Hire in Japan without the complexities—Get in touch with an EOR

How to choose the best EOR provider in Japan

When selecting an Employer of Record (EOR) provider for your expansion into Japan, it’s crucial to focus on a partner with a proven track record and expertise in navigating the complexities of the Japanese labor landscape. The right EOR will help you streamline operations, mitigate compliance risks, and ensure your workforce is fully supported under Japanese regulations. Key considerations when choosing an EOR in Japan:

In-depth knowledge of Japanese labor laws

A strong EOR partner should possess comprehensive knowledge of Japan’s labor laws, tax system, employee benefits, and social insurance contributions. Ensure the provider has a solid reputation for compliance and a history of supporting businesses across various industries in Japan.

Proactive and reliable customer support

Timely, responsive support is essential for maintaining smooth operations. Opt for an EOR that provides dedicated account managers and offers 24/7 assistance. This ensures your team gets the support it needs, especially as you navigate local employment intricacies.

Clear and transparent pricing

To avoid unexpected costs, choose an EOR with a clear and upfront pricing model. Request a detailed breakdown of all fees to avoid hidden charges and maintain financial transparency as you scale in Japan.

Balancing cost with quality

While it’s tempting to choose the lowest-cost provider, such an approach can sometimes lead to compliance risks and a lack of quality service. Instead, prioritize an EOR that offers competitive pricing without compromising on service quality, compliance expertise, or operational support. In the next section, we’ll dive into how EOR services function in Japan and the critical processes they handle to ensure compliant, efficient, and seamless workforce management for your business.

How EOR services work in Japan

Engaging with an Employer of Record (EOR) allows businesses to simplify their entry into the Japanese market by adapting the process to local labor laws and HR practices. The EOR takes on all compliance and administrative responsibilities, ensuring your business operates smoothly while you focus on launching operations.

Step 1: Drafting compliant employment contracts

Once you’ve selected the ideal candidate, the EOR prepares employment contracts that adhere to Japanese labor laws. These contracts are tailored to include job responsibilities, working hours, compensation details, and termination terms. The finalized document is securely shared with the candidate for review and signature.

Step 2: Providing competitive local benefits

To attract and retain top-tier talent, the EOR designs benefit packages aligned with Japanese standards. These packages are customized to meet local expectations, enhancing employee satisfaction and loyalty.

Step 3: Organizing documentation and payroll setup

The EOR collects all necessary documents, including tax registration numbers, bank account details, and identification records, to facilitate payroll setup. This organized process ensures a smooth onboarding experience for you and your employees.

Step 4: Handling payroll and ensuring tax compliance

Payroll in Japan requires precise calculations for taxes, social security contributions, and other mandatory deductions. Using advanced payroll systems, the EOR ensures accurate and timely salary disbursements while consolidating payroll management for your workforce.

Step 5: Managing compliance and offboarding

Post-onboarding, the EOR oversees ongoing compliance with Japanese labor laws, ensuring correct salary payments and benefits administration. When employees exit, the EOR manages offboarding processes, including severance payments and required documentation, ensuring smooth transitions. By partnering with an EOR like Multiplier, you eliminate the administrative challenges of expanding into Japan. With expert management of compliance, payroll, and HR operations, an EOR allows you to focus on driving business growth. Expanding into Japan with an EOR is not just efficient—it’s a strategically sound decision for scaling your global operations.

Take the next step in your Japan expansion with Multiplier EOR

Multiplier’s Employer of Record (EOR) offer a comprehensive solution for businesses seeking to expand into Japan in a compliant and efficient manner. Combining global reach with deep local expertise, Multiplier ensures that expansion into Japan adheres to local labor laws and HR regulations. Partnering with Multiplier helps businesses avoid the complexities and costs associated with establishing a local entity. This approach has been proven to reduce operational overheads and streamline HR processes, allowing companies to focus on scaling. With 24/7 support available, businesses receive proactive assistance to navigate challenges and maintain smooth operations. Beyond managing payroll and HR functions, assistance is provided in navigating Japan’s labor regulations, mitigating risks, and unlocking opportunities for growth. Book a demo today to discover Multiplier EOR.