Working With Freelancers in Japan? The Rules Have Changed

Japan has introduced a law to protect freelancers. If you work with independent contractors here, it changes how you operate.

The Freelance Act (特定受託事業者に係る取引の適正化等に関する法律) came into effect in November 2024. It introduces new obligations for businesses that engage freelancers, including:

— Clearly setting out the terms of each engagement in writing or electronically: the work, the fee, and the payment date.

— Paying within a fixed period — generally no later than 60 days after receiving the work.

— Taking measures to prevent harassment, and, for longer engagements, giving advance notice before ending the relationship.

Why It Matters for Overseas Companies

Many foreign companies in Japan rely on contractors for translation, design, sales support or administrative work — often on informal terms agreed over chat or email. Under the new rules, that informality becomes a compliance risk.

Japan is raising the floor for how contractors are treated. Make sure your engagements, templates and payment cycles are ready — and check the details with a specialist for your specific setup.

Natsuki Suzuki is the founder of BANTO, which provides back-office support — accounting, HR and payroll, and administration — to overseas companies and their Japan entities. She spent 15 years in Europe and brings both sides of the cultural equation to every engagement.