Understanding Employment Types in Japan: Permanent vs. Contract Employees

Are you working or planning to work in Japan? Then you may have heard of the terms full-time employee and contract employee.

In this article, we explain the differences, pros, and cons of each employment type in simple English.

Let’s find the best working style for your life and goals in Japan!

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【What Is a Full-Time Employee?】

Full-time employees work with no fixed end date. They usually work full-time hours (e.g. 8 hours a day) and stay with the company for many years.

■ Advantages of Full-Time Employment

・Can work until retirement (usually 60–65 years old in Japan)
・Salary increases and bonuses may be available
・Easier to pass loan and credit card checks
・Access to full social benefits (health insurance, paid leave, etc.)

■ Disadvantages of Full-Time Employment

・Harder to take long vacations
・You may be transferred to a different department or location

【What Is a Contract Employee?】

Contract employees work for a fixed period, such as 3 months, 6 months, or 1 year. Before the contract ends, you and the company decide whether to continue.

■ Advantages of Contract Employment

・Can try many types of jobs
・Easier to get hired than full-time roles
・Less likely to be transferred
・Some companies offer a path to full-time employment

■ Disadvantages of Contract Employment

・Your contract may not be renewed
・You may not be able to quit during the contract period

【Comparison: Full-Time vs. Contract Employee】

【Important Points When Working as a Contract Employee】

Before signing a contract, confirm these three things with the company:

1.Contract Period: When does it start and end?

2.Renewal Conditions: What do you need to do to continue working?

3.Chance to Become Full-Time: Is it possible? What are the conditions?

Find the Best Work Style for You

Understanding the difference between full-time and contract employees can help you find a job that fits your lifestyle and goals in Japan.

YOLO JAPAN offers many job listings for both types of employment.

Register for free today and apply for jobs that match your needs!

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*Conditions may vary by company. Be sure to check the job details before applying.

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