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Employ Candidates Compliantly in Japan

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  1. Overview: Japan
  2. Work permit for hiring expats via PEO
  3. Global PEO and payroll
  4. Global HR Compliance
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
  7. Global Payroll Calculator
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Are you looking to engage and pay offshore IT developers in Japan?

Find out how you can decide whether you should engage and pay employees or independent contractors using our free ‘Employee vs. Independent Contractor’ Checklist.

Designed to be used by companies engaging remote workforce in Japan, the checklist is the best way to define why and in what cases companies should onboard new hires or convert existing contractors/freelancers into employees without missing any crucial aspects.

The Strategic Advantage of Employing Top-Tier International Experts

How do you engage a Japan-based workforce without opening or while liquidating your own legal entity company in Japan? 

  • How do you attract high-calibre global talent to augment your in-house team while saving costs compared to hiring inside the home country?
  • How do we onboard key minds immediately without delaying a hire date?
  • How do you retain the best people and become an enticing employer even if you are not Google?

Employee Misclassification in Japan

Japan has adjusted the Labor Law in recent years. The Japanese Labor Standards Act states that an employee is as an individual who is employed at a company/firm/business. The individual receives salaries from the firm, regardless of the nature of work (ref. to Article 9 of the Act). There is a test in Japan that helps determine whether a person is an employee or a contractor. The test is backed up by a similar concept of the U.S. government while figuring out who is who in an employer/employee relationship. However, the Administrative Court in Japan may also consider the nature and the size of salaries when distinguishing an employee from an independent contractor. At Acumen International, we help you handle all of these challenges. We can onboard and pay your foreign professionals on your behalf in 190+ countries with 100% legal compliance. When competing in the war for sought-after talent, you often wonder… 

  • Is engaging and paying international staff on my own entities in Japan prudent? Is it realistic for my current goals and future opportunities?
  • Or is engaging freelancers a good fit for my company?

Finding the answers doesn’t have to be complicated or time-consuming.


 

What Our Clients Are Saying?

I want to share my experience dealing with Acumen International company.

Speed & responsiveness: Very prompt in response to my first enquiry about converting contractors into employees to follow-up questions.

Completeness of information: I like how detailed the estimates and the transparency make us feel more confident in knowing where the money goes.

Overall experience: I am pleased and impressed with how fast they respond to my enquiries. We can trust the company to employ the contractors we want to keep.

Quah Shen Dee,
People Success Officer

I always found Acumen International very supportive, professional and helpful. They pay salary on time and are always ready to sort out any issues.

I must admit I truly enjoy my time as an Acumen International employee and feel like they care about me as an individual. I have my own dedicated manager that provides me with detailed explanations when it’s needed. Payments are always prompt and the entire team does its best to respond to any of my questions.

I highly recommend Acumen International to anyone who requires their services.

Andrew Yanchurevich,
COO


The Top 5 Reasons to Convert Japanese
FREELANCERS into FULL-TIME EMPLOYEES

We’ve recently noticed an uptick in IT companies’ desire to hire the brightest minds and eliminate the risks of independent contractor misclassification in Japan and all over the world. But with more and more companies competing for these contractors, the more they are shying away from converting their existing freelancers & independent contractors into full-time employees.

Here’s a Litigation You Definitely Would Want to Avoid in Japan

One American company was working on a full-time basis with a Slovakian IT freelancer for approximately three years. The American HR director contacted Acumen International to employ this freelancer to eliminate the risk of employee/ independent IT contractor misclassification in the future.

The US finance department did not approve of our offer to employ the Slovakian freelancer as it seemed higher than what they were currently paying the freelancer. An employee misclassification case did not seem imminent, so they decided not to act.

Half a year later, the same company contacted us to employ a Slovakian freelancer. Our offer got approved but the freelancer refused to sign our employment agreement. In this half year, the relationship between the freelancer and the US company went sour. The freelancer decided to go to the labour authorities instead. We never heard the ultimate verdict, but from communication with the HR director, we understood that they risked paying the due social security taxes, vacation, severance payment and additional fines. The total claimed amount was approximately 70,000 EUR.

Achieving 100% Compliance through Official PEO Employment in Japan: Key Benefits for Foreign Talent

  • NO business risks: secured customer base and intellectual property
  • On-site customer support and in-depth knowledge of local business culture
  • Local managers speak your language
  • Your time and money saved
  • Less time spent on recruitment, evaluation, onboarding of globally distributed teams of professionals, or a learning curve

To make it easy for you to choose between the two options, we have designed our ‘Employee vs Independent Contractor Checklist.

Unlocking the Cost and Risk Benefits of PEO-Employed Foreign Staff in Japan

  • Cost-Efficiency through Global PEO Solutions: Utilizing a global Professional Employer Organization (PEO) to engage and payroll foreign talent can yield approximately 30% in cost savings compared to handling employment in-house.
  • Significant Cost Reduction: Opting for PEO services can save your organization around 50% in operational expenses instead of establishing and maintaining your own corporate entity in Japan for payroll and employment purposes.
  • Enhanced Employee Loyalty and Retention: Leveraging employment options instead of contractor agreements can bolster employee loyalty by an impressive 47%. This fosters a stable environment where top-tier talent is more likely to commit long-term.
  • Mitigating Legal and Financial Risks: Official employment of foreign staff through a PEO virtually eliminates 95% of associated legal, financial, and business risks. Furthermore, this modality offers unparalleled flexibility, allowing you to engage in projects of varying durations and scale. Start lean with just one or a few employees and effortlessly expand your team as your operations evolve.

Download your free copy of
the ‘Employee vs Independent Contractor’ Checklist

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