Understanding Employment Types in Japan: Permanent vs. Contract Employees

There is 「契約社員（けいやく しゃいん）」- "Contract employee" in the 雇用形態（こよう けいたい）- "Employment status" in YOLO JAPAN jobs listing. Do you know the difference between "permanent employee" and "contract employee?"

Know the pros and cons of each, and choose the way of working that best suits you!

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1) What are permanent employees?

Permanent employees do not have a working period. In most cases, permanent employees work full-time (8 hours.) 

 

■Advantages for permanent employees:

・You can work until retirement age.

　※The average retirement age in Japan is 60 or 65 years old.

・昇給（しょうきゅう）-"pay raises" and 賞与（しょうよ）-"bonuses" are provided.

・It's easy to pass inspections for loans and credit cards.

・Benefits are substantial.

 

■Disadvantages for permanent employees:

・It's difficult to take a long vacation.

・There is a possibility that the departments or working places may change.

 

2) What are contract employees?

Contract employees have a working period. Before the working period ends, you discuss with the company whether you want to continue working or not.

 

Advantages for contract employees:

・Because there is a working period, you can challenge yourself with other various jobs.

・It's easier to apply for than permanent employee.

・The departments or working places will not change.

・There is an opportunity to become a permanent employee.

 

Disadvantages for contract employees:

・There is a possibility that you can't renew the contract.

・You can't quit during the contract period.

 

3) Important points for contract employees

When working as a contract employee, it is important to make sure of the following 3 points.

 

1. Contract period：Please check the date and how long is your contract period.
   
   

2. Contract renewal：Please find out the terms for contract renewal.
   
   

3. Can I become an employee?：Check if you can become a permanent employee. Also, make sure you know the requirements to be a permanent employee.

Do you know the difference between permanent employees and contract employees? Take a look at the advantages, disadvantages, and important points, and let's challenge yourself to find a job that suits your lifestyle!

 

※The advantages and disadvantages described may differ depending on the company. Make sure to check with the company.

 

 

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