Q2. How an employment can be terminated in Japan

A2. Employment cannot easily be terminated in Japan.
Firstly, employment cannot be terminated during its term without a justifiable reason. For example, in case of making an employee redundant, the employer would usually have to establish such factors as the necessity of reducing the number of employees and the appropriateness of dismissing employees as a measure for reducing the number of employees (instead of taking such other measures as encouraging early retirement).

Secondly, even if the employer has a justifiable reason to terminate a person’s employment, 30 days’ prior notice (or payment of average wages for the period by which notice period is shorter than 30 days) must be given to the employee (unless the grounds for termination are serious enough to justify immediate termination).

Termination of employment may become contentious. An employer who desires to terminate employment in an amicable manner will quite often offer a termination package which could be considered as generous in the circumstances. However, if the employee objects to the termination despite being offered a generous termination package, the parties may have to settle the matter through court actions (such as ordinary lawsuits or labor tribunals).

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