- May 5, 2024
- Posted by: legaleseblogger
- Category: Related News
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## Hiring a Foreign Full-Time Remote Worker for a Japanese Company
Let’s imagine a scenario where a Japanese company is interested in hiring a foreign full-time remote worker, eliminating the need for a visa.
### Questions Regarding Employment of Foreign Remote Workers
1. What steps should a company follow to employ a full-time foreign remote worker?
2. Would it be more beneficial for both the company and the worker to consider the expense as freelance/contract work?
3. When would Shakai Hoken, the Japanese social insurance system, come into play in this situation?
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The AI Legalese Decoder offers a convenient solution for understanding and navigating the legalities and regulations associated with employing foreign workers. It can provide guidance on the proper procedures for hiring a foreign remote worker, outline the advantages and disadvantages of classifying expenses, and clarify the involvement of Shakai Hoken. Its insights and analysis can assist companies in making informed decisions and ensuring compliance with relevant laws and regulations.
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>would it involve Shakai Hoken?
If they are an employee and the Japanese company meets the criteria to enroll all of its employees in Shakai Hoken, then yea. I believe it’s one of the few occasions where someone who has never set foot in japan, can be paying Japanese pension, and Japanese health insurance (edit: and Japanese employment insurance)
It’s among one of the reasons why they work as their own self employed entity in the the country they reside in
OK so I’ve gone down this road and talked with JETRO a lot about it.
Full time employee: need to enroll into pension, taxes, etc. like any other Japanese employee despite them not being able to benefit from this.
Contractor: This is the only way you can hire someone without paying into the Japanese system. They essentially invoice you monthly for an agreed fee and you pay into their account. Just like any other transaction with an overseas business
Thank you to everyone for sharing their thoughts and experiences.
From my own research thus far, it does look like full-time employment of a foreign remote worker does mean an obligation to enroll in Shakai Hoken; albeit with some exceptions such as the component 介護保険 – Nursing Insurance.
Tax-wise, it seems the employee would have to handle that on their own based on local laws.
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u/japanpole & u/starkimpossibility, since Shakai Hoken is a requirement in such a situation, I would assume that claims would have to be possible, just probably very tedious (especially for something like 健康保険 – Health Insurance️).
Would I be right to assume that?