Director of a Japanese company is not an “Employee”

In Japan, a Representative Director of a Japanese company is not an “Employee” and is thus prohibited from coverage under statutory Workers Compensation, although he is eligible to join Employee Pension Insurance (EPI) and Employee Health Insurance (EHI) systems. However, the company can replicate the Workers Compensation benefits through a combination of life insurance, personal accident insurance, and long term disability insurance.

Post-acquisition Harmonization of International Employee Benefits

Following an acquisition, the acquiring company may be eager to combine employee benefit plans for improved efficiency and employee harmony. Important considerations are: 1. Until all employees are employed by one registered business entity, they cannot be covered under one benefit insurance contract 2. Pre-acquisition employee benefit terms and conditions normally must be retained, often leading to “grandfathered” benefit terms for some employee groups.