Does an employment contract have to be written in Japanese?

This is a question we often receive from foreign business owners hiring employees in Japan for the first time.

“Does an employment contract have to be written in Japanese?”

This is a very natural question for business owners who cannot read Japanese.

Also, when hiring foreign employees, we often get asked,

“Is it okay to draft the contract in English only?”

To put it simply,

there is no rule under Japanese law that requires employment contracts to be written exclusively in Japanese.

However, in practice, that alone is not sufficient.

In this article, we’ll explain what foreign business owners need to know about the language used in employment contracts.

Legally, Japanese is not the only required language

Under Japanese labor law, there is no provision requiring employment contracts or notices of working conditions to be written exclusively in Japanese.

• English
• Chinese
• Vietnamese
• Nepali

In other words, drafting them in these languages is not prohibited in and of itself.

What’s important is

properly communicating the terms and conditions of employment that must be explicitly disclosed to employees.

Therefore, explaining these terms in a language the employee can understand is crucial.

Is an English-Only Contract Acceptable?

When foreign business owners hire foreign employees, some companies draft contracts in English only.

However, caution is advised.

For example,

• when hiring Japanese employees,
• when hiring employees who understand Japanese but not English,

In such cases, an employment contract written solely in English may prevent the employee from fully understanding its contents.

The fundamental premise of a contract is that both parties agree to its terms after fully understanding them.

Asking an employee to sign a document in a language they cannot read may lead to problems later on.

It is crucial that foreign employees “understand” the terms

Conversely, the same applies when hiring foreign employees.

For example,

if you hand them a contract written solely in Japanese andsay, “Please sign this,” they will not be able to understand the contents if they cannot read Japanese.

Signing a contract without understanding key terms such as salary, working hours, and days off is not in the best interest of either party.

Precisely because they are foreign employees,

“explaining the terms in a language they can understand”

is essential.

We recommend using a combination of “Japanese + English + other languages as needed”

For foreign business owners, we recommend

contracts that include both Japanese and English, with other languages added as needed.

For example,

• Japanese
• English

If you arrange them side by side or one above the other, it will be easier for both the company and the employee to verify the contents.

Additionally, having a Japanese version makes it easier to consult with experts such as social insurance and labor consultants, administrative scriveners, and lawyers.

It can also be utilized if you hire Japanese employees in the future.

Caution is Required with Translations

There are many English-language contract templates available online.

However, we do not recommend using them as-is.

The reasons are:

• They are not based on Japanese law
• The translations may not be accurate
• They may not comply with Japan’s obligation to disclose working conditions.

For example,

even if a document is titled “Employment Contract,” there are cases where it lacks the information required for a Japanese notice of working conditions.

It is risky to use such documents simply because they are written in English.

Contracts also serve as “evidence”

Contracts are not created solely for the purpose of hiring.

• Salary
• Working hours
• Job duties
• Contract Term

If differences in understanding arise regarding these matters later on, the contract becomes crucial evidence.

That is precisely why it is important to create a contract that anyone can understand.

Especially for foreign business owners with a Business Manager visa

Foreigners managing a company under the Business Manager status of residence may hire both Japanese and foreign employees in the future.

In such companies, preparing contracts that are easy for each party to understand leads to proper labor management.

Particularly under the current system, where hiring full-time employees is crucial, it is essential to avoid situations where, after hiring, an employee claims, “I didn’t understand the terms of the contract.”

Summary

In Japan, there is no law requiring employment contracts to be written solely in Japanese.

However,

“ensuring that employees understand the content”

is extremely important.

Explaining the terms to foreign employees in a language they understand and presenting the terms in Japanese to Japanese employees in a way they can understand is the first step toward building a relationship of trust.

Furthermore, for foreign business owners themselves, contracts written in both Japanese and English are a great help in protecting the company.

A contract is not merely a formality.

It is an important document that gives shape to a “shared commitment” that allows both the company and its employees to work with peace of mind.