Employer of Record Japan services provide a powerful solution for companies eager to enter Japan’s market seamlessly without the complexities of setting up a local entity. With Japan’s strict labor laws regulating contracts, terminations, and worker benefits, navigating compliance can be complex.
An EOR simplifies these challenges by ensuring full legal compliance, managing HR tasks, and providing a smoother market entry. Given that 99.7% of Japanese businesses are small to medium-sized enterprises, there’s significant potential for growth when entering this market strategically.
With Japan’s skilled workforce and advanced industries, using an EOR allows companies to effectively access top local talent while minimizing entry barriers. Here are the top EOR providers in Japan for 2024 that can help you find the best talent.
What is a Japan Employer of Record?
An Employer of Record (EOR) in Japan is a specialized service that allows companies to legally hire staff without creating a local business entity.
The EOR becomes the legal employer on record, handling employment obligations like payroll, taxes, and benefits, so foreign companies can build a team in Japan while staying compliant with local laws. This setup saves time, simplifies entry into the market, and removes the hassle of setting up a Japanese company.
Using an EOR can save up to 85% on incorporation costs, making it an attractive option for businesses exploring the Japanese market.
Also known as 代替雇用 (daitai koyō) in Japanese, an EOR helps foreign companies hire local talent and handle all legal and HR duties—from payroll to employee benefits. This lets companies focus on business growth while the EOR ensures smooth, compliant operations within Japan’s regulations.
Japan has strict labor laws, which often create challenges for foreign companies that are not familiar with the local language and business practices.
EOR services step in as trusted partners, equipped with knowledge of Japanese labor laws and work culture, to help businesses establish a local workforce without the burden of opening an entity.
By hiring an EOR, companies can tap into the Japanese market quickly and efficiently with local experts on board.
Illustration of employees from various departments hired through Employer of Record companies in Japan (dok/Image by freepik)
How Does a Japan EOR Work?
A Japan EOR handles the complexities of hiring and employment, so international companies can expand into Japan without establishing a local entity. Here’s a step-by-step breakdown:
Partnership Establishment
The company partners with a Japan EOR provider, setting up an agreement that defines services, compliance duties, and fees.
Client Onboarding
The company gets access to a centralized platform for managing documents, performance tracking, and onboarding requirements for Japanese employees.
Recruitment Support
The company usually leads recruitment, but the EOR can assist with compliance checks and provide consultancy during the hiring phase.
Employee Onboarding
Once employees are chosen, the EOR drafts legally compliant contracts, sets up payroll, handles tax filings, and manages employee benefits.
Ongoing HR and Legal Management
The EOR takes care of payroll, social security, and HR support, ensuring all employment practices follow Japanese labor laws.
Daily Operations Management
While the EOR handles admin tasks, the company manages daily activities like scheduling and project assignments.
Offboarding Support
When an employee exits, the EOR oversees the termination process per Japanese labor regulations to ensure compliance.
Employer of Record (EOR) Companies in Japan
1- Gini Talent
Gini Talent was founded in 2019 to meet the growing demand for IT staffing and recruitment. Based in Istanbul, Turkey, with a second office in Samsun, Gini Talent aims to connect businesses with top IT talent while ensuring an easy and effective hiring process.
Gini Talent also offers support through Employer of Record (EOR) services, ideal for companies looking to expand globally without setting up a local entity. Through EOR, Gini Talent acts as the legal employer for your new hires, handling payroll, tax compliance, and local benefits.
This setup allows businesses to quickly and efficiently build teams abroad while ensuring they meet all local regulations. With Gini Talent’s EOR, you can focus on growth while we handle the complexities of legal employment, making global hiring a smoother, hassle-free experience.
2- Horizons
Horizons is a leading Employer of Record (EOR) and Global PEO, helping companies hire and pay employees across 180+ countries.
A global EOR provider with a strong presence in Japan and East Asia, Horizons offers essential support for hiring and payroll in Japan, making it ideal for businesses looking to expand into the region.
Known for assisting small to medium-sized businesses hiring between 1 and 50 people, Horizons ensures compliance with local labor contracts while allowing clients to manage day-to-day supervision.
With additional support for global mobility and visa services, Horizons’ local teams provide expert guidance in employment law and HR, making them a top choice for businesses expanding internationally.
3- Deel
Founded in 2019 by Alex Bouaziz and Shuo Wang, Deel offers businesses comprehensive tools to manage global teams seamlessly.
With fast onboarding capabilities that include compliant contracts, payroll in local currencies, and compliance with local labor laws, Deel makes hiring internationally as straightforward as hiring locally.
For added flexibility, the platform supports contractor payments and offers immigration assistance, ensuring talent can be brought on board with the proper visas.
These solutions let companies focus on growth while Deel takes care of the essential HR and compliance details, making it a popular choice for Employer of Record (EOR) services, including in Japan.
4- Skuad
For companies looking to expand into Japan, Skuad offers a simplified way to hire and manage employees without needing to set up a local entity.
Skuad’s Employer of Record (EOR) solution handles all aspects of local employment, including payroll, tax compliance, work permits, and benefits. This means your team can get started in Japan quickly and easily while staying compliant with Japan’s complex labor laws.
Japan’s regulatory landscape, known for its strict employment laws, can be challenging for foreign companies.
Skuad’s team of experts ensures you’re covered, managing employment contracts, payroll, taxes, and employee benefits, all within legal frameworks. They also support visa and work permit applications, making it simple to bring in the right talent, whether they’re local hires or transfers from other countries.
With Skuad’s EOR in Japan, companies enjoy a streamlined hiring process, avoiding the high costs and time delays of establishing a local entity.
This recruitment agency in Japan allows you to manage your team from anywhere, with all hiring, onboarding, and payroll in one central system. It’s an efficient, fully compliant solution for any business looking to access Japan’s highly skilled workforce.
5- Velocity Global
Velocity Global operates internationally across over 185 countries, making it a truly global company. Thanks to its extensive local partner network, it provides foreign companies with seamless integration into Japan’s business environment through its PEO/EOR services.
Velocity Global’s team manages all the administrative work involved in hiring employees in Japan, so companies don’t need to establish a local entity themselves. This setup streamlines the hiring process, reducing hassle and ensuring a smooth entry into the Japanese market.
6- Sky Executive
Sky Executive, established in 2018, is a leading recruitment and Employer of Record (EOR) firm dedicated to helping companies expand across Asia, including in Japan.
With over 80 years of combined HR expertise, Sky Executive’s team is uniquely positioned in Asia’s major business hubs, offering specialized recruitment services and HR support to guide clients through the complexities of the Asian market.
From executive recruitment to complete EOR services, Sky Executive provides tailored support for hiring, onboarding, payroll management, compliance, and talent development.
This means that businesses can focus on growth while Sky Executive takes care of all administrative and HR requirements.
With a commitment to client success, Sky Executive works with mid-tier to Fortune 500 companies, offering insights and strategies that align with each organization’s unique goals.
7- Globalization Partners
Globalization Partners, founded in 2012, makes international expansion simple for businesses through its Employer of Record (EOR) services, allowing companies to hire global teams without the need to set up local entities.
Operating in over 180 countries, they manage essential employment functions such as payroll, taxes, compliance, and benefits, enabling companies to confidently expand worldwide.
Their solutions streamline onboarding, manage payroll in multiple currencies, and ensure strict compliance with local labor laws, which simplifies managing global teams.
By focusing on the “democratization of opportunity,” Globalization Partners connects businesses with top talent globally, leveraging advanced employment solutions and deep local expertise.
8- BGC
BGC, established in 2012, has positioned itself as a trusted recruitment provider in Asia, particularly for the Singapore government.
They offer tailored solutions across hiring, payroll, and business process outsourcing, designed to simplify operations for businesses of all sizes. BGC’s Employer of Record (EOR) services allow companies to access remote talent without the legal complexities of direct hiring in new markets.
With established networks across Singapore, Malaysia, and Hong Kong, BGC supports workforce needs, ensuring efficient and compliant hiring processes. Their expertise has made them a valuable partner for businesses seeking to streamline and expand their talent pool in the APAC region.
Japan, as the world’s fourth-largest economy, offers vast opportunities across advanced tech and skilled labor sectors.
However, its demanding labor laws, such as the 360-hour annual overtime cap, make local compliance daunting. An EOR’s expertise in these areas helps businesses overcome hurdles with ease.
Given that 99.7% of Japanese companies are SMEs, entering the market through an EOR offers scalability and potential for growth without the typical startup delays or compliance risks.
Ready to elevate your hiring strategy in Japan? Explore our EOR services now!
