Procedures When Hiring Employees

You might consider hiring an employee when you start a business and your business gets busy.

Let’s take a look at what kind of procedures are required when hiring an employee and what kind of procedure is to be followed.

(1) Clarify working conditions and make a contract

As for this, please refer to the blog below. The next thing to do is to take out labor insurance.

(2) Take out labor insurance

Labor insurance is a general term for “workers’ accident insurance” and “employment insurance”.

“Workers’ accident compensation insurance” is applied when an employee is injured or sick at work.

“Employment insurance” is insurance that allows to receive unemployment insurance benefit when an employee loses his or her job.

When you hire an employee, the company is obliged to take out “labor insurance”.

Workers’ accident compensation insurance is that you always have to take out regardless of employment type such as full-time employees or part-time employees (compulsory enrollment).

Employment insurance is compulsory if you hire a part-timer who works 20 hours or more a week.

1) Procedure method and procedure

1.To take out labor insurance, submit an “insurance-related establishment notification” to the “Labor Standards Inspection Office” that has jurisdiction over the location of your company and take out “labor accident insurance”.

  1. Next, go through the “employment insurance” procedure. Regarding employment insurance, the jurisdiction is “Public Employment Security Office”. Please submit the “notice of establishment of employment insurance covered office” and “notice of acquisition of employment insurance insured qualification” for the first employee to “Public Employment Security Office”.

Companies other than agriculture, forestry and fisheries and construction industry are called “unified application business” and pay “worker’s accident compensation insurance” and “employment insurance premium” together.

Labor insurance premiums are estimated to be paid at banks, etc. for the year (until March of the following year). After confirming the total amount of salary paid to employees from April of this year to March of the following year, the system is such that the estimated insurance premium for the next year will be paid again.

2) What is the insurance premium (as of July 1, 2022)

Workers’ accident compensation insurance is borne only by the business owner, and the insurance premium rate varies depending on the type of industry, but in the case of wholesale / retail, restaurants or accommodation, it is currently 0.3%. Employment insurance is 0.65% for business owners and 0.3% for employees, except for agriculture, forestry and fisheries, sake manufacturing, and construction.


Workers’ accident compensation insurance is insurance for employees’ work-related injuries and illnesses, but if certain requirements are met, business owners can also take out insurance.

In addition, if the employer does not properly apply for employment insurance, even if the employee retires (in some cases, even if he / she is asked to stop due to the company’s circumstances), he / she will not be able to receive unemployment benefits. Please consult with a social insurance labor consultant.



(3) Take out social insurance

I will explain social insurance in another blog. 

If you would like to consult in a hurry,

Please contact : Contact Form



Yumiko Kamioka
Labor and Social Security Attorney, USCPA
MASHR CONSULTING Corporation Labor and Social Security Attorney
Ginyo Building 8F, 2-9-40, Kitasaiwai, Nishi-ku
Yokohama-city, Kanagawa, Japan
Tel: 81-45-594-7315 Fax: 81-45-594-7316

Published by

Yumiko Kamioka

With 16 years of experience working in the HR department of foreign-affiliated companies, I’ll support the enrollment of social insurance and the creation of employment contracts in English. Please feel free to contact me if you have questions with social insurance or set working conditions with employees!