Hiring One Employee Is Not Enough

Hiring One Employee Is Not Enough

Hiring just one employee does not meet the requirements

In our previous article, we explained who qualifies as a “full-time employee” under the Business Manager Visa.

Is hiring just one person who qualifies as a full-time employee sufficient?

The answer is, not sufficient.

Under the Business Manager Visa, it is not just the fact that you have “hired” someone that matters—it is also important that the employment is conducted appropriately.

In this article, we’ll introduce four key points that foreign business owners should pay particular attention to.

1. Prepare a Notice of Employment Conditions and an Employment Contract

When hiring an employee, you must properly prepare a Notice of Employment Conditions and an Employment Contract to clearly specify the terms of employment.

For example, the following are important items required by law to be specified:

  • Job Description
  • Work Location
  • Working Hours
  • Salary
  • Days Off
  • Contract Term
  • Terms Regarding Resignation

“Since they’re an acquaintance, a verbal agreement is fine”

“I can draw it up later”

You should avoid thinking this way.

An employment contract is a vital document that protects both the company and the employee.

2. Complete Social Insurance and Labor Insurance Procedures

When hiring employees, you may need to complete procedures for social insurance and labor insurance.

The following types of insurance fall under social insurance and labor insurance:

  • Health Insurance
  • Employees’ Pension Insurance
  • Unemployment Insurance
  • Workers’ Compensation Insurance

Even foreign nationals working as employees in Japan must enroll in these programs if they meet the eligibility requirements.

If they meet the eligibility requirements, the procedures must be followed in the same manner as for Japanese employees.

These systems not only protect employees but also serve as important indicators that the company is being operated appropriately.

3. Paying Wages Appropriately

It is also important to ensure that the correct amount of wages is paid properly every month.

For example, you need to verify the following:

  • Whether wages are above the minimum wage
  • Whether overtime pay is being paid appropriately
  • Whether pay stubs are being provided
  • Whether the method of wage payment is appropriate

If you are actually employing someone, your wage payment records also serve as important documentation demonstrating the reality of that employment.

4. Actual Work Is Essential

For the Business Manager Visa, merely meeting formal requirements is not sufficient.

Simply drafting an employment contract, paying a salary, or having someone listed as an employee in name only will not be evaluated as a genuine employment relationship.

What is important is that the individual is actually working at the company and involved in its business operations.

It is required that “substance” accompany the “documentation”.

“Employment” Builds Trust in the Company

For foreign business owners, hiring employees is not merely about increasing the workforce.

Proper employment management leads to trust from employees, credibility with business partners, and the company’s growth.

And these cumulative efforts contribute to the sustainable operation of the business.

Summary

For the Business Manager Visa, it is not just “hiring one full-time employee” that matters.

With the Business Manager Visa, “hiring one full-time employee” is not the only important factor.

Stable business operations can only be achieved when there is a reality where that employee is actually working at the company.

  • Working under an appropriate employment contract,
  • enrolled in the necessary social insurance and labor insurance,
  • receiving fair wages,
  • and actually working at the company—

For foreign business owners, hiring is not the end goal.

Proper labor management—which begins at that point—is the foundation for the company’s long-term growth.

Professional Tip

Employment Is More Than Recruitment

For the Business Manager Visa, the mere fact of “hiring an employee” is not sufficient.

After hiring, numerous laws come into play.

  • Proper employment contracts
  • Clear specification of working conditions
  • Enrollment in social insurance and labor insurance
  • Payment of wages
  • Management of working hours

Administrative scriveners verify whether the company is operating appropriately from the perspective of residence status and business plans,

while certified social insurance and labor consultants verify this from the perspective of employment and labor management.

Hiring is not merely “employing people,” but also “creating an environment where people can work with peace of mind.”