Black Companies in Japan: Everything You Need to Know

If you want to avoid one thing when job hunting in Japan, it's "black" companies.

For some people, getting a job in Japan is a dream come true. Known as a global leader in technology, it’s not surprising that tech jobs are very much in demand in Japan.

It's true — tech job openings are everywhere in Japan. But before you apply, you have to do your research. It's imperative that you take note of what kind of company you’re applying for. There are great companies in Japan, but there are also what's known as "black companies".

So how can you identify these companies? More importantly, how can you avoid joining one? Read on to learn everything you need to know about black companies in Japan!

What is a Black Company?

If you’ve been considering working in Japan, you may have come across the term “black company” (or "burakku kigyou"). But what is a black company?

Well, there's no exact definition of what a black company is. However, the Japanese Ministry of Health, Labor, and Welfare provides three general characteristics for identifying them.

1. Long work hours and unreasonable quotas are demanded from their employees.

2. Little to no compliance with Japan’s Labor Standards Act

3. Employees are always at a disadvantage when it comes to company decisions.

Put simply, Japanese black companies are companies that do not follow labor laws. That means they tend to have poor working conditions and an unhealthy work culture — and they should be avoided.

These companies are known to take advantage of their employees, often leading to employees having no work-life balance or in extreme cases, even death because of work stress.

What is karoshi in Japan?

Unfortunately, there have been enough instances of death due to overwork in Japan that there's a special term for it: karoshi.

Japan is known for its serious work ethic. Historically, long work hours and overtime have been normal occurrences, and even considered admirable by some companies and employees. In 1990, average working hours in Japan were 2,124 hours per year – 500 hours longer compared to countries like Germany and France.

However, longer hours come with more stress and health problems. In fact, WHO stated that long working hours are the cause of 745,000 deaths from stroke and heart disease in 2016.

Stress from work can cause serious mental health problems and sometimes leads to karoshi.

To lessen the number of cases of karoshi, the National Defense Counsel for Victims of KAROSHI was built. It's made up of lawyers and other groups, and they help anyone suffering from work stress or overwork.

Japan Black Company Awards

Creating a place for people to get help is a great way to lessen karoshi cases in Japan. But it doesn't solve the fundamental issue creating the stress in the first place: Japanese black companies.

In recent years, there have even been "awards" given to companies considered to be black companies by people in Japan. Founded in 2012, the Black Company Awards aims to raise awareness about black companies and expose their problematic practices.

Every year, they release a list of that year’s most “black” companies with the winner getting the “Most Evil Corporation” award. The winners are announced publicly, and they receive a copy of Japan's labor laws.

Characteristics of a Black Company

The nominees and winners of the Black Company Awards are chosen based on several factors. These factors are characteristics of a common black company in Japan.

1. Long Working Hours

Black companies in Japan are almost always identified by their long working hours. The general rule is that normal working hours should be 40 hours a week. If an employee works overtime, it must not go beyond 45 hours per month.

In addition, the government has set a line at 80 hours per month of overtime. Going beyond this limit is a danger to the health of the employees and it can even lead to karoshi. Any company that regularly goes beyond the overtime line are considered black companies.

Of course, compensation for overtime is required as well. Companies that force workers to do large amounts of unpaid overtime can also be considered black companies.

2. High Turnover Rate

Another sign that a company is a black company is the turnover rate. A high turnover rates means that there are constant changes in the company's personnel.

However, if large numbers of employees are leaving, and there are constantly new recruits, chances are the workplace is the issue. Problems like unhealthy work culture, low wages, or harassment within the employees are things that can lead an employee quit.

3. Low Salary

Compensation is an important factor when looking for a job. It is also a great way to know if the company you’re applying for is a black company or not.

A company that pays its employees below the minimum wage, or too low for the position, does not value its employees. These companies are less likely to offer fair raises, and far more likely to have a stressful work environment.

If something is too good to be true, there's usually a catch.

Another thing you must look out for is salary increases. If existing employees are not receiving salary increases after years of employment, that's another sign of a black company.

4. Little to No Vacation or Paid Leave

Employees are entitled to holidays and paid leave. Any company that doesn’t allow their employees to take paid leave, or a holiday, is a black company. In fact, they are a black company if they refuse their employees the benefits they are entitled to.

A company who also asks you to work when you are on a holiday is also a red flag. This just shows that the company does not respect your time or care about their employees' well-being.

5. Short Recruitment Process

While we wish for our job interviews in Japan to be a breeze, a short recruitment process can be a characteristic of a Japanese black company.

In Japan, the job recruitment process is usually long. It can include tests, interviews, and seminars. University students even start as early as the beginning of their final year when job hunting.

However, it's understandable that foreigners have a shorter time to look for jobs in Japan since they may have to deal with expiring visas.

Always remember, be wary of things that are too good to be true.

6. Verbal Abuse and Power Harassment

Power harassment (パワーハラスメント, or "pawahara") is the abuse of authority by someone in a position of power. It’s a legal violation in Japan, yet in traditional black company environments, it may be dismissed as normal workplace behavior.

It can look like:

• Being yelled at or publicly humiliated in front of colleagues
• Passive-aggressive behavior from managers presented as "discipline"
• Threats to cut pay or not renew contracts as pressure tactics
• Intimidation used to stop workers from asking about their rights

Foreign workers are particularly at risk for this, since language barriers and concerns about visa status can make it hard to push back.

If you experience or witness harassment, document each incident in detail. Written records, screenshots, and timestamped notes can all be useful if you need to escalate things further.

7. Unclear or Misrepresented Job Descriptions

Black companies often advertise one role and assign something different once you start. For foreign workers on specific work visas, being assigned duties outside your designated job category can put your legal status at risk.

Common patterns to watch for are:

• Job postings using vague language like "light work" or "varied duties"
• Being shifted into sales, manual labor, or unrelated tasks shortly after joining
• Explanations like "we all help each other" used to justify changing responsibilities without consent

Request a written, detailed job description before signing anything. If your duties start changing without explanation, ask for your role to be documented clearly.

8. Illegal or Unfair Contract Clauses

Black companies frequently use contracts that violate Japan's Labor Standards Act and count on workers, especially foreigners, not knowing their rights.

Common violations include:

• Clauses that eliminate overtime pay or paid leave
• Using probation periods to withhold legally required benefits
• Verbal promises that contradict what is written in the contract
• Pressure to sign documents without translation or time to review

Remember, any clause that contradicts the Labor Standards Act is not enforceable, even if you’ve signed it.

This goes without saying, but if you are asked to sign a contract you don’t fully understand, or told "just sign now, we'll explain later," treat that as a serious warning sign.

9. Exploitative Subcontracting Structures (IT)

For IT engineers, Japan's tech industry often has multi-layered subcontracting schemes (多重下請け構造), which can unfortunately be used to exploit workers.

In these arrangements:

• Developers are placed at client sites through intermediary agencies, with little connection to the company that originally hired them
• Salary return rates can be as low as 50% of what the client is actually paying for your work
• Workers often receive little information about a project before being assigned, and may go unpaid during gaps between projects
• Engineers at client sites are frequently left without adequate support from their employing company

Legitimate IT companies are transparent about how they staff projects and provide consistent support to employees at client locations. If a company can’t clearly explain how compensation is calculated or how project assignments work, that is worth investigating before you sign.

10. Promised Benefits That Never Arrive

Black companies might often make generous promises during hiring, such as relocation bonuses, housing support, or performance pay, and quietly walk all of these things back once you actually start working.

Typical patterns to look for include:

• Verbal commitments that are not in the written contract
• Benefits described as "company policy" with nothing in writing
• Vague reassurances like "we'll sort that out after probation"

In Japan, verbal promises are not legally binding. If a benefit is not written into your contract or a separate official document, there is no obligation for the company to provide it.

So, always get commitments in writing before accepting an offer.

11. Improper Retention of Documents

Some companies, particularly those employing foreign workers, illegally attempt to hold onto employees' residence cards, passports, or other identity documents. Keep in mind that under Japanese immigration law, you are required to carry your residence card personally at all times.

So, no company has the right to hold your documents on your behalf.

Companies that request custody of your documents often use this control to intimidate workers or make it harder to leave. Always refuse such requests and keep your immigration documents in your own possession.

Japan's work culture has been changing, particularly in tech. Many modern companies, including those listed on Japan Dev, operate with international work environments, flexible policies, and a genuine commitment to work-life balance.

So, be careful, but don’t worry. The characteristics we described above are warning signs to be aware of during your job search, not a description of how a typical tech company in Japan operates today.

How to Avoid Black Companies in Japan?

Now that you know about black companies, how do you actually avoid them? The tips above will help you identify them, but here are some more concrete things you can do to make sure you don't accidentally join one.

Company Evaluation Websites

Do research on the company’s reputation. There are plenty of websites that collect assessments of former and current employees of the company.

Unfortunately, most sites are in Japanese but you can translate them if necessary.

Openwork: This website has a large database of company reviews and other data that will be extremely helpful in your search. It's the closest thing to the Japanese "glassdoor".

Jobtalk.jp: This website has over 3 million reviews and over 700,000 members all posting about their experiences working in their old workplace. You can see their reviews on annual income, employee benefits, overtime hours, work-life balance, and more.

Lighthouse: Lighthouse describes itself as one of Japan’s largest company evaluation websites. With more than 50 million views, Lighthouse presents company evaluations in graphs and tables. This makes the information easier to understand.

CareerConnection.jp: Similar to Lighthouse, this website also presents their reviews in tables and graphs. You can find out about a former employee’s annual income, bonuses, and even interview experiences.

For Tech Companies: Use Japan Dev

We built Japan Dev from the ground up to help people avoid black companies and find jobs with great work-life balance.

Our curated list of tech companies in Japan showcases vetted companies that hire foreigners and provide a genuinely positive work environment.

We don't post jobs from companies with low salaries or poor work environments, so rest assured: if a company is on Japan Dev, it's not a black company.

Meetups

Meetups are not only a great way to network, but they're also a great way to get information about the industry.

A lot of tech professionals join them and there’s a good chance you can meet former employees of the companies you want to apply to.

These meetups can connect you to other people working in Japan as well. Especially as a foreigner, it’s a great way to know how a company would treat foreigner employees. And get to know a company through the eyes of a foreigner as well.

Check Out the Company

Another thing you can do is research the company. The simplest way to do this is to start by checking their website.

Nowadays, almost all businesses have a website or at the very least, a social media presence.

Check the company's job openings. As mentioned before, high turnover rates are a characteristic of a black company. If a company has a suspiciously large number of job openings, you may want to look into that.

Next up, you can check out the company’s office. If you get the chance to visit, there are three things you should look out for.

First is the appearance of the office. Sometimes the state of the office will help you evaluate the company, and whether they care about their employees or not.

Next is the atmosphere of the office and its employees. Interact with the employees to see if they’re rude or unfriendly. Do they seem happy to be there? Get a feel if the workplace environment has any tension among its employees.

If you’re there for an interview, ask about the workplace culture. If the interview tries to change the subject or avoid the question, it might mean there is a problem with their culture.

An interviewer putting too much emphasis on a company's good points can be a warning sign. as well This could mean that they're trying to hide the company's bad points.

Know the Labor Standards Act

Lastly, you should know Japan’s Labor Law to protect yourself. Even if you are not a lawyer, familiarize yourself with its important points. You can read a translation of the Labor Standards Act here.

Spot the Red Flags in a Job Interview

An interview is one of your best opportunities to assess a company before committing to it, but you have to know what to look for. Here are some of the most common warning signs to watch for:

• Heavy emphasis on "passion," "dedication," or "fighting spirit": Overusing these themes in conversation, with little mention of actual compensation or working conditions. This type of framing is often used to prime candidates into accepting poor pay or excessive hours.
• Vague or evasive answers about overtime: If an interviewer can’t tell you what average working hours look like, or changes the subject, that is worth pressing on.
• An unusually short recruitment process: Reputable companies take hiring seriously. A process that skips standard steps or pressures you to decide immediately may indicate high turnover that the company is scrambling to fill.

• Illegal or inappropriate questions: Questions about your nationality, family situation, religion, or political beliefs may be considered inappropriate due to their potentially discriminatory nature.

  Asking whether you plan to get married or have children is also problematic and may even be illegal. Using those responses to influence hiring decisions can violate the Equal Employment Opportunity Law, as it may amount to discrimination.

  Asking any of these questions signals broader compliance problems within the organization.

  That said, it’s perfectly acceptable for an employer to ask about your residence status. Companies are required to confirm that candidates hold a valid work visa that allows them to perform the role, so this type of question is standard and lawful.

• Excessive promotion of how great the company is: Interviewers who oversell company culture without detail may be working to distract you from its shortcomings.
• No sign of clear support for foreign employees: If the company cannot explain visa procedures, multilingual documentation, or onboarding for international hires, they may not be genuinely prepared to employ you.

Ask These Questions To Be Sure

Take control of the conversation by asking direct questions. These tend to reveal a lot about a company's culture:

• What does a typical workday look like for someone in this role? Ask this question to get a realistic view of daily expectations beyond what is written in the job description.
• What is the average number of overtime hours per month? A company that can’t or won’t give a clear answer is definitely one worth being cautious about.
• How does the company handle paid leave requests? Ask about actual utilization rates, not just what they say is available. A healthy company encourages employees to use the leave they are entitled to.
• Can you tell me about the team I would be working with? You can try to get a bigger picture by paying attention to how the interviewer describes team dynamics. You might also be able to see a pattern (if there’s any) in team members leaving the company recently, which is worth following up on.
• What does career progression look like here? Companies that invest in their people will have a clear answer to this. Black companies often don’t.
• What support does the company provide for foreign employees? Good companies have specifics, like visa sponsorship processes, Japanese language support, and multilingual HR resources. Vague responses are a red flag.
• What is the company's turnover rate? Reputable companies are transparent about this. A company that deflects the question is likely to be one where many people have chosen to leave.

To learn more about preparing for interviews in Japan, check out our guide on how to prepare for casual interviews and a full overview of common Japan job interview questions.

Words and Phrases to Look Out For

It’s also worth noting these additional red flags below. Certain language patterns in job postings and interviews have become associated with problematic workplaces in Japan. While not a definitive list, here are a few things to consider in addition to gauging the overall energy during your interviews and interactions:

• "We're like a family here" can potentially signal a culture where personal boundaries are not respected, and employees are expected to sacrifice their time out of loyalty. However, this is highly dependent on the company culture, as some workplaces have employees who are professional and genuinely supportive of each other.
• "We need someone with passion" or "We value fighting spirit" is often used to frame excessive demands as a character test rather than a fair exchange of work for pay.
• みなし残業 (deemed overtime) or 固定残業 (fixed overtime) without a specific hour limit stated can be legitimate arrangements, but vague descriptions can be used to avoid paying actual overtime beyond an undisclosed ceiling.
• "Immediate start" or "Urgent hiring" is not always a red flag on its own, but worth noting alongside other warning signs, as it can indicate that the company is constantly losing staff.
• "Young team" or "Everyone is in their 20s" can indicate that experienced employees are not staying long enough to progress at the company.
• "You should be grateful for this opportunity" is a particularly toxic sentence when directed at employees. Fair pay and respectful treatment are not rewards. They are quite literally the baseline of any legitimate employment relationship.

The good news is that most companies on job boards catering to foreign professionals, including Japan Dev, are modern workplaces that do not use this kind of language. Still, priming yourself to recognize these patterns will make you a more confident interviewer anywhere.

If you’d like to read more about interviewing for jobs from a technical standpoint, as a developer specifically, our article on overcoming tech interviews and coding assessments is a great resource.

Leaving a Black Company

Let’s say that despite all the research you’ve done, you find yourself employed by a black company. What do you do?

The first thing you should do is talk to your employer or the HR department. In fact, Japanese companies with 300 or more employees are now required to have an internal reporting system. If you have any complaints about your company or your coworkers, handle it internally first.

If that does not work, or your company does not have an internal reporting system, you can ask for help from the government. The government has set up aWorking Conditions Consultation Hotline that foreigners can use. The hotline provides consultations about work conditions in Japan in 14 languages including English, Spanish, and Vietnamese.

But if the company you’re working for is truly a black company, the best thing to do is to quit. Japanese black companies are known for not making it easy for their employees to leave. However, under the law, companies cannot stop you from leaving. So don’t believe companies that say that you cannot quit — it's your right.

Before leaving the company, make sure to use all your paid leave and get your salary in order. If they refuse to give your salary, you can always seek help from the Labor Standards Inspection Office.

Then it's time to find a new company. Follow this guide and you'll be sure to find one far better than the black company you left.