A Japanese-owned company in India employs staff under Indian law, now mainly the four labour codes in force since 21 November 2025, plus state shops and establishments rules. It needs written appointment letters, provident fund and employee state insurance registration where applicable, a POSH committee, leave and working hour policies, and a lawful process for ending employment. Japanese expatriates working in India also come within Indian tax and visa rules.
- Document route
- Japanese notary (koshonin), then MOFA apostille
- Time difference
- IST is 3h30 behind Japan all year (no daylight saving)
- Main laws
- Four labour codes, in force 21 Nov 2025
- Local law
- State Shops and Establishments Acts
Employment Law for Foreign Employers from Japan: how it works
We review or draft the core employment documents for the Indian company: appointment letters for managers and for workers, the employee handbook, POSH policy and internal committee, and confidentiality and intellectual property terms. Where Japanese head office policies are being rolled out, we adapt them so that they work under Indian law; for example, Indian non-competes after employment are generally unenforceable, and disciplinary action needs a fair inquiry. For factories we look at the standing orders, contract labour arrangements and union relations under the Industrial Relations Code.
For Japanese staff posted to India we advise on employment visas, Indian tax residency and the India and Japan social security agreement, under which a certificate of coverage can keep a detached employee in the Japanese system for a period. When an exit is needed in India, we plan it: the reason, the notice or pay in lieu, gratuity, any retrenchment compensation and a carefully worded settlement. Because termination disputes in India can run for years, a properly documented exit is far cheaper than a fight.
What clients in Japan should know
- Japanese managers in India should be briefed that informal warnings rarely help in Indian proceedings; written records do.
- Japanese staff with a certificate of coverage may be exempt from Indian provident fund contributions for the detachment period.
- Factories employing larger numbers of workers need government permission for layoffs, retrenchment or closure under the Industrial Relations Code.
Step by step from Japan
Video consultation
A call at a time that suits Japan, after we have read your documents.
Documents signed in Japan
Japanese notary (koshonin), then MOFA apostille
Work in India
Our team files, appears and follows up in India, and shares scans of everything filed.
Result and handover
Certified copies and originals are couriered to you in Japan where needed.
The full guide
This page covers what changes when you are in Japan. For the law, the documents and the step-by-step procedure, read our main page on Employment Law for Foreign Employers, or see all services for clients in Japan and the Doing Business in India practice area.
Questions from clients in Japan
Can we bring Japanese seniority-based pay to India?
Yes, pay structures are a matter of contract, but minimum wage, bonus and gratuity rules still apply to eligible employees.
Do Japanese expatriates pay tax in India?
Salary for work done in India is generally taxable in India, subject to the treaty. Short assignments may qualify for relief, so plan the length of stay.
Is a non-compete in our Indian employment contract enforceable?
Restrictions during employment are generally enforceable, but restrictions after employment ends are usually void under section 27 of the Contract Act.