Japanese Business Glossary

退職金制度 (taishokukin seido) refers to the retirement allowance system or retirement benefit system in Japan. This system provides employees with a lump-sum payment or pension upon their retirement from a company. The retirement allowance is a form of severance pay intended to support employees financially as they transition out of the workforce.

Employees typically become eligible for retirement allowances after a certain period of continuous service with the company. The amount of the retirement allowance often increases with the length of service. The retirement allowance can be calculated based on various factors such as the employee’s final salary, years of service, and the company's specific retirement policy. Some companies may use a point-based system to determine the payment amount.

The retirement allowance can be provided as a lump-sum payment, an annuity (pension), or a combination of both. The choice of payment type may depend on the company’s policy and the employee's preference. Retirement allowances are subject to favorable tax treatment in Japan, with certain portions of the payment being tax-exempt, depending on the employee’s years of service and the total amount received.

Each company can establish its own retirement allowance system, and the specifics can vary widely. It is essential for employees to understand their company’s policy to know what they are entitled to upon retirement. Understanding the taishokukin seido is crucial for both employers and employees in Japan, as it affects financial planning for retirement and the overall employment package.

血縁 (ketsuen) is a Japanese term that translates to "blood relation" or "blood ties" in English. It refers to the relationship between individuals who are related by blood, such as family members like parents, siblings, children, and extended relatives.

This concept is often important in Japanese culture, as family lineage and blood relationships can play a significant role in various social, legal, and business contexts.

委任契約 (inin keiyaku) is a term in Japanese law that translates to "mandate contract" or "agency agreement" in English. This type of contract involves one party (the principal) appointing another party (the agent) to perform a certain task or represent them in some capacity. The agent acts on behalf of the principal, making decisions and taking actions as authorized by the contract. The relationship is based on trust, and the agent is expected to act in the best interest of the principal. Unlike a sales contract, an inin keiyaku does not involve the transfer of ownership of goods or property. It is about the performance of services or duties. The principal typically has the right to revoke the agent's authority at any time unless the contract specifies otherwise. Incorporating a company in Japan often involves various types of contracts, including inin keiyaku, especially when appointing representatives or agents to handle legal and administrative tasks.

不可分 (fukabun) translates to "indivisible" or "inseparable" in English. It refers to something that cannot be divided or separated into parts. This term is often used in various contexts, including legal, philosophical, and everyday language, to describe entities or concepts that are inherently unified and cannot be split into distinct components.

In a business or legal context, fukabun might be used to describe certain assets, rights, or obligations that must be treated as a single, unified whole and cannot be broken down or separated without losing their essence or functionality.

常務取締役 (joumu torishimariyaku) translates to "managing director" or "executive director" in English. This is a high-ranking position within a company's board of directors.

A joumu torishimariyaku typically holds significant responsibilities, such as overseeing day-to-day operations, implementing strategic decisions, and managing specific departments or projects. This role often serves as a bridge between the board of directors and the company’s operational staff, ensuring that the board's directives are executed efficiently.

In Japanese companies, titles and hierarchy are very important. The joumu torishimariyaku is usually one of the senior executives and plays a crucial role in the company's management and decision-making processes.

生前 (seizen) is a Japanese term that translates to "during one's lifetime" or "while alive." It refers to the period when a person is still living, often used in contexts related to actions, arrangements, or statements made by someone before their death. For example, 生前贈与 (せいぜんぞうよ, seizen zoyo) means "lifetime gift," referring to the transfer of assets or property given by a person to others while they are still alive, as opposed to inheritance after death.