Worker dispatching business and social insurance in Japan
Assumed that you are operating worker dispatching company ( Haken kaisha ) in Japan.
You need to know legal information related to Act on worker dispatching business.
So in this page, I will illustrate it.
Worker dispatching business operator ( haken kaisha = Haken moto = 派遣元 ) needs to enroll its Dispatched workers ( haken shain) in shakai hoken ( social insurance) and koyo hoken ( employment insurance ).
” shakai hoken ” include employee’s health insurance (健康保険 = kenko hoken ) and Employee’s pension insurance = kosei nenkin hoken = 厚生年金保険.
” koyo hoken ” include Labor insurance (= rodo hoken = 労働保険) and Industrial accident compensation insurance (= rosai hoken = 労災保険)
You have legal obligation to cover your employees ( Dispatched workers are your employees ).
When you file for permission to operate haken kaisha, you need to report on status of enrollment of your dispatched workers.
In the case you do not have any employees at the time of filing for permission of worker dispatching undertakings, you need to promise that you will enroll your workers in social insurance and labor insurance when you have hired any employees eligible for such insurance.
And you need to clarify your promise on application form.
As for employee’s health insurance ( kenko hoken ) and employee’s pension (kosei nenkin)
In the case you are operating worker dispatching business in Japan, you need to cover your all employees.
However, if working hours per a day of your employee is 3/4th or less of full-time worker’s
If working hours per a week of your employee is 3/4th or less of full-time worker’s
If monthly working days of your employee is 3/4th or less of full-time worker’s
Or She is expected to work within 2 months.
you do not need to cover the employee by employee’s health insurance and employee’s pension.
Employment insurance ( koyo hoken )
In the case your dispatched worker is expected to work for 31 days or more continuously and at the same time she is expected to work for 20 hours per a week, you need to enroll her in employment insurance.
In the event your dispatched worker is covered by this employment insurance, if she has lost her job, there are possibilities that she can receive unemployment benefit ( Shitsugyo kyufu).
In order to cover your worker in employment insurance, you need to submit notification paper to Hello Work (public employment security office).
You need to submit this paper within 10 days of hiring the first eligible employee.
As for worker’s accident compensation insurance ( = rosai hoken )
In the case your dispatched worker is injured or killed during working or commuting, this rosai hoken can compensate its damage.
You need to pay insurance premium.
Even if the number of working day is one, this insurance can cover it.
Even if your employee is part-timer or day worker, you need to cover the worker.
Toroku gata haken and Joyo gata haken.
1）Toroku gata haken = 登録型派遣（一般労働者派遣）= dispatching based on registration.
Assumed that a person wants to work as dispatched worker.
In the case of toroku gata haken, you ( haken kaisha ) registers her as potential dispatched worker.
Then if you have found suitable job for her and she accepted it, you and she enter into employment contract.
Then you are liable to pay her salary.
This is general way than Joyo gata.
2）Joyo gata haken = regular basis dispatching
In the case of joyo gata haken, she and you enter into employment contract before she has accepted job offer.
So, even if you have not found suitable job for her, you need to pay salary for her.
Assumed that she has started as dispatched worker in Y company.
After one month, she has lot her job in Y company.
In this case if she is a regularly employed dispatched worker ( = 常用型派遣 = Joyo gata haken )
As for Hiyatoi haken = dispatched one day worker.
Basically hiyatoi haken is prohibited by law.
In the case period of employment contract between you and she is 30 days or less, this contract is included in hiyatoi haken.
However, content of work falls under either of below, hiyatoi haken is legal.
Manufacturing of softwareソフトウェア開発／design of machinery機械設計／operation of office equipment事務用機器操作／interpreter通訳、翻訳、速記／secretary秘書／filingファイリング／調査／accounting財務処理／making of document取引文書作成／デモンストレーション／添乗／guide受付・案内／institution研究開発／事業の実施体制の企画、立案／making of book書籍等の制作・編集／design of advertisement 広告デザイン／OAインストラクション／sales セールスエンジニアの営業、金融商品の営業
And even if her job does not fall under above, if she falls under either of below, hiyatoi haken is legal.
A．If she is 60 years old or more.
B．If she is student.
C．If she has main job other than dispatching work and annual amount of her income from her main job is 5 million yen or more.
D．If annual amount of income of her household is 5 million yen or more and the amount of income of her spouse is larger than her.
In order to confirm if she can work as daily basis dispatched worker, you need to look at reliable document.
So, in the case of D, you need to inspect the content of withholding tax slip of her spouse.
Measures to stabilized employment of dispatched workers.
According to amendment of act for securing proper operation of worker dispatching business, dispatched workers are categorized into classed below.
And based on these categories, you need to conduct necessary measures.
Indefinite term dispatched worker ( muki koyo haken rodo sha = 無期雇用派遣労働者)
Definite term dispatched worker (有期雇用派遣労働者)
In the case of definite term dispatched workers, situation of her employment is unstable.
So, you need to take necessary action to stabilize her future employment.
Assumed that she is expected to work in same division for one year or more.
If she has intention to work in the same division after end of current employment contract period, you need to make effort to stabilize her employment.
Assumed that she is expected to work in same division for 3 years or more.
In this case, you have obligation to conduct necessary measures to stabilize her employment.
If you know she will work in same division for more than one year or three years ( even before one or three years are passed), you have obligation to make effort or conduct necessary measures to stabilize her employment.
Then you need to record result of measures in ledger ( haken moto kanri daicho ).
Measures to stabilize her employment.
At first, ① You need to ask client to hire her as employee directly.
If the client company has hired her, she become its employee.
It it better to ask the client by paper. ( to sustain proof )
Then, if the client does not hire her, ② you can introduce her other work place.
In this case, she can brash up her skill.
Or ③ You can hire her as your employee.
Or ④ You need to conduct other measures （ shokai haken haken or salary paid training）
You may want to avoid this obligation by reducing employment term to less than 3 years.
However, such activity is unsuitable to renew your license.
Assumed that you are operating worker dispatching business in Japan.
So, you are called ” haken moto “.
In the case you dispatch a worker ( she is dispatched worker = haken shain ) to client (it is called “haken saki” ), you have obligation to receive notification from your client of date of conflict( teishokubi ).
( excluding in the case she is indefinite term dispatched worker or her age is 60 or more ).
Without this notification, you cannot enter
into worker dispatch contract ( haken keiyaku. Contract between you and client ).
Because, she cannot work in same division (division = ka = 課. like sales division =
Eigyo ka, general affairs division = somu ka.)
Because, she ( excluding in the case she is indefinite term dispatched worker or her age is 60 or more ) can not work in the same division for 3 years or more.
And moreover, client cannot accept dispatched worker in same office ( office = jigyosho =事業所 ) for more than 3 years.
If other dispatching operator dispatched a worker named Nancy worked in client company for 2 years until December 31, 2016,.
And you dispatched a dispatched worker named John to this company in January 1, 2017.
In this case, BASICALLY John can work in this office only for one year.
Because 2 years of Nancy + 1 year of John can not exceed 3 years.
So, in this case, client needs to notify you end of 2017 as date of conflict.
If client does not notify you this date, you cannot know the date.
So, client has legal obligation to notify this date before you and client enter into worker dispatch contract.
In the case client does not fulfill this obligation, if dispatched worker makes application for employment, ( without consent of client ) client needs to hire dispatched worker as employee.
So, client needs to pay salary for her.
This process is called “rodo keiyaku moshikomi minashi seido”.