Precautions for managing employee data?

2022
APPI amendment year
5 years
Retention limit (if no longer needed)
Article 17
Security measures duty
Article 16
Purpose specification
The Short Answer

In Japan, employers must obtain employee consent, implement appropriate security measures, limit data use to necessary purposes, and appoint a responsible person for personal information handling under the Act on the Protection of Personal Information (APPI).

What the Law Says

Japan’s Act on the Protection of Personal Information (APPI) sets strict rules for how employers handle employee personal data. It applies to all businesses that collect, use, or store personal information of individuals in Japan—including employees.

Employers are classified as 'business operators handling personal information' and must comply with core obligations: specifying the purpose of use before or at the time of collection (Article 16), obtaining consent before using personal information for purposes beyond the original scope (Article 23), and implementing necessary security measures to prevent leaks, loss, or damage (Article 17).

Personal information must not be retained longer than necessary for the stated purpose. If no specific retention period is legally required, data should generally be deleted within 5 years after it becomes unnecessary (Guidelines on APPI Enforcement, Ministry of Economy, Trade and Industry).

Employers must also appoint a responsible person or department to oversee compliance, respond to employee requests (e.g., disclosure or correction), and maintain records of data handling activities.

Statutory Text

The business operator handling personal information shall specify the purpose of use of personal information to the extent possible and shall not use personal information beyond the scope necessary to achieve the purpose of use.

Act on the Protection of Personal Information, s. 16 — Purpose of Use
Statutory Text

The business operator handling personal information shall take necessary and proper measures for the safe management of personal information.

Act on the Protection of Personal Information, s. 17 — Security Control Measures
Statutory Text

The business operator handling personal information shall not provide personal information to a third party without obtaining the prior consent of the individual.

Act on the Protection of Personal Information, s. 23 — Provision to Third Parties

What to Do

1

Specify and document the purpose of collecting each category of employee data (e.g., payroll, attendance, health records).

2

Obtain written consent before using employee data for new purposes (e.g., internal training analytics or sharing with overseas affiliates).

3

Implement technical (e.g., encryption, access logs), organizational (e.g., confidentiality agreements), and physical (e.g., locked filing cabinets) security measures per Article 17.

4

Appoint an internal privacy officer and train HR/staff on APPI requirements.

5

Delete or anonymize employee data once it is no longer needed—typically within 5 years unless law requires longer retention.

Sources

Same Question, Other Jurisdictions

Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.