JapanCompany won't pay retirement allowance. Do I have a right?
Yes, you generally have a right to retirement allowance if your company has a retirement allowance system and you meet its conditions — especially if it’s stipulated in your employment contract or work rules.
What the Law Says
Japanese labor law does not require employers to provide retirement allowances — but if a company establishes such a system, it becomes legally binding under certain conditions.
The Labor Standards Act (LSA) does not mandate retirement allowances. However, if a company introduces a retirement allowance system — whether in employment contracts, work rules (shūgyō kisoku), or collective agreements — it creates a legal obligation to pay eligible employees upon retirement.
Under Article 17 of the Labor Standards Act, work rules that affect working conditions (including retirement allowances) must be filed with the Labor Standards Inspection Office if they apply to 10 or more workers. Once filed and communicated to employees, these rules become part of the employment contract.
Article 22 of the Labor Standards Act states: 'An employer shall pay wages, including retirement allowances stipulated in the labor contract or work rules, in full and directly to the worker.' This means if the allowance is promised, it must be paid in full — no deductions or delays are permitted unless agreed in writing and lawful.
The statute of limitations for claiming unpaid retirement allowance is 2 years from the date payment was due, per Article 115 of the Labor Standards Act.
Statutory TextAn employer shall pay wages, including retirement allowances stipulated in the labor contract or work rules, in full and directly to the worker.
— Labor Standards Act, s. 22 — Payment of Wages
Statutory TextIf the number of workers regularly employed by an employer is 10 or more, the employer shall draw up written rules... concerning matters such as... retirement allowances...
— Labor Standards Act, s. 89 — Work Rules
Statutory TextThe right to claim wages... shall be extinguished after the lapse of two years.
— Labor Standards Act, s. 115 — Extinction of Right to Claim Wages
What to Do
Check your employment contract and company work rules to confirm whether a retirement allowance system exists and what eligibility conditions apply (e.g., length of service, age, reason for leaving).
Request written confirmation from HR about the allowance calculation and payment schedule — keep all correspondence.
If unpaid, file a complaint with the local Labor Standards Inspection Office (no fee, confidential).
Within 2 years of the due date, consider filing a labor adjudication application at the Labor Tribunal or a civil lawsuit if negotiation fails.
Sources
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South KoreaNot 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.