Hey guys, I have lost my job here in Japan, here comes a challenging time, what to expect?
First of all I got Permanent Residency, this alleviates a lot of troubles you can have on top of many others that I will try to list here and tell you what you should do or be aware of.
If it is not the case for you, depending on your Visa expiration date things can get even more ugly.
- Here comes the day…
You are working like any other day then suddenly a meeting without title or description pops up on your schedule with you, HR and your boss's boss… something's fishy here.
And yeah, following a fusion/acquisition of businesses your role is deemed redundant and you are on the chop block.
Here comes the negotiation phase for your leave, since it is the company that let you go (会社の都合で退職) you are to get a package (退職金).
Typically 3 months of salary.
You also can choose what to do with your paid leave left, either use those days so you are out of the office sooner, or work until last day and get paid for it. Note that some companies can and will refuse to pay and make you use the days.
But there are some twists from there.
- Getting your package
The company won't directly give you money, there is a process with a 3rd party called Chutaikyo (中退共) they will give you the money after you give a form and some other papers given by your now former employer.
Send with the letter that should be provided, the form, a copy of your Zairyuu card or My Number card, a copy of your bank book (通帳 1st page), maybe other things but that should do the trick.
But that is only the money part which is quite easy, here comes the painful parts
- Hello work (unemployment insurance benefits)
Be VERY careful about the date you leave effectively the company, I will tell you my case so you get the picture.
My last day was in the middle of the month, I got my papers regarding my end of employment the 30th of the month, accounting and HR have done the paperwork during the payroll.
Naturally I have gone to Hello work, the Japanese government's Employment Service Center that also manages unemployment insurance benefits that same day.
I got registered okay, no problem everything is pretty straightforward if you got all the documentation.
BUT, you need to know that, on this day they will give you a bunch of papers and a date for a seminar session that explain how you must register each month your situation.
This will take place at the end of next month.
the first money you will see will come only at the end of next month, after you have taken that seminar session and give said paperwork dutifully completed for the month that has passed.
Big twist here, you will see that Hello Work only start to count your unemployment insurance benefits starting around the 6th of current month.
If you follow well you see now a problem… "wait, what happens between the middle of last month when you get fired and the 6th of next month?"
Good question, that is the catch, you get nothing, zero, zip, zilch, nada.
So, during negotiations, get to be effectively out of the company a few days before the end of the month, not sooner!
Also note that you will need to do your situation report every month to get your benefit, and do not expect a big sum either (around 200k).
Finally, when you find a new place of employment, you will have to come the previous business day of your first day at this new place to show your job contract and do some paperwork.
- Health Insurance
Loosing your employment means loosing your health insurance too, however you can continue to be insured by the same company, except it will be at your personal expense, that said better be insured, life can play nasty tricks on you.
You can use the general health public insurance (国民健康保険) or continue with the insurance of your old company, coverage is generally better but costlier.
You will need to tell your insurance company that you want a personal continuation (委任継続), your former employer should be able to help you to kickstart the process.
You will have to pay each month the sum, most likely with a bank transfer (振込), you will get some paperwork with all the details, the cost can be seen a bit high for a jobless guy… around 20 to 30k depending on your insurance.
- Taxes
A very nasty part…
Note that your package is subject to taxing, so you wont get the exact amount that was written on your leave contract, expect a quite high rate.
Also now that the government does not have your former company to take a part of your salary each month you will get the bill at your personal address for the year exercise… ouch.
If you are unlucky to have that happened to you during the tax season you will get a combo… 住民税 + 取得税
I had to give like a third of my package here…
- 401k
If you had a 401(k) plan (tax-advantaged retirement account) you will be contacted by the company that manages it, you can choose to personally continue to pay for it or not, but anyway will have to move it to a different kind of account since it is not linked to your former company anymore.
And the funds are still not touchable until you're 60 or retired.
- National Pension System
For your old days too, you now have no more money coming to the national system, so they will get to you sooner or later, you can choose to personally continue to pay for it or not, but this will make a gap in your funding history when you get old enough to retire … you will have to move it to a different kind of plan since it is not linked to a company that paid for you anymore. You can arrange this at your local government office (役所).
It will be restored to the "normal" way of automatic payment from your salary once you get a new job.
- The Kindergarten
This is quite a dirty topic!
Here is my personal situation but, I have a kid under 5 so going to the Kindergarten (保育園).
The kindergarten are for parents that both work and can't take care of their kids between 1 and 5 years old. It is allocated after you apply at your local government office (役所), note that you may have no availability and have to pay more for a different system, the Yochien (幼稚園).
For me, we were lucky to have a kindergarten place… except if you followed my previous statement "for parents that both work" … now that you don't work what happens?
Periodically you have to give a statement signed by your employer that you work from like Monday to Friday, 9am to 6pm, plus transportation time, and so can't nurse your kid at home, it is called shuroshomeisho (就労証明書).
If you are jobless? You have 3 months to find a new job or get your kid expelled of the kindergarten! (退園)
I don't make that up, they consider if one of the parent does not work then you can take care of your kid at home…
Let's not start about the practicality of it to take job interviews, or the fact that you will have to go on the waiting list again even after you get a new job starting.
- Conclusion
Here is the end of this little report of mine, I can write it as I am soon to be employed again, just before the 3 months mark for my kid and the kindergarten…
Let's say, be aware of your surroundings, if your company buys other businesses some shenanigans could happen with your position, and be sure to have some cash around, there is no guaranty you can land a new job rapidly, especially since you typically have to make rounds of interviews like 3 or 4 times… this is extremely time consuming.
Also some periods are better than others to find Job Offers, but that is very volatile, economic context can also be a factor.
I hope it may help some of you that (let's hope not) may be facing such situation.
by Entire_Life4879