So, I started a baito and they only pay cash in hand. There is no contract either.
I asked the tenchou about making a bank deposit and he was like “sure, you may deposit it if you want to, you can tell the bank you work for us”.
Some people have told me that this is illegal and I should look for another job because without a contract they could just fire me and not pay me anything.
Some people have told me that it’s better this way because I won’t be paying taxes.
I am so lost.
I’m here with a working holiday visa, came in February and plan to leave the country in a year.
6 comments
Paying in cash is not illegal in and of itself, but they need to be giving you pay slips indicating how much you are being paid as well as withholdings for tax purposes. (This is pursuant to tax law, rather than labor law.)
A written contract is not actually required, but you do need a written notice of working conditions (hours, wages, pay day, etc.) in writing, though this can technically be an email stating these things. This is required by labor law.
If you are not getting these and want to confront your employer, I can point you to the relevant laws.
ETA: Your employer should be withholding 20.42% of your income as income tax.
You are here for working holiday so… what’s the harm?
May I ask what kind of job that is?
I am guessing that you are not employed as a part-timer.
Are you receiving the amount of taxes, health insurance, and pension deducted from your salary?
If so, I assume you could file at the end of the year and get some of those amounts back.
Perhaps that is not a legitimate employment arrangement.
“I’m here with a working holiday visa”
It’s not illegal to be paid in cash as long as the correct taxes are paid.
On a working holiday visa you’re defined a “non-resident for tax purposes” and thus need to pay 20.42% from every ¥1 earned from an employer/client domiciled to Japan.
However, as you’re a non-resident for tax purposes your domiciled Japanese employer is supposed to withhold 20.42% at source.
So, are they withholding 20.42% of it at source I.e phong you 79.58%, Or are they paying you 100%?
If 100% you should tell them it’s their responsibility to withhold that 20.42%.
Up until about 20 years ago, all jobs were paid with cash. ALTs told me about getting a ¥250,000 cash envelope (after deductions) and worrying about getting to the bank on time to deposit it all.
The good news is: they’re not deducting taxes. The bad is: you’re not paying taxes.