Dismissal of employee in Japan

An employer is only allowed to dismiss an employee if there are objectively reasonable grounds for dismissal, and dismissal is deemed to be appropriate in light of socially accepted ideas. All possible grounds for dismissal must be clearly stated in the work rules if the dismissal of an employee is to be valid. Termination of an employment contract by the payment of a certain amount of money is not recognized as a matter of course by law (except where an amicable settlement is reached between the parties concerned). If an employer wishes to dismiss an employee, the employer must give the employee at least 30 days’ notice. If the employer wishes to dismiss the employee summarily and without notice, the employer must pay the employee 30 days’ wages at the time of dismissal (notice allowance).