Freelance Act takes effect — clients must state the terms of the deal and pay within 60 days
Source material is a Japanese government announcement (in Japanese); this page is a summary.
On 1 November 2024 Japan brought the Freelance Act into force, requiring clients to state the terms of the deal and to set a payment due date within 60 days of the date they receive the deliverables.
Key facts
| Official name | 特定受託事業者に係る取引の適正化等に関する法律 (Act on Ensuring Proper Transactions Involving Specified Entrusted Business Operators — the Freelance Act, Act No. 25 of 2023 (Reiwa 5)) |
|---|---|
| In force from | 1 November 2024 (Reiwa 6, 1 November) |
| Responsible bodies | Japan Fair Trade Commission and Small and Medium Enterprise Agency (proper transactions); Ministry of Health, Labour and Welfare (working environment) |
| Who counts as the contractor | Specified entrusted business operator = an individual who employs no staff, or a company with no officers other than a single representative and no employees (a freelancer) |
| Who counts as the client | Specified entrusting business operator = an individual who employs staff, or a company with 2 or more officers or with employees |
| Stating the terms (Article 3) | State the terms of the deal (names, content of the deliverables, payment amount, payment due date and so on) in writing or electronically as soon as the work is commissioned |
| Payment due date (Article 4) | Set the payment due date as early as possible and no later than 60 days after the deliverables are received, and pay by that date |
| Prohibited acts (Article 5, commissions of 1 month or more) | Refusing receipt, reducing payment, returning goods, setting unjustly low payment, forcing the freelancer to buy or use something, demanding unjust economic benefits, unjustly changing the content of the deliverables or demanding rework |
| Working environment duties | Display recruitment information accurately (Article 12), show consideration for childcare and caregiving (Article 13), put systems in place to deal with harassment (Article 14), give advance notice of and reasons for ending a contract early (Article 16) |
| If the rules are broken | After a request for reports and an on-site inspection: guidance and advice, recommendations, orders and public announcement. Breaking an order or refusing an inspection can bring a fine of up to 500,000 yen |
Last checked:
On 1 November 2024 Japan brought the Act on Ensuring Proper Transactions Involving Specified Entrusted Business Operators (the Freelance Act, Act No. 25 of 2023 (Reiwa 5)) into force. A client that commissions work from a freelancer (a specified entrusted business operator) who employs no staff must state the terms of the deal in writing or electronically as soon as the work is commissioned, and must set a payment due date that falls as early as possible and no later than 60 days after the deliverables are received, and must pay by that date. For commissions that run for a set period or longer, 7 prohibited acts apply, including refusing receipt, reducing payment and setting unjustly low payment. Clients also have duties on the working environment, such as displaying recruitment information accurately, showing consideration for childcare and caregiving, and putting systems in place to deal with harassment. The Japan Fair Trade Commission, the Small and Medium Enterprise Agency and the Ministry of Health, Labour and Welfare enforce the Act. Breaches can lead to guidance and advice, recommendations, orders and public announcement, and a fine of up to 500,000 yen.
Background — why this change
As freelancing spread as a way of working, problems such as unpaid fees and harassment came to light. The Act was created to give freelancers an environment in which they can work with confidence, focusing on their weak position in transactions, including the gap in bargaining power between an individual freelancer and an organisation acting as the client. It sets out the duties and prohibited acts for clients along two lines: ensuring transactions are conducted fairly, and improving the working environment.
Summaries below are factual notes based on government announcements and primary sources — not evaluations or opinions.
Summaries reflect national-level programs. Municipal (city/ward/town) programs may differ — confirm with the official desk before applying.
FAQ
Who does this Act apply to?
It applies to clients (specified entrusting business operators) that commission work from freelancers (specified entrusted business operators), such as individuals who employ no staff. It covers business-to-business transactions; transactions with consumers are excluded. The duty to state the terms of the deal also applies to transactions between freelancers.
By when does payment have to be made?
The client must set the payment due date as early as possible and no later than 60 days after the deliverables are received, and pay by that date (Article 4).
What happens if a client breaks the rules?
The Japan Fair Trade Commission, the Small and Medium Enterprise Agency and others can request reports and carry out on-site inspections, then issue guidance and advice, recommendations, orders and public announcement. Breaking an order or refusing an inspection can bring a fine of up to 500,000 yen. Check specific cases with the official contact points.