Tied down to company apartment, is paying 260 000yen for breaking the lease and early contract termination even legal?

My current job is making me miserable. So, so miserable.

I’m new to Japan and I only started a few months ago and I was the typical newbie gaijin with rose-colored glasses who was just excited to get to live in Japan for 1 year, so I agreed with everything my company suggested – including living in a company apartment (which I have since realized was a bad, bad idea. Always find your own!!) Now I want to quit this job really, really badly but I’ll have to pay the security deposit (3 months rent which is approx. 60 000yen per month so 180 000yen in total) and other expenses (no specified amount, very vague in contract so I have no idea what the exact amount of these “related expenses” is) for breaking the lease because I’m the first employee to live in the apartment. That’s a lot of money.

I will give a 1 month notice before leaving and I don’t mind not getting my final paycheck due to the deductions. As long as I get to get out of here.

My main and only concern is that the deductions will be so high that my last paycheck won’t be enough to cover the costs and I’ll have to pay many more thousands of yen extra from my own pocket.

Has anyone else had to pay their company for breaking a lease/contract termination early? Is a company asking you to pay that much even legal? (approx. 260 000yen in total costs)

How much did you pay? Should I be worried?

11 comments
  1. What are the details of your contracts? You should post those so we can try to help you out.

    You should also ask these questions on r/japanlife and r/japanfinance. They will be better equipped to help you figure out what’s ok or not, but again, we need to know the details of your contract, so maybe you should write it in the post.

    Other resources would the ministry of labor (I believe they offer you translators depending on the region) and an union. I wouldn’t announce my resignation without knowing what are my rights/obligations in this situation. Depending on when you arrived in Japan you might have to pay your resident tax now in July, so again, gather as much information as possible, before making a final decision.

    Good luck.

  2. I have no experience with company apartments but making you pay the security deposit makes no sense to me. It’s a deposit, you’re supposed to get it back after you move out assuming there no damage.

    Usually you have to pay cleaning fee and maybe 1-2 months worth of rent as penalty depending on your contract(if you don’t give enough notice).

    I heard some apartments where you don’t have to pay key money and security deposit have a higher penalty if you break contract. I’m not sure about this, maybe someone can chime in.

  3. Sounds dodgy af, I’d probably contact the labor bureau to ask if any of that’s legal (doubt it).

    Not a recommendation, not a lawyer, but if that were me, I’d just pack up and disappear one night, and go elsewhere. Pursuing you for such a sum would probably cost them the same in lawyer costs etc, and that’s if it’s even enforceable.

  4. Are you trying to leave Japan altogether or just this living situation and this job?

  5. I had trouble with my previous job, and my previous apartment too as it was a contract signed by my ex-boss. I talked with General Union, who were really helpful in informing me of my rights, gave me advices and if you do join the union they can send your employee warning letters and all. My ex boss was definitely intimidated. That and also the ministry of labour. I didn’t had to go to ministry of labour but just letting you know your options. Honestly if you’re gonna leave japan, what can they do if you don’t pay? I’m just throwing assumptions here but do Show these organisations your contracts etc so they can advice you better. Good luck

  6. This is probably less to do with your company and more to do with the general rules for renting in Japan. There are strict penalties for moving out early, I know Ive had to pay a few myself. Not sure about penalties for breaking employment contract though.that sounds iffy.

  7. I think a lot of people in here don’t have experience with company housing. The way it works is the employer makes a lease with the rental company and the employee signs a contract with a employer. This is done because the employer can set up everything beforehand and the employee won’t need to find a guarantor.

    This also means that the employee doesn’t pay for the apartment or any of the move in fees (key money, deposit, etc.) directly. The employer pays for everything and takes the money out of the employee’s pay check.

    So, when the OP is talking about paying money, it’s because they are breaking contract. Since they are leaving early, for Leopalance, there is a break contract fee of 1 to 2 months rent ([https://support.leopalace21.com/hc/en-us/articles/360050348994-Guidance-for-moving-out-individual-contracts-](https://support.leopalace21.com/hc/en-us/articles/360050348994-Guidance-for-moving-out-individual-contracts-))

    Plus, the company that the OP works for is probably adding in the key money or the cleaning fee making it 3 months rent.

    All of this money is something that the OP would have had to pay (or paid already when they move in but didn’t because their employer paid for it) if they leave a housing contract early, even in a private lease. It feels more bad because their employer is enforcing the fees, but the fees are very normal to Japan.

  8. Sorry that Interac has such a terrible housing a agreement. A solo contract with LEO isn’t as bad as what Interac negotiated.

    I got out a few months ago and the wait period was only 6 months to leave without penalty. Double check the contract, but if it’s a year you’re not getting out.

  9. >Always find your own!!

    That’s going to be very difficult for someone who

    1. Isn’t in Japan.
    2. Doesn’t read/speak Japanese
    3. Has no work history/documentation
    4. Has no Japanese friends willing to sign off as guarantor or an emergency contact.

    ​

    >I’ll have to pay the security deposit

    What do you mean *pay back*? It’s usually paid when you pay your initial fees (初期費用). I don’t know the specifics of your situation, but it sounds like you borrowed that money… soo yeah.. You need to pay it back.

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