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Temp and Contract for Beginners (Part 1)

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27-05-2015
Submitted by global_admin on Wed, 05/27/2015 - 08:04
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To the beginner, contract work can be a mystery.  

Unlike a permanent role (seishain), there are many types of contract work to look into.  Even the English word “contract” is thrown around loosely to cover all types of “non permanent” positions here in Japan.

The three main types of contract work are 1) temporary (haken), 2) temporary-to-permanent, or “temp-to-perm” (shokai yotei haken), and 3) direct contract (keiyaku shain).  Here is a chart highlighting the differences of each type. 

 

 

Temp

Temp-to-perm

Contract

Permanent

 

Payroll

Agent

Agent

Company

Company

 

Social benefits covered by

Agent

Agent

Company

Company

 

Typical pay rate

Hourly

Hourly

Monthly

Monthly

*1

Length of assignment

Finite

Finite

Finite

Indefinite

*2

Overtime

Paid

Paid

Depends

Depends

 

Possibility to go perm

Possible

Very likely

Possible

--

 

Typical notice period

2-4 weeks

2-4 weeks

2-4 weeks

2-4 weeks

*3

 

*1 Daily, weekly, monthly payments are possible for all types.

*2 Length of assignment for may vary from 1 day to months, up to 3 years (except Permanent).

*3 Notice period is normally stipulated in the employment contract.


As you can see, the main difference is whether you are hired (i.e., paid) directly by the company you will be working at, or by the agency who is responsible for providing that service.  The other factors can vary from contract to contract.  

A common misconception is that a contract worker cannot resign in the middle of an assignment.  This is not true.  Both employer and employee have the right to terminate the contract, provided due notice is given.  So even if you are on a 6-month contract, legally it is possible to hand in your resignation, as long as you serve your notice period determined in your contract. 

In my next blog I will be discussing the benefits of each; meanwhile if you have any questions, feel free to contact me anytime. 

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