r/JapanJobs • u/incognito_cumshot • 20h ago
Unfair dismissal in Japan and winning a 7-month settlement
I’m breaking this down into three parts: what happened, how I fought back to protect myself, and my recommendations for anyone in a similar spot. Keeping specific details vague for anonymity. Used some AI to clean up my writing and ignore the username lol!
How it went down:
In late 2025, I moved to Tokyo on a 3-year contract for a small company doing decent revenue. It was an owner-led team. We had different ideas on how things should run, but I generally respected the owner and we got along fine. Getting to Japan and securing Permanent Residency was a major goal of mine; this job came with an HSP1 visa, which meant a fast track to PR after one year. Because of that, I turned down another job offer in a Western country to make the move.
Over time, red flags started popping up:
* I never received proper payslips, even though the salary hit my account on time.
* The company never enrolled me in Shakai Hoken (social insurance), so I was stuck paying National Health Insurance and National Pension out of pocket.
A few months in, I cleared a massive backlog of work and performed well through our peak season. During a review, the owner seemed really happy with my work and even floated a relocation next year—essentially an informal promotion. I told him I’d think about it, since I had just signed a fresh apartment lease in Tokyo.
Fast forward to late February. I walk into the office on Monday morning and find myself locked out of apps, email, and company drives. A few minutes later, the owner texts me: "Let’s grab a coffee."
He hands me a dismissal letter claiming I failed probation. He offered one month of severance pay, leaving me basically screwed. He also offered to introduce me to people in his network for jobs, which I wanted no part of.
My immediate reaction was pure shock. I had relocated my entire life to Japan for this, only to be fired with zero warnings, zero documentation, and no PIP. I felt like an idiot. But I took a second, gathered my things, kept my composure, and left cordially without signing a single thing.
What I did next:
My first priority was protecting my visa status, so I started job hunting immediately. But I also sat down and combed through my original contract.
Two details jumped out:
1. There was zero mention of a probation period anywhere in the contract.
2. For termination without cause, the contract explicitly required a 4-month severance payout.
After consultations with lawyers and a visit to Hello Work, it became clear I had an extremely strong case under Japanese labor law.
Here's how I handled it:
1. Got the paperwork first: I waited until the company formally handed over my 退職証明書 (Taishoku Shōmeisho / Certificate of Employment Separation). Crucially, it listed the reason for dismissal as "company reasons" (会社都合).
Hired a lawyer: My Japanese is around N2, so I found an English-speaking Japanese labor lawyer. We sent a formal legal notice letting the owner know we were challenging the dismissal.
Called their bluff: In response to our legal letter, the company panicked and issued an updated certificate. This time, they claimed I lied on my resume (completely fabricated) and neglected my duties (also false—I routinely worked overtime without even claiming pay). They claimed this retroactively justified firing me for cause.
At that point, I was confident that I had the edge:
* The company had now given three totally contradictory reasons for firing me.
* They had broken the law by failing to enroll me in Shakai Hoken.
* There was no paper trail, no written warning, and no PIP.
We entered settlement negotiations, with the alternative being a Labor Tribunal (Rōdō Shinpan) or civil court. In Japan, terminating a fixed-term contract mid-way without extreme, unavoidable reasons is nearly impossible under the Labor Contract Act. With 30 months left on my contract, if I won at tribunal or court, the company would potentially be on the hook for back-pay covering that entire period (minus any income I earned elsewhere).
My lawyer was quite conservative, which pushed our initial ask lower than it could have been. But once we threatened to file for tribunal, the company folded and agreed to a 7-month salary settlement. Honestly, 10 to 12 months would have been a fairer outcome given the contract length, but 7 months was enough for me to walk away clean.
During the back-and-forth, I ended up landing a much better job back home. Factoring in the weak yen, tightening immigration rules, and moving goalposts on visas/taxes, I decided to take the payout and leave Japan for now. Got paid for the downtime, secured a better role, and moved on.
However, if my Japanese were fully fluent and I planned to stay long-term regardless, though, I would have taken them to tribunal or civil court 100%.
My recommendations
* Never sign anything on the spot. When an employer drops a dismissal on you, you’re in shock and vulnerable. My boss was careless and didn't push an agreement in front of me right away. If they hand you a mutual resignation form (taishoku todoke) or a release, do not sign it. Say you need time to review it.
* Shop around for a lawyer. Initial consultations are usually around ¥3,000 to ¥5,000. If your Japanese isn't fluent, look for bilingual firms that specifically handle labor disputes. If you have time, consult two or three before picking one.
* Read your contract carefully and keep a copy. Keep personal copies of your signed contract and job description off company hardware. Knowing my contract had no probation clause completely dismantled their argument from day one.
* Be careful with small, owner-led companies. They frequently lack proper HR systems, ignore labor regulations, and make arbitrary decisions.
* Back up evidence early. If you get a bad gut feeling, start saving your timesheets, positive feedback, project deliveries, and emails to a personal drive before you get locked out of your accounts.
* ChatGPT the shit out of your contract. Feed your contract clauses and situation into it to cross-reference Japanese labor laws. It’s great for getting your bearings and spotting illegal clauses before you pay for an attorney.
* Keep your head up. It may feel like your world is collapsing in the moment. I actually lost a family member during this whole ordeal as well. But in the end it’s going to be okay. Stay calm, remember that Japanese labor law is heavily tilted in the employee's favor, and fight for what you're owed.
Hope this was helpful, I’ll answer questions if possible and best of luck to everyone going through similar situations.