Is it legal to cancel an employment contract more than a month before the joining date?

I am a software engineer currently working in Sapporo, Hokkaido. I want to change jobs and relocate to the Tokyo area. I found a job in a startup offering a salary of 5 million yen and signed the employment contract a week ago. However, during my search, I realized that the cost of living in Tokyo is much higher than in Sapporo. Additionally, I discovered that renewing my visa through a startup and obtaining a visa for three years or more could be very difficult.

Now, I regret signing the employment contract hastily, and I want to withdraw from the agreement.
Is it possible to cancel the contract before the joining date(November )?
Are there any legal consequences?

6 comments
  1. If you just don’t show up, there will probably be no legal consequences, but you will very likely be black listed.

    If you call them ASAP and tell them that the situation has changed and you can’t take the job and apologize profusely, then they will probably say しょうがない and let it go.

    The sooner you let them know, the better.

    I hope everything works out okay with you, but do realize that this is a big deal. Sadly, a lot of foreigners seem to do stuff like this, and it contributes to companies not ranting to give them a chance in the first place. Companies spend a lot of time and effort to find people to hire, so they are not pleased when they do things like accept an offer but then don’t start. Having said that, it’s still better than starting and quitting 3 months later, or just not showing up in the first day. Legally speaking, I think you should be fine.

    Separately: I live in Tokyo, but have visited Sapporo numerous times. Anecdotally, it didn’t seem any cheaper to me. If anything, fresh food was cheaper, but property prices not so much. Most everything else (f.e. stuff at bic camera) had prices that are standardized nation wide, and a lot of places charge extra for shipping to Hokkaido.

    I’m considering buying a place in Hokkaido, so…

    I would be interested to know what you find to be more expensive in Tokyo vs Sapporo.

  2. Yes, you can cancel, and no there are no legal repercussions. If you are going to pull out, the sooner the better for everyone. You can just be honest and say that upon further research, you can’t afford to live in Tokyo on that salary. Maybe angle for a remote position if you want that and it’s possible…

    As another poster said, yes it contributes to foreigners appearing less hirable, but that’s not really your problem.

  3. It’s crazy that you didn’t expect or research the cost of living in Tokyo before signing an employment contract…

  4. 5m seems reasonable for entry level. Just dont live in the center of Tokyo.

  5. As long as it’s more than 2 weeks before your start date you are fine. Earlier the better.

    Relevant law:

    民法627条では、期間の定めがない雇用の場合、いつでも解約の申し入れができるとしています。解約の申し入れから2週間が経つと、契約が終了します。これは、基本的に入社後の社員を想定していますが、内定者にも同様に適用されます。

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