There are different types of employment. They are;
- Regular Employee aka Seishain (正社員)
- Contract Staff aka Keiyaku Shain (契約社員)
- Temporary Staff aka Haken Shain (派遣社員)
In this article, I will discuss Hakenshain and Keiyakushain in the IT field (especially in Japan). Because there are slightly different things that you may not know about that.
What is Dispatch or Hakenshain means?
Temporary staffing is a way of working in which you sign an employment contract with a temporary staffing agency (dispatch agency) and work at the company where you actually work (client company).
Since the employer is the temp-staff agency that signs the employment contract, the temp-staff agency is responsible for salary payment, benefits, etc. You need to register with the temp-staff agency, but the agency will also follow up and support you by introducing you to the client company and providing support and negotiation during the work period. The client company will provide you with work instructions related to the actual job.
The type of employment contract with a temp-staff agency differs depending on whether it is a “registered-type temp-staff” or a “permanent-type temp-staff” contract. In the “registered dispatch” type, which is the most common type of dispatch employment, an employment contract is concluded with the dispatch company once the client company has been decided upon. The employment contract stipulates the salary, job description, dispatch period, etc. Based on the contract, you will work for the client company. When the dispatch period ends, the employment contract with the client company also ends. On the other hand, the employment contract for “permanent dispatch” is made with a dispatch company for an unspecified period of time, so the employment relationship does not end when the dispatch period ends. Here, we will compare this type of dispatching with the “registered type dispatching” in which the employment contract is concluded with each client company.
What is Contract or Keiyakushain means?
A contract employee is an employee who has signed a “fixed-term labor contract” with a fixed term of employment.
As a general rule, the Labor Standards Law stipulates that the maximum term of a fixed-term labor contract is three years. Therefore, the contract period offered by a company is three years at most. In practice, many companies conclude a labor contract for one year and decide whether to renew or terminate the contract every year.
If the contract is renewed upon agreement with the company, employment continues for the new contract period. On the other hand, if the contract expires and is terminated without renewal, it is treated as a resignation.
If your contract is terminated, you will have to look for a new job. To avoid the sudden notice of contract termination, companies are instructed by the Ministry of Health, Labor and Welfare (MHLW)* to inform workers at least 30 days prior to contract termination if their fixed-term labor contract has been renewed three times or more, or if the contract has been in effect for more than one year.
*”Standards Concerning the Conclusion, Renewal, and Termination of Fixed-Term Labor Contracts” <MHLW notice>.
In addition, there is no mention of the employment category of “contract employees” in the law. Depending on the company, fixed-term contract employees may be referred to as “contract employees,” “associate employees,” “part-time employees,” “temporary employees,” “partner employees,” “contract employees,” or “non-regular employees. Even if the same name is used, it may have different meanings in different companies, so it is necessary to confirm the meaning of the term.
More reading: Understanding and Utilizing Labour Laws (Basic knowledge necessary for work)
Advantages and Disadvantages
Most of the hakenshain earn more than a regular employee. Especially in the IT field, annual income is high compared to regular employees. It is easy to change your career when you are ready to leave. And you can decide your career path. From time to time dispatch working place will be changed and you can gain various experience in different working style. And easy to get the opportunity than regular staff.
But the bad thing is already you have a deadline to work with that particular company. An employer can easily dropout you off when they don’t need your service anymore. You have fewer working holidays compared to a regular employee. If you are a registered type temp staff, you need to pay your inhabitant tax to the city office on your own. For an instant, ‘特別区民税・都民税 (普通徴収)’ by your own. It’s come from your city office and separated to 4 times. So it means when you are a regular employee company will pay on behalf of yourself, and the total amount will be divided 12 times. You need to be careful when you pay yourself on time.
Contractors Temporary Employees
| salary | There are many cases where there is a monthly salary system or an annual salary system | There are many cases where the hourly wage system is used(for IT engineers, you may pay by fixed annual income divided by 12) |
| Transportation | It is often paid separately | There is often no separate payment (included in the hourly wage) |
| Bonuses | You may be paid | Basically none |
| paid vacation | Conform to the treatment of the employer | Conform to the treatment of the dispatch company |
| Chain of command | Companies directly employed | Dispatch destination company |
| After the expiration of the contract period | Need to find a new job on your own | You may be referred to other jobs by a temporary staffing company |
Do you need to learn more. Please leave a comments and let me know. I am happy to share my knowledge and experience with you.
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