Overtime in Japan: What’s Legal, What’s Not, and How to Protect Yourself
In some countries, overtime rules are straightforward.
In the U.S., for example, the Fair Labor Standards Act (FLSA) divides employees into two clear categories:
Non-exempt — entitled to overtime pay
Exempt — not entitled to overtime pay
Simple.
Japan is different. Overtime (“OT”) here is far more complicated, sensitive, and often misunderstood. It’s so sensitive that when the Labor Standards Inspection Office visits for an audit, the first thing they check is overtime records.
If you ever get involved in a labor dispute, one of the first questions your lawyer will ask is:
“Have you been paid for all your overtime hours?”
This post will bust common OT myths, explain the law, show you how to calculate your pay, and give you tools to protect yourself.
What This Guide Covers
Why Overtime Is Such a Big Deal in Japan
The “36 Agreement” — Without It, No Overtime Is Legal
Who Is Eligible for Overtime Pay — The Managerial Positions Mystery
How Overtime Pay Is Calculated
Tracking Working Hours — and Why It Matters + Q&A
How Companies Try to Reduce Overtime
Wrap-Up: Protect Your Pay, Health, and Time
1. Why Overtime Is Such a Big Deal in Japan
For many years, unpaid extra hours — known as service overtime (サービス残業) — were not just common but expected.
Employees stayed late to “show commitment” or “help the team,” and employers simply didn’t pay for it. In some offices, no one left until the boss left.
This wasn’t just cultural; it was systemic. In many workplaces, staying late was considered part of being a “good employee.” Promotions often favored those seen as loyal enough to work late without complaint.
✅ The Turning Point: Death by overwork and Legal Reform
After several high-profile cases of Death by overwork (過労死 /karoshi) made national headlines, the government took action.
The Work Style Reform Law (働き方改革) rolled out in stages from 2019, introducing major changes:
Capped overtime: Generally, 45 hours per month / 360 hours per year, with limited exceptions.
Required accurate time tracking for all employees, including managers (excluding board members, since they’re not legally “employees”).
Increased penalties for unpaid overtime violations.
✅ Well-being Is Now Part of the Law
Mental health issues among employees are on the rise — not just in Japan, but globally.
Overtime caps aren’t only about pay; they’re a form of health protection.
If you regularly work long hours, your employer may be required to:
Arrange a health check with a company or industrial physician.
Adjust your workload or schedule to reduce strain.
Provide access to counseling or an Employee Assistance Program (EAP) for stress management.
2. The “36 Agreement” — Without It, No Overtime Is Legal
Under Japan’s Labor Standards Act, statutory working hours are:
8 hours per day
40 hours per week
If a company wants employees to work beyond that, they must sign a labor–management agreement with employee representatives. This is called a 36 Agreement (サブロク協定, named after Article 36 of the law).
Key points for foreign workers:
If your employer doesn’t have a valid 36 Agreement, they cannot legally require you to work overtime.
The agreement must specify the maximum overtime hours allowed.
Even with a 36 Agreement, overtime must stay within the government’s legal cap (with certain exceptions for busy periods).
Overtime Limits — Even with certain exception:
Overtime (excluding holidays): Maximum 720 hours/year
Overtime + holiday work combined:
Less than 100 hours in any single month
Average of 80 hours or less over any 2–6 month period
The normal monthly limit of 45 hours can only be exceeded for up to 6 months per year
🔹 Tip: Ask to see your company’s 36 Agreement.
3. Who Is Eligible for Overtime Pay — The Managerial Positions Mystery
In Japan, managerial positions (管理監督者) are exempt from overtime pay under the Labor Standards Act — but they are still entitled to extra pay for late-night work (10:00 p.m.–5:00 a.m.).
Here’s the tricky part: having “Manager” in your title does not automatically make you OT-exempt.
Legally, managerial positions refer to someone who:
Is closely aligned with top management
Holds major responsibilities
Has appropriate discretion from your company’s working-hour requirements
Receives pay reflecting those responsibilities
✅ Case Study: McDonald’s Japan (2008)
A store “manager” sued McDonald’s Japan for unpaid overtime, claiming he:
Had no real discretion over operations
Worked long shifts like regular staff
Followed the same scheduling rules as everyone else
The court sided with him, ruling that despite his title, he was entitled to OT pay.
✅ Why This Is So Hard to Judge
In 2024, I spoke with a labor attorney who said the bar for being classified as a true “manager” is rising. Today, the role must be almost on par with a board member — with real influence and the ability to give direct input to top management.
The problem? Even some CEOs misunderstand.
One of my former CEOs assumed that “anyone with subordinates” was a manager and refused to pay overtime to such managers — even when they had no real influence over company strategy.
For foreign employees, this misunderstanding can be expensive. You might accept a “Manager” title thinking OT is off the table — when in fact, you’re still eligible for it.
✅ Checklist: Are You Really an OT-Exempt “Manager”?
(If you answer “No” to most of these, you may still be entitled to overtime pay.)
Influence with top management – Do you participate in board-level meetings or provide input that shapes company-wide strategy?
Control over budget & staffing – Can you approve large expenses or hire/fire staff without multiple approvals?
Team management authority – Do you manage subordinates and have significant influence over their pay based on your evaluations?
Salary structure – Is your pay meaningfully higher than those you manage, reflecting your greater responsibility?
Independence over working hours – Is your pay not docked for arriving late or leaving early?
✅ If You’re Not Paid Overtime
Steps to take:
Gather evidence – Contracts, time sheets, email logs
Check work rules (就業規則) – Look for OT clauses
Raise internally – Speak to HR or your manager
Escalate – Contact a labor attorney or the Labor Standards Inspection Office (労働基準監督署)
🔹 Back pay: Unpaid OT can be claimed retroactively for up to 3 years.
4. How Overtime Pay Is Calculated in Japan
Overtime is based on statutory working hours: 8 hours/day, 40 hours/week.
Source: https://jsite.mhlw.go.jp/fukuoka-roudoukyoku/var/rev0/0119/7559/4.pdf
Legal Note: In Japan, statutory working hours (8 hours/day, 40 hours/week) are set by law. Your company’s regular working hours may be shorter — for example, 7.5 hours/day.
In that case, hours between your company’s limit and the statutory limit are not considered statutory overtime under the law.
✅ Monthly vs. Annual Salary Systems
Most Japanese companies use a monthly salary (月給制).
Many foreign firms in Japan prefer annual salary, which they believe covers overtime — but under Japanese law, that’s not enough. Overtime must still be paid unless the employee is legally exempt.
✅ Fixed Overtime Pay (固定残業代)
Some companies include a set number of OT hours in your salary. This is legal only if:
The hours and yen amount are clearly stated in the contract
Additional OT beyond that is paid separately
Sample Contract Wording:
Your annual salary will be JPY 6,000,000, payable in 12 equal monthly installments of JPY 500,000. This monthly salary includes fixed overtime pay of JPY 117,000, which corresponds to 45 hours of overtime work per month at an overtime rate of JPY 2,600 per hour. The remaining JPY 383,000 constitutes your base salary. If you work overtime beyond 45 hours in a month, such excess hours will be compensated separately in accordance with applicable laws and company policy.
＊For convenience, the hourly rate is set at JPY 2,600 in this example; actual calculation methods may vary by company.
🔹 Tip: If you work beyond the fixed hours in your contract, you’re entitled to extra pay — don’t assume it’s “all included.”
🔹Want to avoid common contract pitfalls? Read my post: Employment Contracts in Japan – What You Need to Know
5. Tracking Working Hours — and Why It Matters + Q & A
In Japan, accurate time tracking isn’t just policy — it’s the law. Employers may record your hours using:
IC card entry/exit systems
Computer log-on/log-off times
Manual time sheets
✅Common Overtime Questions
Q1: I heard you can’t get paid for “unapproved” overtime. Is that true?
A1: “Working hours” means time under the employer’s direction or control. Private time in the office doesn’t count.
Many companies require pre-approval. Without it, they may refuse payment — even if the work was real.
In the Resort trust case (Osaka District Court, 2005), the court rejected an overtime claim because the workload didn’t justify the hours claimed.
Q2: My workload made overtime unavoidable, but my employer says they didn’t “instruct” me.
A2: If the workload is unreasonable without overtime, this can count as “implicit instruction” and be eligible for OT pay.
Q3: My manager says overtime doesn’t count while I’m still “learning”.
A3: This is not a legal excuse. OT must still be paid.
Q4: My boss told me to record fixed hours regardless of actual work.
A4: That’s illegal. If HR or your manager refuses to fix it, contact a labor attorney or the Labor Standards Inspection Office.
Q5: Does commuting time count?
A5: No — commuting is not counted as work time under Japanese law.
Commuting is considered a preparatory act for workers and is distinguished from working hours.
However, as an exception, if a worker is instructed by the company to perform duties during the commute or if the company dictates the commuting method and effectively restricts the worker, it may be considered working hours.
Q6: I have health issues that make OT unsafe. Can I refuse?
A6: Possibly — employers have a duty of care. Discuss with them and provide medical proof if needed.
Q7: I can’t take a lunch break and eat while working. Should this count?
A7: Under Japanese labor law, a break means being completely free from work duties. If your employer requires you to keep working — for example, staying available for calls or handling urgent tasks — that time generally counts as working hours.
However, if you choose to work through lunch without being told to, the law still treats that time as a break, and it will usually be recorded as such. By law, you’re entitled to at least 45 minutes off if you work more than 6 hours, and 1 full hour if you work more than 8 hours.
💡 Real-World Note:
In some Japanese companies, break times are enforced to ensure compliance — some ring a bell to signal the start and end of lunch. It may feel a bit school-like, but it reflects a focus on synchronized schedules and legal requirements.
In more flexible or foreign companies, employees may manage their own time and occasionally combine eating and working.
Bottom line: If your break time doesn’t match your work reality, confirm with your manager or HR so you’re recording it correctly.
Q8: I want to leave early, so can I skip my lunch break?
A8: In Japan, break times are regulated by law — you can’t skip them as a regular practice. If you have a one-off personal or urgent reason, talk to your manager and get approval in advance. Your company may be able to adjust your schedule for that day, but it depends on their policies.
Q9: My employer wants time records in 1-minute increments. Is that required?
A9: Yes, if you’re manually recording hours.
Q10: I was “on call” for late-night IT tests but only watched TV while waiting. Can I claim OT?
A10: Waiting time’s classification depends on whether it’s under the employer’s instruction/control.
For test standby, if workers must start immediately upon instructions, it’s likely considered working hours. However, "likely" implies that some companies might have their own policy. Check with your manager or HR.
Q11: What is “deemed overtime” (minashi zangyō)?
A11: It’s a system where a company includes payment for a fixed number of overtime hours in your salary in advance. This is often applied to employees whose working hours are difficult to track — for example, sales staff who frequently visit clients or travel for business.
🔹 Note: Deemed overtime does not mean unlimited unpaid overtime. If you work more than the fixed hours covered by this allowance, your employer must still pay additional overtime wages.
Tip for Foreign Employees
Check your work rules (就業規則) so you know:
How to request OT approval
What counts as OT under company policy
Whether remote after-hours work is recognized
6. How Companies Try to Reduce Overtime
To comply with labor laws and support employee well-being, many companies in Japan use measures such as:
“Lights-out” policies – turning off office lights at a set time (e.g., 8:00 p.m.)
No-overtime days – requiring everyone to leave on time on certain days (e.g., every Wednesday)
IT system shutdowns – disabling access to work systems after a certain hour
Encouraging use of annual leave – actively reminding or even requiring employees to take paid days off. (e.g., a manager’s performance evaluation would be affected if their team members had poor leave usage.)
Flexible schedules or remote work – allowing adjusted start/end times or work-from-home options
Mental health support – providing counseling, stress management workshops, or employee assistance programs
7. Wrap-Up — Protect Your Pay, Health, and Time
Tracking overtime in Japan can be tricky — the line between working hours and non-working hours isn’t always clear.
For example, travel time to the airport for a business trip is usually treated like commuting and not counted as work, even if you leave home at 5:00 a.m. However, if you receive work instructions or the travel itself is part of your duties, it may count.
Under Japan’s Labor Standards Act, there’s a minimum baseline for what qualifies as work time. Companies can go beyond that — for instance, counting early-morning travel as work or covering it under deemed overtime (minashi zangyō).
Some workplaces define every scenario in detail, while others trust employees to act in the company’s best interests, focusing less on micromanaging and more on outcomes.
Call to Action:
Know your legal rights, understand your company’s policies, and don’t hesitate to ask HR or your manager when the line isn’t clear. Protecting your time is part of protecting your health.
Reference:
https://www.mhlw.go.jp/content/000463185.pdf
https://jsite.mhlw.go.jp/fukuoka-roudoukyoku/var/rev0/0119/7559/4.pdf
https://jsite.mhlw.go.jp/nara-roudoukyoku/content/contents/001474180.pdf
