Throughout my almost 10 years of working in Japanese companies, there are only two things I genuinely regret or wish I had considered more carefully. One of those is switching from being a full-time employee to a contract employee at one point in my career.

At the time, I didn’t fully understand the implications—after all, the benefits seemed pretty similar. But after a year and a half in that role, I experienced the consequences firsthand when I was told my contract wouldn’t be renewed. So, how did I end up in that situation? Let’s talk about the differences between being a full-time employee (正社員 / seishain) and a contract employee (契約社員 / keiyaku shain) in Japan, using my own experience as an example.

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My Start as a Full-Time Employee (正社員 / Seishain)

The first company I worked for in Japan hired me as a seishain, or full-time, permanent employee. I was incredibly lucky—they handled all of my visa paperwork and I was granted a 5-year visa.

Looking back, this “luck” wasn’t entirely random. It was partly due to my status as a full-time employee and the fact that I had graduated from a Japanese graduate school. These two factors likely helped me secure a longer visa term, which is often viewed as a huge win for foreigners working in Japan. Many foreigners come here to teach English, which most positions are as contract employees on a 1 year contract that renews, not seishin, thus lead to having a 1 year visa a lot of the time.

Being a seishain is highly coveted here. It means indefinite employment with strong job security, and it significantly eases the process of renewing your visa. Let’s break down the details:

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🔹 Seishain (正社員) – Full-Time, Permanent Employee

1. Employment Type:
Permanent employment (no set end date).
Traditionally seen as “lifetime employment” in Japanese corporate culture.

2. Job Security:
Very high. It’s legally difficult for companies to terminate a seishain without strong justification.

3. Benefits:

• Full company benefits (bonuses, raises, retirement packages, housing allowances, etc.)
• Full shakai hoken (social insurance): health, pension, unemployment, and labor insurance

4. Career Path:

• Clear opportunities for promotion and long-term growth
• Training and development (though this can vary, especially at smaller companies)

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Why I Made the Switch (And What Happened)

Even though I had stability, after a year I realized the job wasn’t the right fit for me. The company culture and type of work didn’t align with what I wanted, and I was offered a new opportunity at a more creative, established company. They were launching a new venture and needed people to help get it off the ground—something that sounded incredibly exciting to me.

I accepted the offer, starting on a 3-month probationary contract with the understanding that I could become a full-time employee after that. It seemed fair—I had the skills, the education, the work ethic, and I was confident I could prove myself. What I didn’t anticipate, though, was the difficulty I’d have with my manager, communication issues, and mismatched expectations.

At the end of my probation, I wasn’t offered full-time employment. Instead, they extended my contract for another 3 months… and then a year after that. Eventually, the venture I was working on shifted direction, and there was no longer a need for my role at the company. My contract wasn’t renewed, and just like that—I was out of a job.

That’s when I truly felt the instability of being a contract employee.

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🔹 Keiyaku Shain (契約社員) – Contract Employee

1. Employment Type:
Fixed-term contracts, usually 6 months to 1 year
Contracts may or may not be renewed at the end of the term

2. Job Security:
Lower than full-time employment.
You generally can’t be terminated mid-contract (after probation), but non-renewal is common and legal.

3. Benefits:

• Vary by company and length of contract
• May receive fewer perks or bonuses
• Still eligible for social insurance if working over 20 hours/week and for more than 2 months

4. Career Path:

• Limited promotion or long-term career development
• Often hired for specific tasks or projects

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Final Thoughts

Being a contract employee isn’t necessarily a bad thing—it depends on the situation. But for me, it was a gamble that didn’t pay off. I went from launching a new business venture to doing odd tasks for other departments in my final month because things had shifted so drastically.

And because I was a contract worker, I had very little protection. I found myself scrambling to find a new job before my visa status became an issue—losing your job in Japan can be a race against time, even if you technically still have time left on your visa. Immigration can revoke your status if you’re unemployed for over 3 months.

Thankfully, I secured a new job before the deadline. But the experience left a lasting impression, and I made a conscious decision to prioritize full-time seishin positions from that point forward.

If you’re considering working in Japan, or switching job types, I hope my story helps shed some light on the real differences between full-time and contract employment here. Every path has pros and cons—but being informed before you make a decision can make all the difference.

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