What the Freelance Act requires of businesses that outsource work: stating terms, the 60-day rule and prohibited actsRules for asking someone who works alone to do a job
The Freelance Act (Act on Ensuring Proper Transactions Involving Freelancers and Business Operators) requires businesses that outsource work to freelancers to state the transaction terms, set a payment due date for remuneration, comply with prohibited-act rules, and maintain the working environment. The Japan Fair Trade Commission's special website sets out the contents.
Key points
- State the transaction terms in writing or by electronic means immediately after commissioning the work. Verbal-only is not allowed.
- Set the remuneration payment due date as short as possible within 60 days of the date the goods or services are received. For subcontracting, there is an exception allowing payment within 30 days of the payment due date for the original commissioned work.
- For commissions of one month or more, seven acts are prohibited: refusing to accept deliverables, reducing remuneration, returning goods, unreasonably low pricing, forced purchase or use, demanding improper economic benefits, and improperly changing the content or redoing the work.
- For commissions of six months or more, there is a duty to consider balance with childcare, family care and similar needs; early termination and similar actions require at least 30 days' advance notice and disclosure of the reason on request.
- Businesses must also set up a harassment-prevention system (clear policy and awareness, a consultation system, follow-up response) and must not treat freelancers unfavorably (retaliation) for reporting to government agencies.
What to do in practice
- Standardize the ordering form so the transaction terms are always recorded in writing or by email, etc.
- Check that the remuneration due date is within 60 days of the date of receipt.
There are rules that the side asking for work must follow, so that people who work on their own (freelancers) do not end up in trouble after being asked to do a job. It is important not to leave the job details or the money unclear.
- ○Applies: Write down the job and the money and hand it over
- ○Applies: Pay within 60 days of receiving the work
- ×Does not apply: Make promises only by talking
- ×Does not apply: Cut the money later for no reason
Points
- Say clearly, on paper or by email, what the job is, how much it pays and when it will be paid.
- Pay the money within 60 days after receiving the goods.
- You must not cut the price on your own later, refuse to accept the work, or make them redo it.
What the words mean
- Freelancer
- A person who is not employed by a company and takes on jobs alone.
- Unreasonably low pricing (kaitataki)
- Forcing a price far lower than usual on someone.
- Japan Fair Trade Commission: Japan Fair Trade Commission: 2025 Freelance Act special website
This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.