Secondment in Japan: Transfers, Dispatch Work, Pay, and Return Conditions
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Category: Work Styles
Authors: Shusaku Yosa
Shukko (出向), or secondment, generally means working for another company while an employment relationship with the original employer continues. The term may also appear in tenseki shukko, a permanent transfer that ends that relationship. Check the actual employment arrangement rather than relying on the label.
When receiving a secondment notice, clarify duties, pay, duration, and return conditions. Remaining employed by the original company does not necessarily guarantee a return to the same department or position.
Secondment, permanent transfer, and worker dispatch
Point | Zaiseki shukko: secondment with the original employment relationship retained | Tenseki: permanent transfer | Haken: worker dispatch |
|---|---|---|---|
Employment relationship | Employment relationships with both the original and receiving companies | Employment with the original company ends and moves to the new company | Employment contract with the dispatching employer |
Daily instructions | Receiving company | New employer | Client company |
Returning to the original company | Check duration and return conditions | A return is not an automatic premise | Depends on the dispatch and employment contracts |
Employee consent | Examine the basis for the instruction and the individual conditions | The employee's individual consent is required | Check employment conditions with the dispatching employer |
Pay and treatment | Check the arrangement between the companies | Check the new employment terms | Check terms with the dispatching employer |
Secondment also differs from changing departments within the same company or moving to another work location. It does not automatically mean demotion. Purposes can include development, support for a group company, personnel exchanges, or maintaining employment. Assess the duties and future treatment, rather than the name alone.
Can an employee refuse a secondment?
For secondments that retain the original employment relationship, Article 14 of Japan's Labor Contract Act makes an order invalid when it constitutes an abuse of rights, considering matters such as necessity and the circumstances of selecting the employee. The article does not itself give employers unrestricted authority to order secondment.
The ministry's handbook explains the need for individual consent or appropriate provisions in work rules or collective agreements covering pay, working conditions, duration, and return arrangements with consideration for employees' interests. A single sentence mentioning secondment in work rules does not settle every case.
Permanent transfer raises a separate consent issue because the original employment relationship ends. Do not apply explanations of Article 14's retained-employment secondment directly to permanent transfers.
Tell HR about childcare, caregiving, health, location-limited employment terms, or major changes in treatment that affect your situation. Discuss alternative arrangements. If you are uncertain, take the documents to a union, a labour bureau's general labour consultation service, or a lawyer.
Duration and return conditions
Duration depends on the purpose and agreement. If you are told only “a few years,” clarify the end date, extension process, and conditions for returning early.
- Duration: What are the start and end dates? What limits and criteria apply to extensions?
- Return assignment: Which department and role are expected after the secondment?
- Early return: Whom should I contact about family, health, or duty changes?
- Evaluation: How will the receiving company's evaluation affect raises or promotion at the original employer?
- A possible permanent transfer: What explanation and consent process would apply if this were proposed later?
Salary, bonuses, and allowances
The original employer may pay salary while the receiving company reimburses costs, or the receiving company may pay directly. The payer and the company ultimately bearing the cost are not necessarily the same. Focus on the amount and applicable rules.
- Base salary and bonuses: Applicable pay rules, assessment method, and payment dates.
- Overtime: Where hours are recorded, who approves them, and how premiums are calculated.
- Allowances: Eligibility for secondment, relocation, housing, and commuting allowances.
- Expenses: Moving costs, living separately from family, trips home, and business travel.
- Benefits: Housing, leave, health checks, and other available programs.
- Retirement benefits: Service-period treatment, applicable rules, and the payer if you leave during secondment.
Even if annual pay is described as unchanged, changes to bonus or allowance conditions may affect the actual amount. Ask for the estimate and the assumptions used to calculate it.
Insurance and paid leave
Procedures depend on pay arrangements and the actual employment situation. Confirm enrollment and filings with both companies.
- Employment insurance: Which workplace pays the main salary, how wages are aggregated, and who handles procedures.
- Workers' compensation: Work is generally treated as the receiving company's work; also check the accident-reporting contact.
- Health insurance and employees' pension: Eligibility and remuneration treatment, including procedures for employment at multiple establishments if both companies pay remuneration.
- Annual paid leave: Remaining balance, continuous service, grant date, request process, and the company maintaining records.
In retained-employment secondment, the original employment relationship continues. Do not assume paid leave disappears. For a permanent transfer, check any carryover arrangements and new leave conditions under the agreement.
What to do after receiving a notice
- Read the notice and the relevant secondment rules and employment-contract provisions.
- Group questions into duration, treatment, working conditions, and return arrangements.
- Explain family or health circumstances and conditions you cannot easily change.
- Record HR's explanation and confirm agreed terms in writing.
- If the changes create significant disadvantages, seek advice with the documents available.
An example request: “I would like to confirm pay, working hours, duration, and duties after returning. Could you share the explanation documents and applicable rules? Relocation would be difficult because of caregiving responsibilities, so I would also like to discuss alternatives.”
Frequently asked questions
Can I submit my resignation to the receiving company?
Check the employment relationships and who handles resignation procedures. Contacting only the receiving company may not complete the process; consult the original employer too.
Does an extension automatically make it a permanent transfer?
No. A longer assignment does not by itself change the employment arrangement. Distinguish an extension from a change in employer and check the explanation and agreement.
References
Information was checked on October 1, 2026. Individual application depends on contracts, work rules, and circumstances. Sources are in Japanese.
