Thursday, September 12, 2013

Q: Social security regulation for a foreign firm hiring an employee.

A: Foreign employees and officers working for a foreign corporation or branch in Japan are protected by all types of Japan Labor Insurance law. Because the protection is no different from Japanese employees, everyone who has an address in Japan must be insured by public social insurance system and health insurance system. Four types of insurances are the followings:

1. Workmen's accident compensation insurance
Protect insured form work injury and accident as well as commuting.
2. Unemployment insurance
Protect insured from unemployment and support reemployment.
3. Health insurance
Provide medical care and treatment.
4. Pension plan
Provide security for retirement, death and disability.

If foreign employees are insured by Japan Social Insurance System, there often occurs a problem of double-insurance. Some can be resolved through bilateral social insurance treaty but not to satisfactory extent in most cases.

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