Q67: Can a liaison office employ staff? And can it enroll in various insurances?

A: Yes, a liaison office can employ staff in Japan. Although the employees will be employed by a foreign corporation, they can also be enrolled in various insurances.

Q: Could you tell me more specifically about workers' compensation insurance, employment insurance, and social insurance?

A: Firstly, workers' compensation insurance is mandatory if there is at least one employee, covering accidents occurring in the course of employment or on the way to and from work. Employment insurance becomes mandatory if two conditions are met: the employee's scheduled working hours are 20 hours or more per week, and the employment is expected to continue for at least 31 days, providing benefits in case of unemployment. For social insurance, in the case of a liaison office, if there are less than five employees, enrollment is optional, but if there are five or more employees, it becomes mandatory under certain conditions.

Q: Can the representative themselves enroll in these insurances?

A: Since the representative is treated as a sole proprietor, they cannot enroll in social insurance. However, enrollment may be allowed if documents proving an employment relationship with the overseas head office are submitted, but this depends on the decision of the pension office.

Japanese Certified Public Accountant ・English-speaking Japanese tax accountants Hiroya Aihara
Ringo Tax Corporation

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