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Contract's renewal: 無期期間契約社員or正社員?

Discussion in 'Working in Japan' started by momonoki, Mar 14, 2018.

  1. momonoki

    momonoki Kouhai

    Hi guys,

    I would like to hear your advice about the renewal of my job’s contract.

    I’m working as contract employee since 1st January of 2017 in an architectural company which mainly dispatch employees to general contractors and design firms.(aka 建築派遣会社).

    When I have been hired last year, the company promised me that after 1 year they would have changed my contract to indefinite period contract employee (無期期間契約社員) or regular employee (正社員). The choice is up to me. Now, as contract employee I don’t have bonus and wage raise, but I have 30000 yen/month as not well specified 手当。So it’s like basic wage 230000 + 30000 bonus/month. From what I understood last year the 30000 yen/month bonus is only for contract employees. Does the 2-months bonus/year a right guaranteed by law for every regular employee? Or anyway is up to the company? If I change to regular employee is likely I am going to lose those 30000yen/month in exchange for “maybe” yearly bonus.

    Around next week I will meet them to talk about my decision, but because it’s my first working experience in Japan I want to get prepared for things I should make clear before taking my decision.

    Should I ask for a (written) economic prospect of both hypothesis before making a choice?

    I made some research in Japanese about the two types of contract , and it seems the regular employer has all the merits.

    But I still want to understand if there is any tricky point somewhere. I feel suspicious that they let me choose the contract.:emoji_thinking:

    I think about: taxes , maternity leave, paid vacations, resignation, etc.
    Probably is important to say I don't intend to work long for this company.

    I would be really glad If you have any advice about the choice.

    Thank you guys!:emoji_grinning:
  2. Majestic

    Majestic 先輩

    Bonuses are not a guaranteed right of any employee (unless it explicitly says so in your contract).
    There is no Japanese law that says companies must pay regular employees (or contract employees) any kind of bonus.
    If you've worked for this company for a year, and you don't intend to work for them much longer, take whichever option makes you the happiest. Usually "regular employee" is more desirable as it implies more stability in your future as opposed to a contract employee. However, if you are not going to stay much longer, it is almost an irrelevant point.
    • Agree Agree x 1
  3. momonoki

    momonoki Kouhai

    Thank you Majestic for the reply! I think I would choose the regular employer's option . It may help to have a regular job position record in my resume for the next time I search for a new job.
  4. Glenski

    Glenski Just me

    Traditionally, companies take an annual salary and divide it into 12 equal portions for the months and 2 unequal portions for the bonuses. It's not a legal requirement.

    Are there differences in health care plan or time off or travel reimbursement? Will the overall salary change (and perhaps affect your tax situation)?

    Having your status as regular employee may look better when you apply for the next job. Indefinite contract status does not necessarily mean you are there forever, so you could get fired in a year if they downsize. After 5 years, though, you legally have the option of deciding whether to be a full-timer permanently.
  5. DragonAsh

    DragonAsh Kouhai

    Others have already made good points above. One point to consider, seisha-in may be eligible for 退職金 (severance pay) that you otherwise would not get.

    I've seen and handled numerous cases of contract employees transitioning to seisha-in, and in none of the cases did the person take a base pay cut. So I would be very surprised if that was the case in your situation, but the easiest way to confirm this is to simply ask HR what the terms would be if you went to seisha-in, they would completely understand why you're asking.

    That you were a seisha-in will have zero bearing on your future job prospects. I suppose you could theoretically argue it's a negative ('the company committed to this person by making him seisha-in, and he quit' etc).

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