Voluntary and Involuntary Termination in Japan: What to Expect

Resigning in Japan involves more than handing in a notice. Labor laws, visa requirements, and cultural expectations create a structured process. For expats, additional steps like visa updates and pension transfers add complexity. Mishandling these can delay your next job, affect insurance coverage, or even jeopardize your legal status.

Drawing on my HR experience, this guide walks you through every step: planning your exit, managing paperwork, and preparing for your next chapter.

This blog covers:

1.        Voluntary Termination (Resignation) : When You Choose to Leave

2.        Involuntary Termination: When the Company Decides

Let’s dive in.

1.  Voluntary Termination (Resignation): When You Choose to Leave

If you decide to leave your company, here’s what you can expect:

Step 1: Before Job Hunting – Understand Visa Implications (for Engineers/Specialists in Humanities/International Services Visa [技術・人文知識・国際業務] holders)

1.        Notification: If you resign or change employers, you must report the change to Immigration office within 14 days.

a.        Resignation with New Job: file "Notification of Contract Termination and Signing of a New Contract.”

b.        Resignation without New Job: file "Notification of Termination of the Contract."

If you resign voluntarily, it is generally advisable to find and start your next job within about three months. For this reason, it is recommended to secure your next job before leaving your current one whenever possible.

c.        New Job After Resignation: file "Notification of Signing a Contract with a New Organization."

2.        Visa Application Patterns: Work closely with your new HR.

• Pattern 1: Valid Visa, Same Job Type: Apply for a Certificate of Employment Eligibility (就労資格証明書) to confirm your new role aligns with your visa. This simplifies future renewals.

• Example: An expat with a 3-year visa for translation at Company A transfers to Company B for similar work. Without a Certificate of Employment Eligibility, their next visa renewal may face scrutiny, risking denial.

• Pattern 2: Visa Nearing Expiry, Same Job Type: Renew your visa, similar to a new application, if less than 6 months remain.

• Pattern 3: Different Job Type: Apply for a visa change, as your current visa may not cover the new role.

Step 2: Plan Your Transition - Before giving notice:

• Review your notice period: Usually 30 days, sometimes longer for management, 2 weeks legal minimum. You can obtain the information in the rules of employment.

Consider project timelines or transition needs. If resigning due to issues like harassment, you may prefer a shorter notice.

• Paid time off: Verify unused paid time off. Some companies buy it out; others let you use it before leaving. Plan this to bridge to your next role.

• Coordinate your start date with your next employer.

• Confirm if you need to relocate for the new job (housing, moving, city hall registration).

• Prepare your reason for resignation: Be prepared for retention offers (e.g., salary increases or talks with leadership). Solid reasons (e.g., career growth, new interests, or workplace issues) clarify your stance. Decide if you’re open to negotiation.

• Some companies have a policy that you must be an active employee on the bonus payout date to be eligible. If you submit your resignation before the payout date, you may lose your bonus eligibilityeven if you worked the full period.
  Be careful and check your company's rules before giving notice.  

Once you have a clear plan, move quickly. Delays can complicate both your current and new job transitions.

Step 3: Submit a resignation request （退職願）

After confirming all details:

• First, inform your manager of your intention to resign with a written resignation request (退職願).While phone or email notification may be acceptable, resigning face-to-face is generally recommended in Japan.
  
  

Writing helps both you and the company keep an official record of when your resignation process started. It also documents your decision clearly, if the company tries to aggressively retain you or pressure you—for example, by threatening damages caused by your resignation, which is illegal.

• After notifying your manager, discuss transition matters such as handover items and remaining paid leave. Together, confirm your last day on premise (final working day) and official resignation date.

• Once agreed, submit a formal resignation letter (退職届) with the finalized resignation date. This way, you leave clear, written evidence of the agreement—and avoid later disputes or unexpected changes.

🔗 Tip:
If you are uncomfortable communicating directly with your manager or HR, you may consider using a resignation agency (退職代行サービス). Legally, your employer cannot deny your right to resign.

Step 4: Handle Exit Paperwork

Before last day on premise:

✅ 退職所得申告書(Resignation payment Income Declaration): If applicable. HR should give you a form.

✅ Pension Book (年金手帳)：if submitted during hiring

·      Contact Information: Provide a forwarding address, e-mail and phone number for post-resignation documents (e.g., tax forms).

On/After Resignation Date:

✅ 退職証明書 (Resignation Certificate): In many cases, your new employer will require it

✅ 離職票 (for unemployment insurance): Needed for unemployment benefits (失業保険). Unnecessary if joining a new employer immediately.

✅ 雇用保険被保険者証 (Unemployment Insurance Certificate)

✅ 源泉徴収票 (Year-End Tax Certificate): Mailed after your final payroll, used for tax filing. Your new employer will need it.

📈 Double-check your final paycheck:

• Salary proration

• Unused paid leave payout

• Social insurance adjustments (you may be deducted 2 months' worth in some cases)

Step 5: Health Insurance, Pension and Tax - Post-resignation formalities ensure continuity of benefits and compliance.

• Health Insurance:

(With New Job)

Align termination and start dates to avoid coverage gaps. Using paid leave (有休消化) can bridge the transition while maintaining insurance. HR at both companies handles the transfer.

        (Without New Job)

Þ   Enroll in National Health Insurance (国民健康保険) at your municipal office within 14 days of your resignation.

Þ   Or choose Voluntary Continuation (任意継続) of your former company insurance for up to 2 years. To apply, visit the health insurance provider (or apply by mail) within 14 days.
Important: Your employer must first submit a "loss of qualification" notice (喪失届) to the provider. If you plan to continue the insurance, ask HR to submit it as soon as possible.

✅ Tip: Comparison: National Health Insurance vs. Voluntary Continuation
Both offer similar benefits.
Voluntary continuation includes additional benefits like free health checkup/year and maternity allowances, but you must pay the full premium (previously split with the employer). National Health Insurance premiums vary depending on the municipality. Be sure to check the actual costs at your city hall before deciding.

• Pension:

　　（With New Job）

Submit your pension booklet or a copy of your pension number to the new employer for seamless transfer to their plan.

　　（Without New Job and, Resident in Japan）

Switch to National Pension (国民年金) at the municipal office within 14 days from resignation.

          (Leaving Japan-Lump-Sum Withdrawal) Expats leaving Japan can claim a pension refund (脱退一時金) if:

• Non-Japanese nationality.

• 6+ months of contributions.

• No Japan address.

• Claimed within 2 years of losing insured status.

• Note: Claiming this forfeits future Japan pension eligibility.

• Resident Tax:

  If resigning mid-year, unpaid tax will be billed directly to you. Some people use their resignation payment (退職金 or final paycheck) to cover the remaining resident tax for the year.

Step 6: Final Tasks - Wrap up loose ends to leave professionally:

• Exit Interview: Some companies conduct exit interviews to discuss your reasons for leaving, feedback on leadership, or team dynamics. Be honest but constructive.

• Return Company Property: Submit laptops, phones, keycards, timecards, unused business cards, Company badge…etc.

• Submit Expenses: File any outstanding reimbursement claims (e.g., travel costs) before your last day.

• Non-Disclosure Agreement (NDA): NDAs remain in effect post-termination. Review your contract to avoid violations.

• Internal/external announcement: Toward your final working day, there will typically be announcements made both inside and outside the company regarding your resignation.
  
  

  Customs may vary by company, but it is common to send a brief email on your last working day, thanking your colleagues for their support.

Real Story: There was an engineer who had been unhappy at work and eventually decided to resign. Later, he posted negative comments about the company on social media, which were discovered by a current employee.
Be careful—these kinds of posts often come to light.
In Japan (and in many other countries), it is common for employment contracts and company work rules to prohibit negative public comments both during and after employment. We contacted the former employee and reminded him that his post violated the agreement he had signed. He promptly deleted the comment.

Even after leaving, protecting your professional reputation is important. Think carefully before posting online.

2.Involuntary Termination: When the Company Decides

(First of all) Visa implication:

 If a foreign worker resigns through a resignation recommendation, their work visa status is generally maintained as long as the visa remains valid. However, they must continue job hunting after resignation. If the expiration date of their current visa is approaching, they may also need to consider switching to a short-term stay visa.

 ———————————————————————————

In Japan, involuntary terminations are rare because labor laws strongly protect employees.

Yet, here is how it happens in Japan.

Common Reasons for Involuntary Termination:

• Company Performance: In cases of restructuring/job elimination or layoffs, companies may pursue termination. However, under Japanese labor law, dismissal requires meeting four strict conditions: Objective rational reason, Socially acceptable reason, Proper procedure, Effort to avoid dismissal.

Even so, legally valid dismissal remains extremely difficult in Japan.
Many companies prefer resignation recommendation (退職勧奨) instead of direct dismissal.

• Individual Performance: If an employee’s performance declines, their manager conducts evaluations, and HR reviews whether the assessments are fair and not subjective.  Typically, the company will start a Performance Improvement Plan (PIP), including steps like more frequent progress reviews, additional training, or mentoring. In Japanese companies, transferring the employee to another position to find a better fit is also a common practice. (e.g. from sales to HR)
  
  After completing a PIP, the company may proceed with a resignation recommendation, if there is no sufficient improvement.

• Behavioral Issues: In cases of serious misconduct, such as fraud or severe harassment, immediate dismissal is possible even under Japan’s strict labor protections.

Other behavioral concerns—such as launching a negative campaign against the company or leadership, company cultural misfit, or emotional/anger management issues—are typically handled differently. HR will conduct a formal investigation and follow appropriate procedures to determine the next steps, which may include additional mentoring, training, transferring or a resignation recommendation.

Step 1: Know Your Rights (Resignation recommendation)

If you face termination:

• Be sure to take notes on the reason for the resignation recommendation. You may need it in case you want to consult a labor attorney. Or request the reasons in writing.

• Review your PIP records.

• Understand what severance package is offered. Typically, it may include severance payment, (or salary continuation during leave), payout for unused paid time off, and sometimes outplacement support services.

• Take time to review any agreements before signing.

• Since it is “a recommendation”, you have the right to refuse to sign. If you decide to refuse, ask whether there would be any changes to your job duties, position, or salary.

Consult a labor Attorney or Hello Work (public employment service), if resignation recommendation feels unfair.

✅ Tip: Salary continuation allows you to remain an active employee with full salary and benefits while you focus on job hunting. By contrast, severance payment is typically a one-time lump sum, and your termination date would come relatively quickly. From a visa perspective, salary continuation can be a better option, as it helps you maintain your employment status during the job search period.

Step 2: Handle Exit Paperwork, if you agree to resign

Similar to voluntary resignation:

✅ Signed severance agreements

✅ 退職証明書 (Proof of Employment): There is no need to include the reason for termination. Typically, it only lists your name, department/title, and final compensation details.

✅ 離職票 (For unemployment benefits): Even if you agree to resign, you may still qualify for unemployment benefits under "special reasons," which can expedite your benefits process. Take your 離職票 to Hello Work, and after the required waiting period, your unemployment benefits can begin.

The rest of the exit paperwork is the same as with a voluntary resignation. Refer to the "Without New Job" section for details.

 There is usually no exit interview, and you do not need to worry about task transitions or handling announcements.  If there are any special requests (such as how you want communication handled), let the company know.

Because the situation is sensitive, the company is expected to handle the termination process as carefully and appropriately as possible.

Regarding the return of company property, be sure to ask them how and when they would like you to return items such as your laptop, ID card, or mobile phone. If you feel uncomfortable returning to the office, ask if you can send back company property by courier.

🛃 Moving Forward

Whether you leave voluntarily or involuntarily, it's important to focus forward. Job changes can happen to anyone, at any time—what matters most is how you move on and grow from the experience.

✅ Checklist After Leaving:

• Notice to immigration office/ Request necessary certificates for visa or future employers.

• Register for unemployment benefits (失業手当) if eligible.

• Update your health insurance and pension.

• Settle resident tax obligations.

• Reflect on next steps calmly. If you have interviews lined up, there is no need to proactively mention the reason for your termination, especially in cases of involuntary termination. HR will not disclose the details of your departure to outside parties.

Real Story: When One Door Closes, Another Opens

One employee had stayed in a job he didn’t enjoy for years, simply because it still felt “comfortable.” When he was recommended to leave, it finally pushed him to pursue his true passion—something he had been hesitating to try: earning an MBA. He changed his visa status, improved his Japanese skills, and used his severance payment as tuition.After just one year and ten months, he returned to the same industry—but this time with a higher position and greater confidence.

I've seen many people react with fear or uncertainty initially, but within just a few months, most found new opportunities and moved forward even stronger than before.

Wrap up

Personally, I believe in job mobility, whatever the reason may be.
If you're unhappy, dealing with a difficult boss, seeking a better company culture or environment, looking for new challenges, or even facing a recommended resignation, it might be time to move on.

When you move, new opportunities start to happen.