【Under contract with a "company as a legal entity"】
It seems that young people are very interested in the type of company they want to work for in the future and how they can achieve self-fulfillment there. Some of them may choose to become entrepreneurs
instead of employees with many restrictions. No matter which path you choose, it is important to learn about the company and what being employed entails.

【Employees have an employment contract with their employer】
Many people finally landed a job at their preferred company in April after a long and tough job search. What does it mean to be employed?
It means you enter into a contract with a company. As an employee, you have to sign an employment contract. This applies not only to regular employees, but also to part-time and temporary workers. This is a contract between a company and an employee that stipulates, "I will work a specified number of hours in accordance with the company’s rules and regulations. The company will compensate me for this work." As an employee, you need to sign a n employment contract when you start working for a company. Even temporary or part-time jobs require a contract specifying your hourly pay. Regarding this contract, who exactly are you signing it with? The president? The general manager? Actually, you sign a contract with the company as a "legal entity".

【When registered, the company becomes a legal "person"】
As a "legal entity", a company can own land and property. By registering its incorporation with the Legal Affairs Bureau, a company is recognized as a legal entity by society. Therefore, the company can own land and property. The company’s land and property are not the president’s personal assets. If the president passes away, the president’s family will not inherit the company’s assets because they are owned by the company, not the president.
A sole proprietor is a person who owns and
runs an unincorporated business. As a sole proprietor, they can keep all the profits of the business but are also responsible for all its debts.
To become an employee, you sign a contract to work for a c ompany under certain conditions, aiming to contribute to the company’s profits. If you violate your contract, you may face disciplinary actions such as "disciplinary dismissal" or "instructed resignation". You will not receive any severance pay after a disciplinary dismissal.

【Company profits create a virtuous cycle for the economy】
The main goal of a business is to generate profits.
A c ompany i s a t eam o f p eople who work together to achieve goals that are beyond the reach of individuals. When the company makes stable profits, it invests more money to expand its business. This creates more employment a nd lowers unemployment. Then, workers earn more and spend more. Furthermore, when more people buy new products, more money circulates in the economy and the government collects more taxes. Business activity drives this virtuous cycle of the economy.
When business slows down, the cycle that supports the economy stops. After the "bubble economy" collapsed, the Japanese economy fell into a vicious cycle. Shunto, the annual spring wage negotiations, is in its final stage. The business and labor sectors hope for a balanced increase in wages and prices to end this vicious cycle.

【How is your salary determined?】
The terms wage and salary are used on a daily basis, but they have different meanings. A wage is the amount of money that you earn per hour, day, or week. A salary is the fixed amount of money that your employer pays you regularly for your work. It may also include additional benefits, such as executive allowances, overtime pay, and bonuses. Base salary is the amount of money an employee earns before any extras or deductions. Both employees and employers need to know this figure because it affects the insurance premiums for the Employees’ Health Insurance and the Employees’ Pension Insurance.
Does a company’s profitability impact its salary policy? Various factors affect your salary, such as your age, length of service, role, and performance. There are two types of salary increases: a periodic raise and a base salary adjustment. A periodic raise is an increase in your base salary based on your age and length of service. You also get a raise when you are promoted to a higher position. A base salary adjustment is an increase in the base salary for all employees to improve the salary system.

【Changes in the work environment】
It is natural to receive a salary as compensation for your work. In addition to the base salary, Japanese companies also offer benefits such as “family allowance” and “housing allowance”, which are some of their features. This reflects the Japanese mindset that a company is like a family. However, the COVID-19 pandemic has caused significant changes in the company systems and work styles.
Many companies are now allowing employees to have a side job, work fewer hours, and take longer childcare leave. Many employees are also working remotely. The work environment is undergoing a transformation. W hen you plan your future career, try to find the best company for you without being constrained by conventional fixed ideas.