with CXC.

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