Any agreement (with the exception of the agreement with Italy) provides an exception to the territorial rule, which aims to minimize disruptions in the career of workers whose employers temporarily send abroad. Under this exception for “self-employed workers,” a person temporarily transferred to work for the same employer in another country is covered only by the country from which he or she was seconded. A U.S. citizen or resident, for example, who is temporarily transferred by a U.S. employer to work in a contract country, remains covered by the U.S. program and is exempt from host country coverage. The worker and employer only pay contributions to the U.S. program. Under the agreement, Japan will exclude employees seconded from Chinese companies, employees aboard seagoing vessels and aircraft, members of diplomatic and consular representations, as well as officials of Japan`s two main municipal pensions, national pension insurance and workers` pension insurance. As a result, China will exclude its Japanese counterparts from China`s basic old age insurance. The detached house rule may apply if the U.S. employer transfers a worker to work at a foreign branch or in one of its foreign subsidiaries. However, in order for U.S.
coverage to continue when a transferred employee works for a foreign subsidiary, the U.S. employer must have entered into a Section 3121 (l) agreement with the U.S. Treasury Department with respect to the foreign subsidiary. In general, workers` compensation insurance and work insurance are collectively referred to as “work insurance,” while workers` health, care and pensions are collectively referred to as “social security.” The agreement with Italy is a departure from other US agreements because it does not regulate the people cashed in. As in other agreements, the basic criterion of coverage is the territorial rule. However, the coverage of foreign workers is mainly based on the nationality of the worker. If an employed or self-employed U.S. citizen in Italy would be covered by U.S. Social Security without the agreement, he will remain covered by the U.S. program and exempt from Italian coverage and contributions.
This section deals with Japan`s labour laws and regulations. Topics include hiring, employment contracts, wages, working time, work rules, workplace safety, hygiene requirements, redundancy and redundancy procedures, and Japan`s social security, health and retirement systems.