Insured person of Japan Employment Insurance
Japan Employment Insurance is a mandatory social insurance, it is important for business operators to determine whether their employees are eligible for Employment Insurance, as well as labours working in Japan should determine whether they are required to contribute to the Employment Insurance.
In this passage, referring to the information from the Japan Ministry of Health, Labour and Welfare, Kaizen will briefly introduce the insured person regarding the employment insurance, summarize the classification of participants and non-participant for the reference to current and potential clients. In addition, Kaizen do provide services on Japanese social insurance service and payroll service, please contact our consultants for further information.
- Japan Employment Insurance Participants (Insured person)
Employment insurance is a kind of social insurance which is used to provide livelihood protection for the unemployed, as well as to assist labours who wish to receive education and training favourable to employment, also for those who have to temporarily stop working due to raising children or taking care of the elders.
In principle, all labours employed by an applicable place of business are employment insurance, but labours are not participants if they meet the requirements of Article 4 or 6 of the Employment Insurance Act, or Article 3-2 or 4 of the Regulations for Enforcement of the Employment Insurance Act. Once a labour meets the conditions of the insurance, he/she is mandatorily recognized as a participant of Employment Insurance.
- Conditions of Participation
Regardless of the size of the company, labours who meet all the following conditions are, in principle, employment insurance participants.
(1)
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Working 20 hours a week
Labours are required to work no less than 20 hours in a week. If a labour’s weekly working hours temporarily exceed 20 hours in a special period, such as a business peak season, but the weekly working hours stipulated in the employment contract are less than 20 hours, it does not meet the requirement of “working 20 hours a week?
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(2)
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The expected duration of employment is more than 31 days.
Except for situations in which it is clear that the duration of continuous employment is less than 31 days, all other situations are considered as “expected duration of continuous employment is more than 31 days? If the expected duration of continuous employment is less than 31 days at one time but it is possible that 31 days will be reached in the future due to the renewal of the employment contract, etc., the employee shall become a participant at the point in time when the above possibility appears to be realized. |
- Non-Participant of Japan Employment Insurance
According to the Employment Insurance Act, Article 6 and Regulations for Enforcement of the Employment Insurance Act, Article 3-2 and 4. a person who meets any of the following criteria is not a participant of the employment insurance (not applicable to a labour who is a day worker).
(1)
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Required working hours are less than 20 hours a week
Labours are not participants if the required working hours in a single week are less than 20 hours. The term “weekly required working hours?refers to the number of hours a labour is normally required to work in a week as stipulated in the employment rules or the employment contract.
If the required working time is measured in months, the required working time for a single week is the result of 12 out of 52; if the required working time is measured in years, the required working time for a single week is the result of dividing the time by 52; if it is difficult to determine the required working time, the average required working time shall be calculated on the basis of the labour’s work performance.
From January 2022, a new system called “multijob holder?(in Japanese, ?#12510;ルチジョブホルダー? has been implemented. A worker aged 65 or older who has worked less than 20 hours in a single week, and is employed by two or more employers, with the total number of hours worked in a single week with all employers exceeding 20 hours, he/she can voluntarily participate and become an employment insurance participant. Once the above labour becomes a voluntary participant, all employers shall pay the employment insurance premiums for the labour.
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(2)
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Expected duration of employment is less than 31 days
Labours who are employed by the same employer’s applicable place of business and are expected to be employed for a continuous period of less than 31 days are not considered participants of employment insurance.
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(3)
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Seasonal Employment
Seasonally employed workers who are employed for less than 4 months, or who are required to work 20 to 30 hours per week, are not considered as participants of employment insurance.
If a seasonal worker whose employment period does not exceed 4 months is continuously employed by the same employer after the scheduled employment period, he/she becomes a participant from the date when the original employment period is exceeded. If the total duration of the new employment period and the original employment period does not exceed 4 months, he/she is still not a participant.
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(4)
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Students
In principle, students are not participants, except for the following individuals as defined in the School Education Act:
(a) Students who expected to be graduated are employed prior to graduation under an applicable place of business and plan to continue working for the business after graduation.
(b) Students on Leave of Absence
(c) Students of "night school" or "evening school"
(d) Other persons specified by the Employment Service Centre (Hello Work) Director
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(5)
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Crew Members
Crew members as stipulated in the Mariners Act, Article 1 and those becoming reserve crew members are not participants when they are hired to work as crew members of a fishing vessel.
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(6)
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Employed in Government Service
Based on the law, ordinances, and regulations, employees of the national, prefectural, or municipal government may apply to become a non-participant of employment insurance after leaving their jobs with the following procedures, if they have received wages and allowances that are superior to employment insurance job applicant allowances and job promotion allowances. (a) Employed by the national government or specific independent administrative institutions (National Archives, National Statistics Center, National Printing Bureau, The Japan Mint, etc.) and who are not non-permanent employees do not need to apply, as they are not participant.
(b) Employees of a prefectural government should apply to the Minister of Health, Labour and Welfare for approval as non-participants through the head of the prefectural government.
(c) Employees of the municipal government should apply to the Minister of Health, Labour and Welfare for approval as non-participants through the head of the prefectural government.
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- Special Occupations and Types of Work
In addition to the above-mentioned categories of non-participants listed in the third point, labour engaged in certain special occupations and work types should be considered as non-participants based on whether the actual work possesses the characteristics of a labour. The following are some examples of such cases:
(1)
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The directors and auditors of a corporation are usually non-participants, however, when they are considered as labour (e.g., they have no right to execute operations, or their remuneration is less than labour salaries, etc.), an employment relationship is deemed to exist, and they become a participant.
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(2)
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Family members living with the employer as employees are not participants in principle, however, they are considered to be labours when it is proved that they follow the instructions of the employer, obtain the same employment status and wages as other employees, and are not in the same position of interest as the employer.
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(3)
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A household servant (in Japanese, ?#23478;事使用人? is not a Labour under the Labour Standard Act and therefore is not an employment insurance participant. If the household servant is employed by an applicable place of business and does not perform household duties as his/her job, he/she becomes an employment insurance participant.
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(4)
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Labours (except household servant) who are employed by the garrison are considered to be indirectly employed by the Ministry of Defense of Japan, although they are employed by the governmental organization, they are not applicable to point 3(a)(iii) and are employment insurance participants.
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(5)
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Technical intern trainees (visa holder of technical intern training (i)(a), technical intern training (i)(b), technical intern training (ii)(a), or technical intern training (ii)(b)) who are invited to enter Japan to conduct training activities in Japan, having an employment relationship with the inviting organization and become a participant. However, attending lectures after entering Japan which are not related to employment contracts does not constitute an employment relationship with the inviting organization during the period of attendance, thus, the person is not an employment insurance participant.
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(6)
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People working from home are, in principle, employment insurance participants, to the extent it can be recognized that their working arrangements, working hours, working rules and other conditions are identical to those of workers who work at their workplaces.
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(7)
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A dispatched worker who is registered and employed by a dispatching company is an employment insurance participant when the dispatched worker works or expects to work at least 20 hours a week. If the expected working hours are less than 20 hours, he/she is no longer qualified as a participant. After losing the qualification as a participant, if the dispatched worker wishes to work 20 hours a week, he/she will become a participant again.
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(8)
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Labours who are absent from work for a long period of time, if the employment relationship with the employers continues, they will remain as employment insurance participants, even though the employers are not paying their wages
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- Types of Participants
There are four types of employment insurance participants: generally insured persons; continuously insured elderly persons; specially insured persons in short-term employment and insured day workers.
(1)
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Generally Insured Persons (in Japanese, ?#19968;般被保険者?
Generally insured persons refer to participants who are under 65 years old and are not continuously insured elderly persons, or specially insured persons in short-term employment, or insured day workers.
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(2)
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Continuously Insured Elderly Persons (in Japanese, ?#39640;年齢継続被保険者?
Continuously insured elderly persons refer to participants who are aged 65 years old and are not specially insured persons in short-term employment or insured day workers. From 1 Jan 2017, regardless of whether a person has been continuously employed before age 65, a person continuously employed after age 65 is automatically recognized as a continuously insured elderly person.
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(3)
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Specially Insured Persons in Short-Term Employment
Specially insured persons in short-term employment (in Japanese, ?#30701;期雇用特例被保険者の求職者給付? refer to participants who are employed on a seasonal basis and do not meet the requirements of being employed for a period of not more than 4 months as well as the requirement of working 20 hours to 30 hours per week.
Participants who have been continuously employed by the same employer for one year or more as a specially insured persons in short-term employment will become a generally insured person on the day when the employment period exceeds one year, or a continuously insured elderly persons on the day of reaching 65 years old.
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(4)
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Insured Day Workers
Insured day workers (in Japanese, ?#26085;雇労働被保険者? refer to participants who are employed on a daily basis and those who are employed for a period of less than 30 days. Day workers who meet any of the following conditions should submit a “Report on Acquisition of Eligibility?to the employment service centre within 5 days from the date fulfilling the conditions, and after the director of the employment service centre confirms the application, they will become an insured day worker: (a) Residing in the covered area (special ward, an area of a municipality in which a Public Employment Security Office is located, or in the entire area or parts of neighbouring municipalities designated by the Minister of Health, Labour and Welfare) and employed at an applicable place of business.
(b) Residing outside the covered area and are employed in an applicable place of business inside the covered area.
(c) Residing outside the covered area and are employed in an applicable place of business outside the covered area which has been designated by the Minister of Health, Labour and Welfare based on the situation in the day labour market and other circumstances.
(d) Not meeting any of the above criteria but employed at an applicable place of business with the permission of the director of the Public Employment Security Office at the place of residence.
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Remarkably, insured day workers are regarded as generally insured persons when they are employed by the same employer with an employment period of 18 days in each of the 2 consecutive months. Kaizen with experienced team of professionals, providing services of company formation, registration, and application for several types of permits/licenses and subsequent maintenance, tax planning and auditing services, please consult our consultants for more details.
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