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Jump to Another Job - Part 8: Reading Offer Letters and Employment Conditions

2025-08-11
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Jump to Another Job

Jump to Another Job - Part 8: Reading Offer Letters and Employment Conditions

Understanding your employment contract is crucial for making an informed decision. Japanese law requires specific disclosures, and knowing what to look for can protect your interests and set clear expectations.

Legal Requirements for Employment Conditions (Article 15 LSA)

Labor Standards Act Article 15

According to Labor Standards Act Article 15, employers must clearly state in writing the key employment conditions including work hours, salary, payment schedule, holidays, and termination conditions.

Official references:

Required Disclosures

Mandatory written disclosures:

  • Work location and job description
  • Working hours and rest periods
  • Salary structure and payment schedule
  • Holiday and leave policies
  • Termination conditions and procedures

Comprehensive Review Checklist

Job Title and Description

Key elements to verify:

  • Official job title (affects future career progression)
  • Detailed job responsibilities and scope
  • Reporting structure and team composition
  • Performance expectations and success metrics

Red flags:

  • Vague or overly broad job descriptions
  • Significant mismatch with discussed role
  • Unclear reporting relationships

Compensation Structure

Base Salary (基本給)

Important details:

  • Monthly base salary amount
  • Annual calculation method (12 months vs. 14-16 months including bonuses)
  • Salary review schedule and criteria
  • Overtime calculation basis

Allowances and Benefits

Transportation allowance (交通費):

  • Maximum monthly amount (up to ¥100,000 is tax-free)
  • Actual cost vs. fixed amount policy
  • Remote work impact on transportation costs

Other allowances:

  • Housing allowance (住宅手当): Amount and eligibility criteria
  • Family allowance (家族手当): Rates for dependents
  • Meal allowance (食事手当): Daily or monthly rates
  • Special skill allowances: Language, certification premiums

Bonus Structure (賞与)

Critical details:

  • Summer and winter bonus calculation methods
  • Performance bonus criteria and timing
  • Company performance impact on bonus amounts
  • Probation period impact on bonus eligibility

Overtime Policy

法定内残業 (Legal overtime within 40 hours/week):

  • Standard hourly rate calculation
  • Weekly hour limitations

法定外残業 (Overtime exceeding legal limits):

  • 25% premium rate for hours over 40/week
  • Additional premiums for late night work (22:00-05:00)
  • Weekend and holiday rates (35% premium)

Company-specific policies:

  • Monthly overtime hour caps
  • Advance approval requirements
  • Overtime meal allowances
  • Compensatory time off policies

Probation Period (試用期間)

Duration and Terms

Standard probation periods:

  • Typical duration: 3-6 months
  • Extension conditions: Clearly defined criteria
  • Performance evaluation schedule

Evaluation Criteria

Success metrics:

  • Specific performance targets
  • Skill development milestones
  • Cultural integration assessments
  • Training completion requirements

Termination during probation:

  • Notice period requirements
  • Evaluation process transparency
  • Appeal procedures

Work Arrangements

Hybrid and Remote Work

Policy details:

  • Days per week in office vs. remote
  • Core hours requirements for collaboration
  • Home office setup allowances or requirements
  • Communication tool requirements and reimbursements

Travel and Commuting

Transportation benefits:

  • Monthly commute allowance calculation
  • Business travel expense policies
  • Domestic/international travel frequency expectations

Leave Policies

Annual Paid Leave (有給休暇)

For job transfers:

  • Carryover policies from previous employment
  • Accrual schedule for new hires
  • Usage restrictions during probation period

Standard accrual:

  • First year: 10 days (after 6 months)
  • Subsequent years: Increasing by 1-2 days annually
  • Maximum: 20 days annual accrual

Special Leave Types

Family-related leave:

  • Maternity leave (産前産後休業): Before and after childbirth
  • Childcare leave (育児休業): Up to 1 year per child
  • Nursing care leave (介護休業): For family member care

Other leave types:

  • Sick leave: Paid vs. unpaid policies
  • Bereavement leave: Duration by relationship
  • Personal leave: Circumstances and approval process

Non-Disclosure Agreement (NDA)

Scope of confidentiality:

  • Trade secrets and proprietary information
  • Customer data protection requirements
  • Post-employment obligations and duration
  • Penalty clauses for violations

Non-Compete Clauses

Enforceability factors:

  • Geographic scope limitations
  • Time period restrictions (typically 6 months to 2 years)
  • Industry/role specificity
  • Compensation for non-compete restrictions

Intellectual Property (IP)

Work product ownership:

  • Company-developed IP ownership
  • Personal project policies
  • Patent and invention disclosure requirements
  • Publication and speaking approval processes

Red Flags to Watch For

Compensation Issues

Warning signs:

  • Unclear bonus calculation methods
  • Excessive overtime expectations without proper compensation
  • Benefits significantly below market standards
  • Salary review policies that seem unfair or infrequent

Work-Life Balance Concerns

Potential problems:

  • Unlimited overtime expectations
  • No clear remote work policies
  • Excessive travel requirements without compensation
  • Unrealistic probation period expectations

Concerning terms:

  • Overly broad non-compete clauses
  • Unclear termination procedures
  • Excessive confidentiality requirements
  • Missing required legal disclosures

Questions to Ask Before Signing

Clarification Questions

About compensation:

  • "How is the annual bonus calculated exactly?"
  • "What factors affect salary review decisions?"
  • "Are there opportunities for performance-based increases?"

About work arrangements:

  • "What does a typical work week look like?"
  • "How is overtime tracked and approved?"
  • "What flexibility exists for remote work?"

About career development:

  • "What training and development opportunities are available?"
  • "How often are performance reviews conducted?"
  • "What are the typical career progression paths?"

Key Takeaways:

  • Read all employment conditions carefully and ask for clarification
  • Understand both legal requirements and company-specific policies
  • Pay special attention to compensation calculation methods
  • Ensure work-life balance policies align with your expectations
  • Don't hesitate to negotiate terms that seem unreasonable

Next: Part 9 - Company Whitelist vs. Blacklist Research