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Employment Insurance system in Japan

Yaaay team April 6, 2024
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If you work for a Japanese company, you are covered by four social insurance systems: Health Insurance, Occupational Injury Insurance, Employment Insurance, and Employees' Pension Insurance.
In this article, we will talk about one of the four, Employment Insurance.

Unemployment benefit is the main benefit

Employment Insurance is a system that provides necessary benefits when a person becomes unemployed, etc., in order to stabilize life and employment of that person, as well as to assist him/her in finding new employment.
Employment insurance is often referred to as unemployment insurance. This is because it mainly applies if you are unemployed.
Unemployment benefit (basic allowance) is paid while you are unemployed. If you become unemployed, you can apply for it at Hello Work, an employment insurance office. You can only apply for unemployment benefits at Hello Work that has jurisdiction over your residence. 
When you resign, you will receive a "rishokuhyo" (release form) from the company. It contains the reason for your resignation, and you must submit it to Hello Work.
Hello Work decides the amount of unemployment benefits, its duration, and when the benefits will be paid based on this information, so the "rishokuhyo" is a very important document.
The amount of benefit varies depending on the reason for resignation, length of employment, and your age.
If you resign for company reasons, such as layoff or bankruptcy, unemployment benefits will be paid within 7 days of application. On the other hand, if you resign for personal reasons, you must wait two months to receive benefits. If you get a new job while waiting, you will not receive unemployment benefits.

Other types of benefit are also available

In addition to unemployment insurance, other benefits such as employment continuation benefits, education and training benefits, and employment promotion benefits are also available. Please inquire at Hello Work to see if your situation meets the conditions for receiving these benefits.
- If you have a family member who needs nursing care, you can take up to three months of leave, for which you will receive 2/3 of your salary as nursing care leave benefits.
- If you have a baby, you are also entitled to childcare leave benefits. The period of entitlement is from the birth to the child's first birthday (with appropriate reasons, this can be extended to two years of age). For the first 180 days, the benefit is 2/3 of your salary, and thereafter 1/2 of your salary.
- There is also a benefit called the Education and Training Benefit, which is a guarantee that you will be reimbursed after paying for your education. Although reimbursement is not full payment, you can receive money while you study.

All employees working for Japanese companies are covered

The purpose of employment insurance is to protect workers. Employers of Japanese companies are obligated to have their employees enrolled in labor insurance if they employ even one employee.
Foreign employees tend to return to their home country soon after resigning before applying for unemployment benefits in Japan, or resign only after they have found a new job. But if you are eligible to receive the benefit according to the conditions mentioned above, do not hesitate to submit an application for coverage.

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