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2026-01-01Work

💼 Freelance Protection Law + Subcontracting Law Expanded

Written contracts & 60-day payment now mandatory — foreign freelancers protected too

2 Laws
Applied
Written
Contract req.
60 days
Payment limit
Protected
Foreigners too

What changed?

Building on the Freelance Protection Act (November 2024), the "SME Subcontracting Fairness Act" took effect in January 2026. Clients must now provide written terms (email acceptable) for contracted work and pay within 60 days of service completion. Foreign freelancers working in Japan are equally protected under both laws.

👥 Who's most affected

  • Foreign freelancers on contract (translation, IT, design, etc.)
  • Individual business operators with Engineer/Specialist/Humanities visas
  • Working Holiday visa holders accepting contract work
  • Foreigners doing freelance work as a side job

📋 Key client obligations

📝Provide written terms (including digital) — work scope, payment amount, due date
Pay within 60 days of service completion
Prohibited: refusing delivery, reducing payment, unreasonable returns
🛡️Establish anti-harassment measures (including childcare/nursing care considerations)

⚠️ What if the client violates?

The Fair Trade Commission investigates and issues recommendations for Freelance Act violations, with fines up to ¥500,000 for non-compliance. The SME Subcontracting Act is overseen by the Small and Medium Enterprise Agency with administrative measures similar to the Subcontract Act. Working "without a contract" makes the client the violator.

💡 Key points to know

1Making someone work without a written contract is the client's legal violation
2Payment deadline is within 60 days (same level as Subcontract Act)
3Both the Freelance Act and SME Subcontracting Act apply together
4Contact the Fair Trade Commission or Freelance Trouble Hotline 110 for help

🔗 Related Issues

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