Overtime in Japan 2026: What’s Legal, What’s Not, and How to Protect Yourself
(Original post August 11,2025, Updated April 2,2026)
Many foreigners arriving in Japan are surprised by how complicated overtime rules can feel.
Unpaid overtime is a clear violation of the Labor Standards Act, and employers are legally required to pay the full amount. You can claim unpaid overtime for up to three years (for work after April 2020).
Understanding the current rules can help you protect your pay, health, and work-life balance while navigating Japanese workplaces.
This article covers the practical realities foreign workers face in 2026, including common issues such as unpaid overtime, working hours records, harassment risks, and what employers must do to keep you safe and well.
What This Article Covers
1 Why Overtime Is Still a Big Deal in Japan
2 The “36 Agreement” and Your Employment Rules
3 Who Is Eligible for Overtime Pay — The Managerial Positions Mystery
4 How Overtime Pay Works
5 Tracking Working Hours and Practical Realities
6 Employer Obligations: Health, Safety, and Harassment Prevention
7 Q&A
8 Wrap-Up: How to Protect Yourself
1. Why Overtime Is Still a Big Deal in Japan in 2026
For many years, unpaid “service overtime” (サービス残業) was common in Japanese workplaces. Staying late was often viewed as a sign of dedication — even when there was little actual work left. This practice frequently harmed employees’ health, work-life balance, and overall productivity.
High-profile cases of karoshi (death from overwork) pushed the government to act. The Work Style Reform Law of 2019 introduced the first nationwide overtime limits, mandatory accurate time tracking, and stronger penalties for violations.
The law’s real goal went beyond rules: it aimed to shift Japan’s workplace mindset from rewarding long hours to focusing on efficiency and results. That cultural change remains an ongoing challenge today.
As of March 2026, these core rules from 2019 are still firmly in force. The government is discussing possible relaxations due to severe labor shortages, with Prime Minister Sanae Takaichi ordering a review. However, no legal changes have taken effect yet.
2.The “36 Agreement” and Your Employment Rules
Japan’s Labor Standards Act defines statutory working hours as 8 hours per day and 40 hours per week. Any work beyond these limits is considered overtime.
Working hours refer to the time when an employee is under the employer’s direction or supervision. This includes not only the time spent on actual tasks but also standby time (待機時間) — periods when you must remain available and ready to start work immediately upon request, even if you are not actively doing anything.
For example:
An IT staff member called in at night or on the weekend for system upgrades must stay ready to begin testing as soon as the queue opens — this waiting time usually counts as working hours.
An employee assigned to on-call duty after normal working hours, who must remain available to respond to urgent calls or issues, is also generally considered to be working during that period.
Breaks are excluded from working hours only if you are completely free from any duties.
If a company wants employees to work overtime, it must first conclude a written agreement with employee representatives (or a majority union). This is called the 36 Agreement (サブロク協定), named after Article 36 of the Labor Standards Act. The agreement must be filed with the Labor Standards Office and must clearly specify the maximum overtime hours allowed.
Without a valid 36 Agreement, your employer cannot legally require you to work overtime. Even when the agreement exists, all overtime must stay within the legal limits.
The standard limit is 45 hours of overtime per month and 360 hours per year.
In special temporary circumstances — such as an unforeseeable surge in workload — companies can extend these limits through the 36 Agreement. In such cases, overtime can go up to 100 hours per month (including holiday work), with an annual maximum of 720 hours.
However, the average must not exceed 80 hours over any 2-to-6-month period, and these extended limits can be used for no more than 6 months in a year.
Employers are required by law to notify employees of the agreement. Knowing the official limits that apply to you helps avoid misunderstandings later.
3. Who Is Eligible for Overtime Pay — The Managerial Positions Mystery
One of the biggest sources of confusion for foreign workers in Japan is the exemption for “managerial positions” (管理監督者). True managerial roles are generally not entitled to overtime pay, although they are still eligible for late-night work premiums (from 10 p.m. to 5 a.m.).
Simply having “Manager” in your job title does not automatically make you exempt. The law looks at the actual responsibilities of the role, not the title.
Labor attorneys often point out that the bar for being classified as a true managerial position is very high. The role must be close to board-member or director level, with real influence over company strategy, budget decisions, and operations.
Courts examine whether you have genuine discretion over your own working hours, significant decision-making power, and compensation that clearly reflects those higher responsibilities.
The famous McDonald’s Japan case (2008) is still a key example: a store manager won unpaid overtime because, despite his title, he had little real autonomy and followed the same rules as regular staff.
When a dispute arises, labor attorneys and the Labor Standards Inspection Office are very strict. They focus heavily on the actual role and responsibilities, not the job title.
Checklist: Are You Really an OT-Exempt “Manager”?
If you answer “No” to most of these questions, you may still be entitled to overtime pay.
Do you participate in board-level meetings or provide input that shapes company-wide strategy?
Can you approve large budgets or hire/fire staff without multiple approvals?
Do you have significant influence over your team’s pay or evaluations?
Is your salary meaningfully higher than those you manage, reflecting greater responsibility?
Your eligibility for overtime pay should be stated in your employment contract or promotion statement.
4. How Overtime Pay Works
Overtime pay in Japan is calculated based on your normal hourly rate and follows clear premium rates set by law.
Here’s a simple overview:
Fixed Overtime Pay (固定残業代) – The Most Common Trap for Foreigners
Many companies, especially foreign-owned ones, include fixed overtime pay in your monthly salary. This means a set amount is already built into your pay to cover a predetermined number of overtime hours. This amount is paid to you regardless of whether you actually work those hours or not.
This system is legal only if your contract clearly states:
The exact number of overtime hours covered, and
The specific JPY amount for those hours.
Example of proper 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 covers 45 hours of overtime per month. The remaining JPY 383,000 constitutes your base salary. Any overtime worked beyond these 45 hours will be compensated separately at the applicable premium rate in accordance with Japanese labor law and company policy.”
Note: JPY2080 x 45 hours x 125% OT premium rate = JPY117,000
Key advice for foreign workers
Never assume that the fixed amount covers everything.
If you regularly work overtime, keep an eye on your over time payment. If the payment on your payslip doesn’t make sense, ask HR for a clear explanation.
If anything is unclear, request details before you sign the employment contract to avoid future disputes.
5. Tracking Working Hours and Practical Realities
Working Time Tracking
Companies must accurately record every employee’s working hours down to the minute, usually via apps, IC cards, or time sheets. This applies to almost all employees, regardless of title (except board members). Records must be kept for 5 years by law.
Overtime Approval
Working hours include any time you are under your employer’s direction or control. Most companies require prior approval from your manager for overtime. If you cannot get approval in advance, request it as soon as possible afterward.
Break Time
You are legally entitled to at least 45 minutes of break after 6 hours of work, or a full hour after 8 hours. A proper break means being completely free from duties. If you must stay available for calls or tasks, that time may still count as working hours.
What You Should Do
Read your company’s Rules of Employment (就業規則) carefully to understand the approval process and policies for remote or after-hours work. If you have concerns about unpaid overtime or excessive workload, speak with your manager or HR first. You can also contact your local Labor Standards Inspection Office (労働基準監督署) — they keep inquiries confidential.
What to Prepare (if you need to raise an issue)
Your working time records
Employment contract
Rules of Employment
Evidence of communication (e.g., overtime approval requests or manager instructions)
6. Employer Obligations: Health, Safety, and Harassment Prevention
The overtime rules exist to prevent overwork and protect employee health. Employers have a duty of care — they must monitor workloads and safeguard your well-being.
Forcing employees to work excessive overtime or refusing to approve legitimate overtime for assigned work violates the Labor Standards Act.
In addition, employers are legally required to offer a doctor’s interview guidance (face-to-face health consultation) when an employee exceeds 80 hours of overtime per month (including holiday work) to protect their health."
Important: Document the situation in chronological order and keep email or written communication as evidence.
7. Q&A – Common Questions from Foreign Workers
Q1: Can my company refuse to pay “unapproved” overtime?
A1: Working hours include any time under the employer’s direction or control. Many companies require prior approval, but if the workload makes overtime unavoidable, it can still qualify as “implicit instruction.”
Q2: My boss says overtime during “training” or “learning” doesn’t count. Is that true?
A2: No. Overtime must be paid regardless of whether you are still learning the job.
Q3: Does commuting time count as working hours?
A3: Usually no. However, if the company gives you work instructions during the commute or restricts how you travel, it may count as working hours.
Q4: What if I eat lunch at my desk or work through my break?
A4: Legally, a proper break requires being completely free from work duties. If you must stay available for calls or tasks, that time may still count as working hours. You are entitled to at least 45 minutes after 6 hours, or a full 1 hour after 8 hours.
Real-world tip: In practice, many people eat lunch at their desk. However, for your own well-being and to properly refresh, it’s better to step away from your workstation whenever possible. Employers also prefer you take a real break — it helps prevent burnout and keeps you productive. Or you simply don’t work while you are at desk.
Q5: I have health issues that make overtime unsafe. Can I refuse?
A5: Yes, you can discuss this with your employer. Employers have a duty of care for your health and safety. Provide medical documentation if possible. Note that in companies with 50 or more employees, there is usually a company doctor (産業医 / industrial physician) you can consult.
However, in smaller offices with fewer than 50 employees, an industrial physician is not required by law (though the employer still has a general duty of care). In such cases, consider speaking with HR, your personal doctor, or contacting your local Regional Occupational Health Support Center (地域産業保健センター) for advice.
8. Wrap-Up
Japan’s overtime rules continue to evolve, but the core framework from the 2019 Work Style Reform Law remains firmly in place. The goal is not just to limit long hours, but to encourage a shift toward working smarter and more productively.
The most practical approach for foreign workers is simple:
Understand both the law and your employment contract
If you regularly work overtime, carefully monitor your overtime payment amount and hours.
Raise concerns early with HR if something feels off
If needed, consult a labor attorney or your local Labor Standards Inspection Office. Unpaid overtime can generally be claimed for up to three years.
By knowing your rights and tracking your time, you can contribute effectively while protecting your health — and make the most of your life in Japan.
If you have experiences, tips, or questions, please share them in the comments.
And if you found this article helpful, please consider sharing it with friends, family, or colleagues who are living in or planning to move to Japan!
References
Work Style Reform Law Overview (MHLW Official Guide)
Overtime Regulations & 36 Agreement Explained (Fukuoka Labor Bureau Guide)
Guidelines on Working Hours Management & Compliance (Nara Labor Bureau)
See also:
Japan's Mandatory Health Checkups for Foreign Workers: What's Required, Costs, and English Support
How to Read a Japanese Payslip & withholding tax slip - What Foreign Workers Need To Know.
