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A Guide to Attaining Work Visas in Japan: Eligibility, Essentials and Key Insights

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A Guide to Attaining Work Visas in Japan: Eligibility, Essentials and Key Insights

blog- A Guide to Attaining Work Visas in Japan

Japan is an attractive destination for international talent, known for its advanced economy, cutting-edge industries, and unique cultural appeal. However, working in Japan as a foreign national is not possible without complying with the country’s strict immigration and labour regulations. A valid work permit and visa are required by law before engaging in any paid employment.

This guide provides a comprehensive overview of Japan’s work permit requirements, including visa categories, eligibility criteria, application processes, compliance obligations, and how employers can navigate these regulations efficiently.

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Why Japan Require Work Permits?

Japan’s approach to immigration is rooted in its economic priorities and demographic landscape. The requirement for work permits exists primarily to protect employment opportunities for Japanese citizens. By mandating foreign nationals to obtain specific work authorisations, the government ensures that only sectors facing genuine skill shortages open up to foreign expertise.

Moreover, Japan faces a significant demographic challenge—an ageing population coupled with a shrinking workforce. In response, the work permit system is pivotal in attracting skilled foreign workers in industries such as healthcare, IT, and engineering. This approach not only addresses labour shortages but also contributes to the country’s economic resilience and innovation efforts.

The permit system also serves as a mechanism to uphold labour standards. It ensures that foreign employees receive fair treatment, including equitable wages, safe working conditions, and access to social benefits, in line with Japanese labour laws. In doing so, it aims to prevent exploitation and maintain the workforce’s integrity.

Who requires a Work Permit or Visa to Work in Japan?

All foreign nationals who are not Japanese citizens or do not hold special residency status are required to obtain a work permit. The following individuals are exempt:

  • Japanese citizens (including those residing abroad)
  • Permanent residents
  • Long-term residents
  • Spouses or children of Japanese nationals or permanent residents

     

All other individuals must undergo a formal work visa application process supported by a Japanese sponsor (typically the employer).

What are the main types of work visas in Japan?

Japan offers a variety of long-term visa options depending on the nature of employment:

1. Work Visa

This is the most common type of employment across various sectors. The visa duration and conditions depend on the job category.

2. Specified Skills Visa (SSV1 and SSV2)

  • SSV1 is designed for foreign workers in sectors with significant labour shortages, such as nursing, agriculture, and shipbuilding. It is valid for up to five years.

     

  • SSV2 allows indefinite renewal and family accompaniment, granted to individuals with advanced expertise.

3. Highly Skilled Professional Visa

Issued to candidates with exceptional academic or professional backgrounds, offering a five-year residency and fast-track pathways to permanent residency.

4. Intra-Company Transferee Visa

Granted to employees being relocated from a foreign branch to the Japanese arm of their organisation.

5. Start-up Visa

Encourages entrepreneurial activity and innovation by allowing individuals to launch their business ventures in Japan.

6. General and Specified Visas

These include visas for cultural activities, internships, or research engagements.

What is the Certificate of Eligibility (CoE) and why is it required?

The Certificate of Eligibility (CoE) is a prerequisite document issued by Japan’s Immigration Services Agency. It confirms that the applicant meets the legal conditions for entry and residence based on employment, family ties, or other valid grounds.

The employer (or sponsor) must apply for the CoE on the applicant’s behalf. Once approved—usually within three months—the document must be presented during the visa application process at the relevant Japanese embassy or consulate abroad.

What are the Work Permit Requirements in Japan?

To obtain a work permit in Japan, the first prerequisite is a Certificate of Eligibility (COE). Employers typically apply for the COE on behalf of their hires through the regional immigration bureau.

General Requirements:

  • A valid passport

  • A formal job offer from a Japanese organisation

  • Completed visa application form

  • Recent passport-sized photograph (taken within the last six months)

Depending on the visa type, additional documents, such as skills assessment results or Japanese language proficiency scores, may be required.

How does the Work Visa Application Process Work in Japan?

The process to secure a work permit in Japan involves the following steps:

  1. Securing a Job Offer: The foreign applicant must first receive an offer of employment from a Japanese employer.

  2. COE Application by Employer: The employer submits a COE application to the local immigration office on the employee’s behalf. This process can take up to three months.

  3. Visa Application: Once the COE is granted (valid for three months), the employee must apply for a work visa at a Japanese consulate or embassy in their home country.

  4. Supporting Documents: These include:

  • Letter of Guarantee

  • Official Invitation Letter

  • Itinerary and purpose of visit

  • List of visa applicants (if applicable)

  • Company profile and contact information

For the Specified Skilled Worker visa, applicants must submit a skill evaluation scoring 70 points or more.

What are the Japan Work Visa Requirements for Employees and Employers?

A. Japan Work Visa Requirements for Employees:

  • A valid passport
  • A completed visa application form
  • Recent passport-sized photographs
  • Certificate of Eligibility (CoE)
  • Proof of job offer and employment contract
  • Relevant academic or professional credentials
  • A points-based assessment (for certain skilled categories).

B. Japan Work Visa Requirements for Employers:

  • Letter of guarantee
  • Official invitation letter
  • Business registration documents
  • Visa applicant list and job descriptions
  • Detailed itinerary for the employee’s stay in Japan

Employers must be diligent in preparing these documents and ensuring accuracy to avoid delays or rejections.

Read our guide : Minimum Wage Trends in 2025 : A Comprehensive Global Overview

What are the work permit fees in Japan?

Visa application fees depend on the type of entry and the applicant’s nationality. The current fee structure is

  • Single-entry visa: ¥3,000 (approx. USD 30)

  • Multiple-entry visa: ¥6,000 (approx. USD 60)

These fees are non-refundable and must be paid at the time of visa application.

Conclusion

Attaining a work visa in Japan requires thorough preparation, accurate documentation, and a solid understanding of immigration procedures. From the initial Certificate of Eligibility to selecting the correct visa type and ensuring employer compliance, each step demands careful attention to detail.

For employers, non-compliance can result in significant legal and financial consequences. For professionals, delays or errors in the visa process can disrupt relocation plans and employment timelines. That’s why engaging with a trusted partner who understands Japan’s regulatory environment is not just helpful—it’s essential.

At Galaxy Group, we simplify international hiring and workforce mobility. With deep expertise across Asia and a robust presence in Japan, we provide end-to-end support for work permits, compliance, and onboarding—so you can focus on growing your business or career without barriers.

Disclaimer: This blog is for informational purposes only and does not constitute any legal advice.

Secure Your Japan Work Visa Seamlessly

Let Galaxy Group handle the complexities of work permits and immigration compliance in Japan, so you can focus on growth—not paperwork.

Speak to Our Visa Experts Today

FAQ’S

How long does it take to obtain a Japanese work visa?

The time taken to process a Japanese work visa typically ranges between 5 and 10 working days, though this may vary depending on the consulate or embassy where the application is submitted.

However, prior to the visa application, the Certificate of Eligibility (CoE) must be issued by the Immigration Services Agency in Japan—a process which can take up to three months to complete.

Yes. In April 2024, Japan introduced a Digital Nomad Visa for remote workers. Eligible individuals must earn at least ¥10 million (approx. USD 65,000) annually and may reside in Japan for up to six months. This visa is not renewable immediately and requires applicants to wait six months before reapplying.

It offers remote professionals a unique opportunity to live and work in Japan without engaging in local employment.

Upon arrival in Japan, immigration authorities will issue a Landing Permit at the port of entry. This permit effectively replaces the visa and serves as official authorisation to enter and begin residing in Japan.

No. All non-residents must hold a valid work visa. Working on a tourist visa is illegal and may result in fines, deportation, or a ban on re-entry.

If you enter the country via major airports such as Narita, Haneda, Kansai, or Chubu, you will typically be issued your Residence Card immediately upon arrival, alongside the Landing Permit.

However, those entering through other ports of entry must visit the municipal office in their local area to apply for a Residence Card.

Additionally, within 14 days of establishing your residence, you are required to register your address at the local ward or municipal office. Your address will then be printed on your Residence Card.

A Re-Entry Permit is necessary if you intend to leave Japan for a period exceeding one year. For shorter absences, a Special Re-Entry Permit can be obtained at the airport prior to departure, allowing re-entry within a one-year period without the need for additional documentation.

Yes. By using an Employer of Record (EOR) like Galaxy Group, your business can hire talent compliantly without needing to establish a legal entity.

Employer’s Guide to Drafting International Employment Contracts

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Employer’s Guide to Drafting International Employment Contracts

Employer’s Guide to Drafting International Employment Contracts

In an era where remote work and cross-border hiring are the norm rather than the exception, international employment contracts have become a cornerstone of global workforce management. These agreements ensure legal compliance across jurisdictions, define the employer–employee relationship, and provide a framework to address risks and responsibilities.

At Galaxy Group, we recognise the challenges of global hiring and offer strategic insights to simplify your journey. This guide is a practical reference for drafting compliant, effective employment contracts, particularly for businesses operating in or expanding to Singapore and beyond.

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What Is an International Employment Contract?

An international employment contract is a formal agreement between a company and an employee based in another country. Unlike local contracts, these must comply with the employment laws of the employee’s country of residence.

They serve as a mutual reference point for responsibilities, rights, compensation, and conduct, ensuring both parties are protected under applicable law.

Why Is an International Employment Contract Necessary?

Without a properly drafted contract, employers expose themselves to legal, financial, and reputational risk. These agreements are essential for the following reasons:

 

  • Compliance with foreign labour laws and statutory requirements
  • Protection of employer interests in areas such as confidentiality and IP
  • Clarity around duties, compensation, and performance expectations
  • Legitimacy of employment, especially for immigration or permit purposes

     

Countries with strong employee protection frameworks often require a written contract by law.

What Should Be Included in an International Employment Contract?

The strength of an international contract lies in its detail. A comprehensive contract should include the following fundamental elements:

 

1. Basic Information

  • Full name, residential address, and tax identification number of the employee
  • Registered name and address of the employer
  • Job title and department
  • Start date (and end date, if fixed-term)

     

2. Job Description and Responsibilities

Clear definition of the employee’s role, duties, and performance expectations. Ambiguity here can lead to disputes or claims of unfair dismissal.

 

3. Contract Type

Specify whether the role is:

  • Full-time or part-time
  • Fixed-term or indefinite

In some jurisdictions, fixed-term contracts automatically convert to indefinite after a certain period—something that must be addressed clearly.

 

4. Working Hours and Overtime Policy

Define the standard workweek, rest periods, and rules for overtime compensation. Refer to local laws—some countries enforce maximum weekly hours, mandatory rest, or time tracking requirements.

 

5. Compensation and Benefits

Outline all financial terms, including:

  • Base salary (currency should be clarified)
  • Bonus structures, allowances, and commissions
  • Statutory and company-provided benefits (healthcare, pension, 13th-month pay, etc.)
  • Payment schedule and applicable tax deductions

     

6. Leave Entitlements

List the types of leave the employee is entitled to, such as:

  • Annual paid leave
  • Sick leave
  • Parental or maternity leave
  • Public holidays

Include how leave is accrued and whether unused leave is carried forward or paid out.

 

7. Probationary Period

If applicable, define the duration of probation, its conditions, and whether termination or confirmation applies at the end. Some countries limit the length or legality of probation periods.

 

8. Termination Terms and Notice Period

Include:

  • Grounds for termination (e.g. performance, misconduct, redundancy)
  • Required notice periods for both parties
  • Local severance pay regulations
  • Restrictive termination conditions (e.g. protection during maternity or medical leave)

     

9. Intellectual Property Rights

Clearly outline ownership of work and innovations created during the course of employment. Employers must protect:

  • Trade secrets
  • Software, patents, and designs
  • Confidential strategies or client data

     

10. Confidentiality and Post-Employment Restrictions

Include enforceable clauses such as:

  • Non-disclosure agreements (NDAs)
  • Non-compete clauses
  • Non-solicitation of clients or employees

The validity of these clauses varies widely by jurisdiction, so legal review is essential.

Which Clauses Are Critical for Legal Protection?

Certain clauses carry greater legal weight in cross-border disputes. These include:

  • Governing Law and Jurisdiction – Which country’s law applies, and where disputes will be resolved.
  • Force Majeure – Addresses unforeseeable disruptions (natural disasters, war, etc.).
  • Data Protection – Specifies adherence to regulations like GDPR, if applicable.
  • Amendment Procedures – How and when the contract terms can be altered.

These provisions provide legal certainty, especially when different legal systems are involved.

Read our guide on: Employee Engagement in Difficult Times: 6 Key Strategies

How Does International Contract Law Affect Your Obligations?

While the term “international contract” implies a global standard, there is no universal employment law. Instead, employers must comply with:

  • National employment laws of the employee’s country

  • Regional or provincial laws (e.g. state-specific regulations in the U.S. or provinces in Canada)

  • International treaties (such as tax treaties to prevent double taxation)

Failing to consider these obligations may render the contract unenforceable or subject the employer to fines and litigation.

What Are the Common Mistakes to Avoid?

  1. Using a generic contract across all countries

  2. Omitting mandatory local benefits or notice periods

  3. Failing to update clauses when local labour laws change

  4. Confusing an offer letter with a legally binding contract

  5. Neglecting to consult legal experts or in-country advisors

Employers should also beware of fixed-term contract conversions and unintentional breaches of Collective Bargaining Agreements (CBAs), which may override individual contract terms.

Conclusion

In the global workplace, an international employment contract is not merely paperwork—it is your primary safeguard. It protects your business, empowers your workforce, and ensures compliance with complex, evolving legal frameworks.

At Galaxy Group, we support employers in crafting watertight, legally compliant employment contracts for international hires. Whether you’re hiring across Asia, Europe, or the Americas, our experts help you navigate the full lifecycle of international contract law—from drafting to execution and beyond.

Ready to hire confidently across borders? Contact Galaxy Group today and ensure your international employment contracts are built to last.

Disclaimer: This blog is for informational purposes only and does not constitute any legal advice.

Secure Your Global Hiring Today

Avoid costly compliance mistakes. Let Galaxy Group help you draft secure, compliant international employment contracts—fast.

Talk to a Global Compliance Expert Now

FAQ’S

What are international tax treaties, and why do they matter in employment contracts?

Tax treaties are bilateral agreements between countries designed to prevent employees and companies from being taxed twice on the same income. If you’re hiring an employee based abroad, it’s crucial to determine whether your country has a treaty with theirs. These treaties can offer tax credits or exemptions, which must be considered during contract drafting to ensure accurate net salary calculations and legal compliance.

Fixed-term contracts can be practical for short-term roles, but they come with risks if the employee remains in the position long-term. In some countries, such as the United Kingdom and Japan, continuous employment under fixed-term contracts can result in the employee automatically gaining permanent status. As laws differ globally, employers should understand the local regulations before opting for this arrangement.

CBAs are negotiated agreements between employers and employee unions, often setting higher standards than national labour laws, such as extended annual leave or additional benefits. For example, in France, CBAs are common and can override individual employment contract terms. If hiring in regions where CBAs are active, it’s wise to consult or collaborate with unions to ensure compliance and avoid complications.

Managing payroll for overseas employees can be complex. Issues may arise around local minimum wages, overtime pay, salary increments, and leave entitlements. Employers must refer to the employment laws applicable in the employee’s country and ensure these are reflected in the contract. Partnering with a global Employer of Record (EOR) can help streamline payroll while ensuring full compliance.

An offer letter usually outlines initial job details and intentions, but it is not always legally binding. In contrast, an employment contract is a formal legal document that details the full scope of the working relationship. In some countries, like those in Europe or Asia, an accepted offer letter may legally bind the employer—so it’s vital to ensure consistency between both documents and understand local implications.

Yes, but each version must be tailored to the specific legal framework of the employee’s country. There is no one-size-fits-all solution in international employment. Collaborating with legal professionals or global HR service providers is highly recommended to ensure each contract respects local laws and cultural practices.

Staying compliant starts with understanding local labour laws and updating contracts when regulations change. Employers can either build internal legal and HR teams or work with specialised partners such as Employer of Record service providers. These professionals manage compliance, draft contracts, and assist with international onboarding, saving time and reducing legal risk.

An Employer’s Guide to Work Permits in Hong Kong in 2025

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An Employer's Guide to Work Permits in Hong Kong in 2025

An Employer's Guide to Work Permits in Hong Kong in 2025

Hong Kong presents a compelling proposition for companies seeking a strategic base in the Asia-Pacific region. As a leading global financial centre, it offers unparalleled access to half of the world’s population within a five-hour flight radius. Coupled with a low and straightforward tax regime, world-class infrastructure, and a highly skilled workforce, Hong Kong consistently ranks among the most business-friendly jurisdictions worldwide.

For organisations looking to address specialised talent requirements, the recruitment of non-local professionals is often essential. In such cases, a clear understanding of Hong Kong work permit system is critical to ensuring regulatory compliance and facilitating a smooth onboarding process.

This article offers a comprehensive overview of the work permit in Hong Kong, specifically tailored for employers engaged in international hiring.

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Who Requires A Work Permit In Hong Kong?

Foreign nationals who do not hold the right of abode or right to land in the Hong Kong Special Administrative Region (HKSAR) must obtain an employment visa prior to taking up any work or professional role. This excludes individuals holding a Hong Kong Permanent Identity Card, which confers the right to live and work without restriction.

Types Of Work Permits In Hong Kong

Work permits in Hong Kong fall under a number of schemes, which vary based on an individual’s nationality, qualifications, and purpose of stay. These are broadly classified as employer-sponsored or non-sponsored.

 

Employer-Sponsored Permits:

  • General Employment Policy (GEP)
  • Admission Scheme for Mainland Talents and Professionals (ASMTP)
  • Immigration Arrangements for Non-local Graduates (IANG)
  • Technology Talent Admission Scheme (TechTAS)
  • Training Visa
  • Working Holiday Scheme (subject to specific country agreements)
  • Supplementary Labour Scheme (SLS)

 

Non-Sponsored Schemes:

  • Quality Migrant Admission Scheme (QMAS)
  • Dependent Visas for accompanying family members
  • Post-study visas for eligible graduates

 

Please explore Galaxy Group detailed article on Work Permits in Thailand : What Employers Should Know?

What are the Key Considerations For International Hiring in Hong Kong

Before initiating an international hire, companies must ensure that the role justifiably requires a foreign professional. The Immigration Department places significant weight on the availability of local talent for the role in question.

 

Employers should:

  • Verify the alignment between the job description and the eligibility criteria of the relevant work permit scheme.
  • Understand the duration, renewal process, and dependencies associated with the visa.
  • Structure employment contracts appropriately and retain relevant proof of recruitment efforts.
  • Anticipate possible legal risks in the event of non-compliance or rejection.

 

Failing to approach these steps with due care can result in business disruptions and reputational damage.

General Guidelines For Work Permits in Hong Kong

Work permits in Hong Kong are granted based on an assessment of both employer and candidate credibility, as well as economic need.

 

Key points include:

  • Labour Market Testing: The role must be demonstrably difficult to fill locally.

     

  • Processing Time: Typically 4–6 weeks, though delays are common during peak periods (June–August).

     

  • Discretionary Decisions: Approval lies entirely at the discretion of the Immigration Department.

     

  • Eligibility Requirements: Applicants must have valid travel documents, no criminal record, and sufficient means of support.

     

  • Document Requirements: A signed employment contract and genuine job offer are essential.

     

  • Credibility Standards: Both applicant and employer must have a legitimate professional background.

     

  • Visa Duration: Permits are usually issued for one to two years and may be renewed.

     

  • Dependent Applications: Spouses and children can apply for dependent visas under most schemes.

     

  • Permanent Residency: After seven years of continuous legal stay, individuals may apply for permanent resident status.

     

  • Change of Employment: A new visa application is required if the individual changes employers.

What is the Application Process For Schemes Requiring Employer Sponsorship?

Step 1: Completion of Forms

Both the candidate and employer must complete the appropriate application forms. For example, under the GEP scheme, Form ID 990A (applicant) and ID 990B (employer) must be submitted.

 

Step 2: Collation of Documents

  • Candidate’s documents: Passport copy, academic qualifications, recent photo, proof of prior employment, etc.
  • Employer’s documents: Business registration certificate, employment contract, company financials, organisational structure, and operational plan.

 

Step 3: Online Submission

Applications are submitted electronically via Hong Kong’s government portal:
Online Application for Entry for Employment as Professionals in Hong Kong

 

Step 4: Review and Assessment

The Immigration Department reviews each case individually, assessing the employer’s business viability and the candidate’s suitability for the role.

 

Step 5: Visa Issuance

Upon successful review, an electronic visa (e-visa) is issued. This must be presented at immigration upon arrival in Hong Kong.

What are the Common Challenges Faced by Employers during the Visa Process?

Employers may encounter several obstacles during the visa process in Hong Kong:

  • Incomplete Applications: Missing or inaccurate documents frequently cause delays.

     

  • Lack of Supporting Evidence: Insufficient justification for hiring a foreign professional may lead to rejection.

 

  • Policy Volatility: Changes to immigration policy or eligibility criteria can impact ongoing or planned applications

How to Mitigate the Challenges Faced by Employers During the Visa Process?

To minimise delays and improve success rates, employers should:

  • Review all documents meticulously before submission.
  • Provide a comprehensive job description and evidence of local recruitment efforts.
  • Stay updated on policy changes through government notices or legal advisers

 

Consider EOR solutions in Hong Kong

Partnering with a professional Employer of Record Hong Kong, such as Galaxy Group, can be highly beneficial. EORs support businesses by:

  • Managing the end-to-end work permit application process
  • Ensuring full compliance with Hong Kong’s labour laws
  • Overseeing payroll and employee benefits
  • Supporting seamless onboarding without requiring a local entity

This allows businesses to focus on strategic priorities while ensuring smooth international hiring.

Conclusion

Recruiting international professionals in Hong Kong is an opportunity that must be approached with diligence. By understanding the visa framework, structuring thorough applications, and working with experienced partners like Galaxy Group, employers can confidently manage foreign talent acquisition.

With the right support, international hiring becomes not only possible but a competitive advantage in one of Asia’s most dynamic markets.

Simplify Work Permits with Expert Support

Choose Hong Kong work permits with our EOR service. From applications to compliance, we handle it all—letting you focus on business growth.

Contact us now!

FAQ’S

What is a Work Permit in Hong Kong?

A work permit is an official authorization granted by the Hong Kong government to a foreign national allowing him / her to legally work in Hong Kong under specific employment terms.

Any person other than permanent residents who have the right of abode or right to land in the Hong Kong Special Administrative Region (HKSAR), must obtain a visa before coming to Hong Kong for the purposes of study, employment, training, investment, or residence.

There are various work permits the Hong Kong government allows for. The most common among them include the General Employment Policy (GEP), the Admission Scheme for Mainland Talents And Professionals (ASMTP) and the Technology Talent Admission Scheme (TechTAS)

The Employers are required to furnish documents like a detailed job description, proof of recruitment efforts made to employ local residents, business registration certificate, etc.

Applications typically take 4-6 weeks to process after all required documents are received, however the same varies from case to case. A longer processing time may be required during the summer rush period between June and August.  

Vietnam’s Manpower Laws: Key Insights for New Employers

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Vietnam’s Manpower Laws: Key Insights for New Employers

Vietnam’s Manpower Laws: Key Insights for New Employers

Vietnam has steadily emerged as one of Southeast Asia’s most promising markets for foreign investment. With over 70% of its population under 35, the country has a young, skilled, tech-savvy, and growing English-proficient workforce, making it highly attractive for global businesses.

 

Encompassing one of the lowest labour costs in the region, including the minimum wage in Vietnam, it’s no surprise that companies across industries are setting their sights on this dynamic economy. However, entering a new market, such as through business incorporation in Vietnam, comes with it’s share of responsibilities, and in Vietnam, that begins with understanding how local labour laws operate.

 

Whether setting up a new business in Vietnam or hiring through an Employer of Record (EOR) in Vietnam, being familiar with key employment regulations is essential. This blog outlines key insights from core labour-related laws that Employers must understand to navigate Vietnam’s legal landscape.

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Regulatory Framework in Respect of Manpower Laws in Vietnam

Vietnam’s Manpower landscape is shaped by multiple legal instruments that collectively define the rules of engagement between employers and employees, covering everything from recruitment to benefits, insurance, safety, and termination. These include:

  • The Labour Code (2019) – the principal statute that governs all individual and collective employment relationships in Vietnam.

  • The Employment Law (2013) – sets a broader framework for labour market development and vocational training.

  • The Social Insurance Law (2014) – mandates the participation of employers and employees in Vietnam’s compulsory social insurance (SI) system.

  • The Occupational Safety and Health Law (2015) – designed to safeguard workers’ physical and mental health across all sectors.

What are the Key The insights of Manpower Laws in Vietnam?

1. Employment Contracts

Ø  The Labour Code recognises two types of contracts:

  • Indefinite-Term Contracts – This type of contract is best suited for permanent roles, as it has no fixed term or termination date. The contract becomes indefinite after two consecutive fixed terms.
  • Fixed-Term Contracts – This type of contract is ideal for project-based or temporary work, allowing for a fixed term of up to 36 months. It can only be renewed once, after which it becomes indefinite if parties continue working after expiration.

Ø  Probationary Periods – Must be agreed to in writing and cannot exceed 30 days for jobs requiring vocational training and 60 days for jobs requiring college degrees or higher.

 

Ø  Unilateral termination – Either party may terminate the contract under specific conditions, with a 30 to 45 day notice period based on the type of contract. Failure to follow proper dismissal procedures can result in legal and financial penalties.

2. Working Hours, Overtime, and Leave

Ø  Standard working hours in Vietnam are up to 10 hours per day and 48 hours per week, where a weekly basis is applied. However, a 40-hour workweek is encouraged by the government.

Ø  Overtime is allowed provided that:

–         Employee’s overtime working hours do not exceed 50% of the regular working hours in a day.

–         In the case of weekly work, the regular working hours plus overtime do not exceed

  •         12 hours/day
  •         40 hours/month
  •         200 hours/year, extendable to 300 hours in specific sectors

Ø  Employees are entitled to at least 12 days of annual leave, plus public holidays and special leave for personal reasons. Pro-rata leave applies to employees with less than 12 months of service.

Ø  The Act also provides for an increase of 1 day annual leave with every 5 years of employment with the same employer.

3. Social Insurance

Under the Social Insurance Law 2014, all employers are required to contribute to the following for all employees with contracts of at least one month:

  • Social Insurance (SI): SI covers sickness, maternity, occupational accidents, retirement, and death.
  • Health Insurance (HI): HI provides coverage for medical examination, treatment, and hospitalisation costs, ensuring employees have access to essential healthcare services.
  • Unemployment Insurance (UI): UI offers income replacement during unemployment.

These contributions support retirement, maternity, sickness, unemployment, and medical coverage. They apply to all employees with contracts of one month or more.

4. Safe Workplaces

Employers are legally responsible for ensuring a safe and healthy working environment under the Occupational Safety and Health Law 2015. This includes:

  • Risk Prevention: Employers must conduct risk assessments, establish safety protocols, and regularly inspect workplace hazards.
  • Training: Mandatory safety and hygiene training must be provided, particularly for roles involving hazardous materials or equipment.
  • Medical Surveillance: Annual health checks are required, with increased frequency for high-risk occupations.
  • Accident Reporting and Compensation: Serious workplace injuries must be reported to labour authorities within 24 hours. Employees who are injured on the job are entitled to treatment and financial compensation, which is based on the severity and cause of the injury. Employers who hire employees in Vietnam should be aware of these obligations to ensure compliance with local labour laws.

Promoting a culture of safety is not only a legal mandate but also a vital component of employee retention and brand reputation.

5. Hiring Foreign Employees

Vietnam allows hiring foreign professionals, but only for roles where local expertise is unavailable. Employers, often with the help of recruitment services in Vietnam, must justify the hire and obtain a work permit before the employee begins work.

Commonly approved positions include

  • Managers and executives
  • Technical experts
  • Project consultants

6. Legal Protections for Vulnerable Workers

Vietnam’s labour system includes targeted protections for women and vulnerable workers:

  • Female employees with children under 12 months get a 60 minute daily break for nursing
  • Women are also entitled to menstrual leave – minimum 3 days/month with a 30 minute daily break
  • Anti-discrimination provisions mandate equal opportunities and prohibit bias in recruitment processes.

Employer Tips for Compliance

  •  Update internal policies to reflect gender protections and anti-discrimination rules.
  • Use bilingual contracts that specify the governing language and always align contract terms with statutory requirements.
  • Keep detailed records of working hours and leave to stay audit-ready and prevent disputes.
  • Ensure monthly payments are submitted on a timely basis. Non-compliance can lead to significant back-pay demands and legal consequences.
  • Safety procedures are mandatory. Implement a compliance-first culture to protect both your workforce and your reputation.
  • Partner with a licensed EOR or legal provider to handle permit applications and ensure proper onboarding.  

Why Compliance Matters More Than Ever?

Labour laws in Vietnam are actively being aligned with global standards, thanks in part to trade agreements and international economic integration. Compliance is more than just a box to tick for foreign businesses – it’s a foundation for sustainable growth.

Poor labour practices can result in penalties, reputational harm, and even the suspension of a business license. On the other hand, a compliant employer is viewed as trustworthy, ethical, and future-ready.

 

Read our expert guide on : Minimum Wage Trends in 2025

How Can the Galaxy Group Help?

At Galaxy Group, we specialise in making international hiring simple, compliant, and seamless. As a trusted Employer of Record (EOR) and corporate solution provider, we help you:

  • Draft legally sound employment contracts
  • Manage payroll in Vietnam and social insurance contributions
  • Navigate complex hiring procedures for foreign workers
  • Maintain a compliant and safe work environment

Whether you’re hiring one employee or building a whole team in Vietnam, Galaxy Group offers the local expertise and operational support to help you scale confidently.

Final Thoughts

Vietnam is a compelling destination for global business – but success starts with respecting the rules. By understanding the country’s labour laws and proactively managing compliance, you protect your employees, your business, and your long-term investment.

 

And with Galaxy Group by your side, you’ll always be one step ahead.

 

 

Disclaimer: This blog is for informational purposes only and does not constitute any legal advice.

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FAQ’S

Can foreign workers be employed in Vietnam?

Yes, foreign workers can be employed in Vietnam by obtaining a work permit from the relevant authorities, and only for positions that cannot be filled by Vietnamese nationals. Common eligible roles include managers and executives, technical experts, and consultants.

Employers must conduct risk assessments, implement safety protocols, provide mandatory training on occupational health and safety, and offer annual medical check-ups. They must report serious workplace accidents within 24 hours to the authorities and provide compensation if applicable.

Employers must contribute to Social Insurance, Health Insurance, and Unemployment Insurance for employees with contracts of at least one month.
These cover benefits such as maternity, sickness, accidents, retirement, and job loss.

Employment contracts must be in writing, clearly stating job roles, salaries, working hours, benefits, and termination conditions. Bilingual contracts (English and Vietnamese) are highly recommended for foreign employers.

Hidden Challenges of Cross-Border Employee Mobility in Taiwan

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Hidden Challenges of Cross-Border Employee Mobility in Taiwan

Hidden Challenges of Cross-Border Employee Mobility in Taiwan

Organisations are steadily broadening their regional and international reach in today’s fast-paced global landscape. Taiwan, praised for its robust digital ecosystem, dependable governance, and central positioning in Asia, remains an attractive destination for global enterprises. Yet, beneath it’s appeal lie subtle complexities surrounding cross-border employee mobility, particularly in relation to immigration, labour laws, and regulatory requirements.

 

Transferring staff internationally requires more than logistical preparation – it necessitates a comprehensive awareness of the host country’s legal, cultural, and economic environment. Although Taiwan’s employment structure is broadly investor-friendly, it comes with distinct challenges. These include employment contracts in Taiwan, changing norms around employee benefits in Taiwan, and legislation that favours local employee protection.

 

Understanding these less obvious but critical aspects of employee mobility is essential for any organisation seeking a smooth and sustainable expansion into Taiwan. In the sections that follow, we will examine the hidden challenges that businesses must anticipate and navigate to ensure both compliance and operational success in this dynamic market.

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Social and Cultural Meshing

Foreign professionals in Taiwan often encounter social and cultural hurdles that complicate workplace integration. The local communication style, which avoids confrontation and promotes politeness, may lead to miscommunication. Confucian traditions, which emphasise hierarchy and respect for titles, can clash with the flatter organisational cultures common among expatriates.

 

Given the importance of Guanxi networks, business practices such as after-hours gatherings may feel obligatory and complicate social interactions. Informal language barriers and limited awareness of cultural norms may further inhibit cohesion. To address these issues, employers should provide pre-arrival cultural training, ongoing language support, dual-language communication, mentorship, and inclusive team-building. Emphasising diversity training and fostering cross-cultural dialogue are also critical for long-term integration.

The Immigration Framework in Taiwan

Taiwan adopts a layered immigration policy, with distinct categories for foreign nationals, Mainland Chinese citizens, and individuals from Hong Kong and Macau. Programs like the Employment Gold Card and simplified channels via the Workforce Development Agency (WDA) have enhanced accessibility for select professionals. Yet, companies must still navigate a thorough application and approval process.

 

Foreigners may only work in Taiwan if their individual qualifications and employer credentials meet specific criteria. Most foreign employees are required to hold a relevant degree or possess considerable industry experience. Simultaneously, employers must demonstrate financial viability, often through revenue or capital thresholds, to sponsor foreign staff.

Facing Labour Law Restrictions and Employment Risk

Taiwan’s labour system does not support ‘at-will’ employment. Termination must have substantial legal grounds, such as restructuring or underperformance. Additionally, procedural compliance is essential, encompassing notice periods, severance compensation, and job search leave.

 

While designed to uphold workers’ rights, these provisions may prove difficult for foreign firms less familiar with the local framework. Misaligned employment contracts in Taiwan  or improperly managed terminations can lead to costly legal disputes and reputational damage.

Limited Sectoral Mobility and Workforce Reassignment Issues

A frequently overlooked obstacle is limited sectoral mobility. Employees in Taiwan are typically retained within their current industry – transitions from manufacturing to services, for instance, are rare. This limits versatility and complicates workforce planning for organisations aiming to develop cross-functional teams.

 

In addition, evolving policies on the minimum wage in Taiwan and entitlements require businesses to recalibrate their workforce mobility strategies accordingly.

 

Our guide: Minimum Wage Trends in 2025 : A Comprehensive Global Overview

Permit Approvals and Employer Eligibility

Companies seeking to employ foreign professionals must meet specific qualifying conditions, including revenue or trade volume benchmarks. Without such credentials, even highly skilled individuals may be unable to obtain a valid work permit.

Learn more about “How to Apply for work permit in Taiwan“

Even intra-company transfers face scrutiny, requiring adherence to employment law and confirmation that the local entity is authorised to sponsor overseas employees.

Legal Disputes and Employment Litigationy

Mediation is commonly encouraged in Taiwan, but courts frequently intervene in unresolved employment cases. Disputes often center around unfair dismissal, contract ambiguity, or workplace discrimination.

 

To avoid complications, businesses must operate in accordance with Taiwanese labour standards, especially in areas involving Taiwan employee benefits, severance practices, and reassignments. Failing to do so could result in back pay, reinstatement orders, or legal penalties.

Managing Non-Compete Covenants

To safeguard intellectual property and sensitive information, many businesses use post-employment restrictions. In Taiwan, non-compete clauses are only valid if four requirements are met:

  • The employer has a lawful interest to protect
  • The employee had access to sensitive business information
  • The clause is logical in scope and duration (maximum two years)
  • The employee receives fair compensation

Such clauses may be deemed invalid without adequate compensation or clarity, which could potentially increase competitive vulnerability.

 

Our guide: How to Hire International Employees : A Comprehensive Guide

Remote Work and the Shifting Definition of Employment

The growing trend of remote work has altered the traditional understanding of employment. Courts in Taiwan now evaluate employment status based on practical controls, operational integration, and economic dependence – rather than relying solely on contractual designations or physical presence.

 

Companies with a remote workforce in Taiwan should carefully structure these arrangements to avoid unintentionally triggering employer obligations under Taiwanese law.

Strains in the Compensation and Payroll Processes

Managing payroll in Taiwan entails compliance with tax regulations, social contributions, and the Labour Standards Act. Salaries must meet the legal minimums, and statutory benefits – such as National Health Insurance, labour insurance, and retirement funding – must be applied correctly.

 

Although the average salary in Taiwan varies across sectors, international employers must ensure that their compensation structures meet both legal and market demands to recruit and retain qualified personnel.

Conclusion

Cross-border employee mobility in Taiwan offers immense opportunities but also demands informed navigation. From immigration compliance to local employment laws, success hinges on expert support.

At Galaxy Payroll, we deliver more than consultation. We offer a fully managed solution for companies relocating employees, setting up new branches, or testing the market without full legal incorporation.

Our offerings include:

  • Business incorporation in Taiwan and regulatory compliance
  • Legally Compliant Employment Contracts in Taiwan
  • Comprehensive payroll services in Taiwan, including taxation and benefits
  • Immigration assistance, including permits for foreigners who can work in Taiwan
  • Employer of Record (EOR) options for companies not ready to establish an entity
  • Operational support for both remote and hybrid teams

With Galaxy Payroll as your compliance and payroll partner, you gain clarity, avoid regulatory setbacks, and scale operations efficiently.

 

Disclaimer: This blog is for informational purposes only and does not constitute any legal advice.

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FAQ’S

Can foreigners work in Taiwan legally?

Yes, foreigners can work in Taiwan legally, provided they obtain the appropriate work permit and meet eligibility criteria such as qualifications, salary thresholds, and sector-specific requirements.

Cultural and family integration, work permit and visa compliance, employment contract alignment, managing compensation and employee benefits and adapting to Taiwan’s Compliance system, are some of the lesser-known but critical challenges.

Employment contracts in Taiwan must comply with the Labour Standards Act and include necessary terms such as wages, working hours, leave, and termination. Bilingual contracts should specify the governing language in case of disputes.

Spouses and dependents may face challenges like visa restrictions, job limitations, and adapting to local schools and healthcare systems. Proper support can ease their integration.

Minimum Wage Trends in 2025: A Comprehensive Global Overview

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Minimum Wage Trends in 2025 : A Comprehensive Global Overview

Minimum Wage Trends in 2025: A Comprehensive Global Overview
Remuneration is a critical aspect of working conditions. Decent work is productive work that provides workers with adequate earnings, ensuring satisfactory living conditions for workers and their families,” explains the International Labour Organization (ILO).
 
Policymakers across the globe seek to equalize opportunities and outcomes for their citizens through distinct labour market policies, which are influenced by each nation’s economic conditions, political landscape and cost of living.
Why Is This Important?
For employers operating internationally or those expanding into new markets, adhering to the varied labour laws in each jurisdiction is essential. A clear understanding of minimum wage rates, which differ significantly across countries, allows businesses to identify the most suitable regions for expansion while aligning with their financial plans.
Furthermore, having insight into the worldwide minimum wage strategically benefits employers planning to hire a diversified workforce.

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Minimum Wages Around The World

Countries with higher living costs, such as the United States and Germany, generally establish higher minimum wages to ensure workers can afford basic necessities.

 

Luxembourg, with its finance- and technology-driven economy, offers a high minimum wage of approximately USD 2,711 per month for unskilled workers. In contrast, Vietnam, which relies on low-cost manufacturing as part of its “China Plus One” strategy, has a regional minimum wage ranging from USD 151 to USD 194 per month.

 

France, with its strong tradition of labour unions advocating for higher wages, sets a minimum salary of USD 1,851 per month. In the Philippines, where union influence is comparatively weaker, the minimum wage ranges between USD 169 and USD 231 per month, depending on the region.

 

For distinct reasons, Switzerland and Ethiopia are examples of countries without a national minimum wage. Switzerland relies on collective bargaining and economic flexibility, making a national minimum unnecessary, whereas in Ethiopia, where over 80% of the workforce is employed informally in agriculture and street vending, introducing a national minimum wage could lead to higher unemployment and increased labour costs.

Regional Insights

To comprehensively compare minimum wage levels across the globe, we have categorised the data based on continents. This allows us to observe significant regional differences and clarify how minimum wages vary according to local economic conditions, labour market policies, and cost of living.

  • Europe: Minimum wages tend to be higher, particularly in wealthier nations such as Luxembourg, the United Kingdom and the Netherlands. These countries set minimum wage rules to ensure workers meet basic living expenses in their high-cost economies.
  • North America: The United States and Canada also have relatively high minimum wages, though the range varies widely within each country. The U.S. has different wage standards by state, while Canada has a progressive wage scale across provinces.
  • Asia: Minimum wages starkly contrast between advanced economies (such as South Korea) and developing nations, like Indonesia and India. The variation is due to differing economic structures – with more developed countries offering higher wages, for workers to keep up with living standards.
  • Australia and New Zealand: Both countries feature relatively high minimum wages, reflecting their higher living costs and strong labour protections.
  • South America: Minimum wages in South America tend to be lower than other continents. Countries like Brazil and Argentina have minimum wages that are significantly lower than those in Europe or North America. However, these wages are still adjusted to meet the economic context of the region.
  • Africa: African countries such as South Africa have minimum wages that are comparatively low, especially when compared to more developed regions, reflecting the economic challenges faced in many parts of the continent.
Global Minimum Wage Comparison by Country and Continent :
Global Minimum Wage Comparison by Country and Continent
While this is a non-exhaustive list of minimum wage rates across various countries, we encourage you to visit ILOSTAT for a complete list and for more precise wage comparisons using PPP-converted figures.

Countries Without a Statutory Minimum Wage

Several nations operate without a statutory minimum wage, each for distinct reasons. Let’s delve into some noteworthy examples.
Countries Without a Statutory Minimum Wages

How Galaxy Payroll Can Help?

Staying informed about minimum wage regulations is crucial for global employers to ensure compliance, maintain a competitive workforce, and avoid potential legal consequences. Given the significant wage variation across countries, businesses must carefully plan their employee distribution and scaling efforts.
 
To streamline global payroll management, services like Payroll Outsourcing and Employer of Record (EOR) offer solutions for managing market entry, hiring, complex wage laws, tax requirements, and legal compliance – without establishing a local entity.
 
At Galaxy Payroll, we specialise in assisting companies with market expansion by establishing new entities or entering new markets with a “boots on the ground” approach. Our “plug and play” solution system saves clients significant time and prevents costly errors. You can focus on expanding your business while we handle the complexities behind the scenes.
 
Partner with us for seamless corporate scaling.
 
 

Disclaimer: This blog is for informational purposes only and does not constitute any legal advice.

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FAQ’S

What is minimum wage, and why is it important for employers?

Minimum wage is the lowest hourly, daily, or monthly salary that employers must pay their employees to ensure access to basic necessities and protection against exploitation. It is a legal mandate by the government binding employers to commit to minimum wages as fixed under the statute for work performed during a given period. Minimum wage rates can vary significantly based on location (country, state or region) and sometimes even by industry or occupation.  For global employers, understanding minimum wage ensures compliance with labour laws, prevents legal penalties, and promotes fair employee compensation.

Minimum wages differ significantly by country and even by region within a country due to various factors affecting each region, such as inflation, economic conditions and labour policies. Employers should check the latest local regulations before fixing salaries.

As of 2025, countries with the highest minimum wages include Luxembourg, Netherlands, Australia, New Zealand, United Kingdom, Ireland, Germany, France, etc. with Luxembourg paying the highest at US $ 2711 to US $3254 per month. However, the exact figures vary due to exchange rates, cost of living and government policies.

Cambodia, Sudan, Burundi, Rwanda, Georgia, Eswatini, Gambia, Guinea-Bissau, Kyrgyzstan, Uganda, Ghana, Nigeria and Madagascar are some of the countries that have lower minimum wages.

Governments typically review and adjust minimum wages annually, but some make changes more frequently based on inflation or economic crises. Employers should stay updated on local labour laws to ensure compliance.

Failure to comply with minimum wage laws can result in fines, legal action, back payments to employees, and reputational damage. In some jurisdictions, repeat violations can lead to business license revocations.

Certain exceptions such as internships, apprenticeships, or training periods where lower wages are permitted, may apply. However, these exemptions vary by country and should be reviewed carefully.

Employers can monitor government labour websites, consult local legal experts, or use compliance management services to stay informed about wage updates and regulatory changes.

Yes, employers must account for payroll taxes, social security contributions, healthcare and other employee benefits. These elements can significantly impact total labour costs in different countries.

In many countries, labour unions negotiate minimum wage levels through collective bargaining, often resulting in industry-specific wage agreements that employers must follow.