Leave Policy in Japan

Japan's leave framework is governed by multiple statutes, most notably the Labour Standards Act and the Child Care and Family Care Leave Act, which together establish binding entitlements that apply regardless of any additional benefits an employer may choose to offer. Statutory provisions set minimum floors for annual leave accrual, maternity and paternity leave, and wage replacement rates, while company policy may supplement but cannot fall below these legislated standards.

For international employers operating in Japan, maintaining compliance is operationally demanding, particularly as benefit reforms introduced in 2025 have added new obligations around childcare leave disclosure and parental pay rates. Tracking entitlements, enforcing mandatory leave usage rules, and managing expiry timelines across entities requires consistent attention to local statutory requirements, an area where Gloroots supports employers through its Employer of Record service, applying country-specific rules under local execution with centralized governance.

Leave Policy at a Glance

Overview and Legal Basis for Leave in Japan

Japan's leave framework rests on several statutes, each covering a distinct category of entitlement. The primary laws are the Labour Standards Act (LSA), the Child Care and Nursing Care Leave Act, the Health Insurance Act, the Industrial Accident Compensation Insurance Act, and the Public Holiday Act.

Japanese leave falls into two categories. Houtei kyuka (statutory leave) includes annual paid leave, maternity leave, childcare leave, nursing care leave, and menstrual leave. These minimums are set by law and cannot be reduced by any employment contract or work rules. Shoteigai kyuka (contractual leave) covers types such as sick leave, bereavement leave, and marriage leave, which employers define in their own work rules. Understanding how does EOR work helps employers manage these obligations without establishing a local entity.

Covered leave categories include:

• Annual paid leave

• Maternity leave

• Childcare leave (including childcare at birth)

• Nursing care leave

• Menstrual leave

• Sick leave (contractual)

• Bereavement and marriage leave (contractual)

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Annual Leave (Earned / Privilege Leave)

Annual paid leave in Japan is governed by Article 39 of the Labour Standards Act. Employees become eligible after six months of continuous service, provided they have met the 80% attendance requirement during that period.

Entitlement scales with length of service, reaching a maximum of 20 days per year after six and a half years. Since April 2019, LSA Article 39(7) requires employers to ensure employees actually use at least 5 of their accrued days each year. Employers who fail to meet this obligation face statutory penalties.

Part-time employees receive proportional leave under LSA Article 39(3):

• 1 day per week: 1 to 3 days

• 2 days per week: 3 to 7 days

• 3 days per week: 5 to 11 days

• 4 days per week: 7 to 15 days

By labour-management agreement, employees may take up to 5 days per year in hourly increments under LSA Article 39(4). Employers also hold a scheduling right (jiki henko-ken) allowing them to reschedule leave if granting it during the requested period would disrupt business operations.

Unused leave from year one carries forward to year two only. After two years, it expires under LSA Article 115. There is no encashment option during active employment. On termination, however, all accrued unused annual leave must be paid out in cash. For a regional comparison, see the leave policy in China.

Public Holidays

Japan observes 16 national public holidays each year. Public holidays are not statutory holidays under the Labour Standards Act (LSA) unless an employer designates them as such in work rules. In practice, most businesses treat them as paid days off.

If a national holiday falls on a Sunday, the next working day becomes a substitute holiday (furikae kyujitsu). When a working day falls between two national holidays, it also becomes a holiday, known as a citizen's holiday (kokumin no kyujitsu). Silver Week in September is a common example.

Several holidays use floating-date rules: Coming of Age Day falls on the 2nd Monday of January, Marine Day on the 3rd Monday of July, Respect for the Aged Day on the 3rd Monday of September, and Sports Day on the 2nd Monday of October.

Under LSA Article 37, if an employee works on a designated statutory holiday, the employer must pay at least 35% above the normal wage rate or provide a substitute day off. Businesses typically close from December 29 through January 3.

Dates marked with floating rules are calculated from the formulas above. Review this table annually as equinox dates may shift.

Sick Leave

Japan has no statutory requirement for employers to provide paid sick leave. Employees who fall ill rely on two separate insurance-based systems depending on whether the illness is work-related.

For non-work-related illness or injury, the Health Insurance Act provides a sickness allowance (shoubyouteate). The benefit equals approximately 67% of the employee's standard daily wage. It begins on the 4th consecutive day of absence, after a 3-day unpaid waiting period. The maximum payment duration is 18 months. Employees must be enrolled in the statutory health insurance scheme to qualify, and a medical certificate is required to support the claim.

For work-related illness or injury, the Industrial Accident Compensation Insurance Act applies. Under LSA Article 76, the employer must pay 60% of the employee's average wage during any period not covered by workers' accident compensation insurance. In practice, workers' accident compensation insurance covers most work-related cases directly.

The distinction matters for compliance. Non-work-related sick pay flows through the health insurance system; work-related sick pay flows through workers' accident compensation. Employers managing staff in Japan should confirm which scheme applies before processing any absence. For a comparison of how sick leave operates in a neighbouring jurisdiction, see the leave policy in Hong Kong.

Casual Leave

Casual leave is not a statutory entitlement in Japan. It falls under shoteigai kyuka, meaning contractual leave that employers may offer at their discretion, separate from the statutory annual paid leave governed by the Labour Standards Act.

Where employers do provide it, casual leave typically covers short personal matters such as minor errands or brief personal appointments. Entitlement is usually one to three days per year and does not carry forward to the following year.

Employees should not treat casual leave as equivalent to annual paid leave. Annual paid leave is a statutory right; casual leave exists only if the employment contract or company policy explicitly grants it.

Maternity Leave

Maternity leave in Japan is governed by Articles 65 to 67 of the Labour Standards Act (LSA) and the Health Insurance Act. All female employees are eligible regardless of how long they have worked for the employer.

The standard entitlement is 14 weeks: six weeks before the due date and eight weeks after birth. The post-birth period cannot be waived for the first eight weeks except where a doctor certifies the employee fit to return after six weeks.

Entitlement by scenario

Job protection applies under LSA Article 19, which prohibits dismissal during maternity leave and for 30 days after it ends. The Child Care and Nursing Care Act further guarantees the right to return to the original or an equivalent position.

To apply, employees notify their employer of the pregnancy and submit an application to their health insurance society (kenkohoken kumiai) or the Japan Health Insurance Association. Required documents include a medical certificate stating the due date, the mother-child health book, and a hospital birth certificate.

Under LSA Article 67, employees who are nursing are entitled to two 30-minute nursing breaks per day until the child reaches one year of age. These breaks are in addition to standard rest periods.

For a comparison of statutory maternity protections in another major economy, see the leave policy in Germany.

Paternity Leave

Fathers in Japan are entitled to paternity leave under the Child Care and Nursing Care Leave Act. Fixed-term employees must have at least one year of continuous employment to qualify.

During childcare leave, the employer pays no salary unless the employment contract states otherwise. Benefits are paid by employment insurance, not the employer.

• Childcare at Birth Leave: up to four weeks within eight weeks of birth, taken in one or two segments, with a daily benefit cap of $99 (15,190 JPY) per day (subject to annual revision).

• Standard childcare leave benefit: 67% of pre-leave wages for the first six months, then 50%.

• Post-Birth Leave Support Benefit (from April 2025): if both parents each take 14 or more days within eight weeks of birth, each receives an additional 13% of pre-leave wages for up to 28 days. The combined benefit reaches approximately 80% of gross wages, or roughly 100% net after tax and insurance exemptions.

Dismissal or discrimination on the basis of paternity leave is prohibited under the Child Care and Nursing Care Act. Employers cannot penalize fathers for taking this leave.

Adoption and Surrogacy Leave

Adoptive parents in Japan have the same parental leave entitlements as biological parents under the Child Care and Family Care Leave Act.

To qualify, an employee must have at least one year of continuous employment and a reasonable expectation of continued employment after the child turns 18 months old. Leave is available until the child reaches one year of age, with extensions to 18 months or two years available under the same conditions that apply to biological parents.

• Maximum leave duration: up to one year, extendable to 18 months or two years in qualifying circumstances.

• Documentation required: an adoption certificate must be submitted to the employer.

• Surrogacy: no specific statutory provision exists. Where applicable, general childcare leave rules apply.

This section is new and was not present on the existing page. Employers hiring in Japan should confirm documentation requirements with local counsel to ensure compliance.

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Bereavement Leave

Bereavement leave, known as kibiki kyuka, is not mandated by national statute in Japan. It falls under shoteigai kyuka and is governed by each company's work rules (shugyo kisoku).

Standard entitlements typically follow this pattern:

• 5 days for the death of a spouse, parent, or child

• 3 days for a sibling, grandparent, or grandchild

• 1 to 2 days for third-degree relatives

• 2 additional days if the employee arranges the funeral

Part-time and short-term workers are not entitled to bereavement leave unless the company's work rules explicitly include them. Employers should document all bereavement leave provisions clearly in their shugyo kisoku to avoid disputes.

Other Leave Types

Japan's Labor Standards Act (LSA) and related legislation cover several additional leave categories that employers must account for in their work rules.

Marriage leave: Five paid days is the standard practice under company work rules (shugyo kisoku). This leave is not mandated by national statute, so employers should confirm whether their policy is contractual or statutory in nature.

Nursing care leave: Under the Child Care and Nursing Care Act, employees may take up to 93 days of leave per family member for long-term nursing care. Short-term family care allows 5 unpaid days per year. Eligibility requires at least one year of continuous employment.

Menstrual leave: LSA Article 68 requires employers to grant leave when requested by a woman for whom working during her menstrual period would be especially difficult. Pay during this leave depends on company policy.

Civic duty and voting leave: LSA Article 7 requires employers to allow time off for lay judge duty, court appearances, and voting. Pay is not mandated by law, though a government allowance may apply for certain civic duties. Employers cannot refuse time off for voting.

Childcare Short-Time Work Benefit (from April 2025): Employees raising a child under age 2 who work reduced hours receive a benefit equal to 10% of their short-time wages. The employee must remain covered by employment insurance, and the combined total of wages and benefit cannot exceed pre-reduction wages.

Weekly rest day: LSA Article 35 requires at least one day off per week, or four days off within any four-week period (houtei kyuujitsu).

Carry-Forward and Leave Encashment Rules

Under LSA Article 115, paid leave entitlement expires after two years. Unused days from year one carry into year two only and cannot roll further.

For example: an employee earns 10 days in year one and uses 5. The remaining 5 days carry to year two but expire at the end of that year regardless of usage.

Encashment during active employment is not permitted under Japanese law. On termination, however, all accrued unused annual leave must be paid out in cash. This is a statutory requirement with no employer discretion.

LSA Article 39(7) adds a related obligation. Employers must ensure that any employee with an entitlement of 10 or more days uses at least 5 of those days each year. Employers may designate specific dates to meet this threshold. Tracking this requirement carefully affects how carry-forward planning works in practice. Using employer of record software can help automate leave balance monitoring and reduce the risk of non-compliance.

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Best Practices for Managing Leave Compliantly in Japan

Staying compliant with Japan's leave framework requires consistent documentation and proactive tracking. Four practices reduce risk materially.

• Track mandatory 5-day usage per employee. Document employer-designated leave dates to avoid LSA Article 39(7) penalties. Maintain records for each employee with 10 or more days of entitlement.

• File work rules in Japanese. Statutory and contractual leave entitlements must be clearly stated in Japanese-language work rules (shugyo kisoku) filed with the Labour Standards Inspection Office.

• Document all leave requests and approvals in writing. This includes medical certificates for sickness allowance claims and adoption certificates for parental leave applications.

• Offer benefits above the statutory floor. Enhanced bereavement or marriage leave aligns with Japanese market norms and supports retention. Note that 2025 benefit reforms require payroll system updates for the Post-Birth Leave Support Benefit and the Childcare Short-Time Work Benefit.

Working with a best employer of record partner gives HR and legal teams a structured way to govern these obligations across a distributed workforce in Japan.

Managing Leave Policy in Japan with Gloroots

Japan's leave framework spans multiple statutes: the Labor Standards Act, the Child Care and Nursing Care Act, the Health Insurance Act, and the 2025 Employment Insurance reforms. For international employers without local HR infrastructure, tracking obligations across these laws creates real compliance risk.

Gloroots manages statutory leave balance tracking, including mandatory 5-day annual leave usage monitoring. The platform integrates leave data with payroll to calculate sickness allowance and childcare leave benefits accurately.

Leave request and approval workflows run through a single system. Compliance reporting is generated automatically, giving finance and legal teams clear visibility into leave liability at any point in the year.

Gloroots also handles the 2025 Post-Birth Leave Support Benefit and Childcare Short-Time Work Benefit configurations, which require specific eligibility checks and benefit rate calculations under the updated Employment Insurance rules. These are managed as part of Gloroots EOR services, with local execution governed centrally.

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Frequently Asked Questions About Leave Policy in Japan

Who is eligible for annual paid leave in Japan?

Employees become eligible for paid annual leave after six months of continuous service, provided they have worked at least 80 percent of scheduled working days. The entitlement starts at 10 days and increases with each additional year of service up to a maximum of 20 days.

What is the mandatory 5-day usage rule?

Under the Labor Standards Act, employers must ensure that employees with 10 or more days of annual leave entitlement actually use at least 5 of those days each year. Employers are required to designate specific dates if an employee has not scheduled the days independently.

Failure to comply exposes the employer to fines of up to $1,947 (300,000 JPY) per violation. Tracking this obligation is a core part of leave administration in Japan.

How many days of annual leave are employees entitled to in Japan?

Full-time employees earn 10 days of paid annual leave after six months of continuous employment. Entitlement rises to 20 days after 6.5 years of service, under Labour Standards Act Article 39. Employees must meet an 80% attendance requirement each year to qualify. Part-time employees receive proportional leave under LSA Article 39(3).

Are employers required to ensure employees actually take annual leave in Japan?

Yes. Since April 2019, Labour Standards Act Article 39(7) requires employers to ensure that employees with 10 or more days of annual leave entitlement take at least 5 days per year. Employers who fail to comply face penalties. If an employee does not schedule leave independently, the employer must designate specific leave dates.

Are public holidays paid in Japan?

There is no statutory obligation under the Labour Standards Act to pay employees for public holidays. In practice, most employers provide them as paid days off. If an employee works on a statutory holiday, the employer must pay a premium of at least 35% above the normal wage rate under LSA Article 37.

What paternity leave is available to fathers in Japan?

Fathers are entitled to up to four weeks of Childcare at Birth Leave within eight weeks of the child's birth. Benefits are paid at 67% of pre-leave wages through employment insurance, subject to a daily cap of $99 (15,190 JPY). This leave is separate from standard childcare leave of up to one year.

From April 2025, a Post-Birth Leave Support Benefit adds 13% for up to 28 days when both parents each take 14 or more days of leave.

Can unused annual leave be cashed out in Japan?

Employees cannot encash unused annual leave during active employment. Upon termination, any accrued unused leave must be paid out in cash. Under Labour Standards Act Article 115, unused leave expires after two years, so employees should track carry-forward limits carefully.

How does annual leave carry-forward work in Japan?

Unused annual leave from year one can carry forward to year two only. It lapses at the end of year two under Labour Standards Act Article 115. For example, an employee who earns 10 days in year one and uses 5 carries the remaining 5 days into year two, after which they expire.

Is nursing care leave available in Japan?

Yes. Under the Child Care and Nursing Care Leave Act, employees with at least one year of continuous service can take up to 93 days of nursing care leave per family member. Leave may be split across up to three separate periods. An additional five unpaid days per year are available for short-term family care needs.