Working in Japan? 10 Warning Signs You’re in a Black Company（and How to Protect Yourself）

Are you thinking of working in Japan or currently working in Japan? If so, this information is vital for you. Working in Japan is a great experience, however, it is easy to get taken advantage of if you don’t know the telltale signs of a Black Company.

Hello, I am Andrew from Globarx and I am here to help you better understand the traits and warning signs of a Black Company. I recently interviewed Globarx CEO, Kenta Morinaga, highlighting 10 ‘black company’ traits in Japan. Feel free to check out the full video here.

What is a Black Company

A black company is a business that exploits its workers through harassment, long working hours, low pay, and denying labor rights to their employees. While not always illegal, black companies take advantage of workers—especially young or foreign employees unfamiliar with their rights. Recognizing the red flags can help you avoid burnout and protect your career in Japan. In this article, we will review 10 black company traits so that you can be prepared to notice the warning signs when they come.

10. Unpaid Overtime

“They don’t pay overtime… even if you come early or leave late they won’t pay you overtime. You have to apply for OT pay and… nobody does it because they made it hard for people to apply (not literally but by atmosphere).”

— New graduate on r/japanlife

Unpaid overtime is one of the most damaging and common traits of a black company. Unlike occasional overtime that gets properly compensated, unpaid overtime means you’re expected to:

• Work extra hours without pay

• Arrive early, stay late, and never log those hours officially

• Accept it silently as a sign of dedication or “team spirit”

What makes this trait so toxic is the cultural manipulation that often comes with it. Many black companies create a workplace atmosphere where asking for overtime pay is seen as selfish or disloyal. In some cases, companies don’t even record those hours, while using shady accounting practices to hide violations of labor law. For foreign workers, especially those on a visa, this can be even worse. There's pressure to stay employed, avoid conflict, and "prove yourself," even if it means sacrificing your free time without compensation. This isn’t just unethical, it’s illegal. But without support or awareness of your rights, it can go unchallenged.

As Moriken stated in our video, if you are in a situation where you are not receiving your correct overtime pay, you should record the start and finish time of your work manually. Do not rely solely on the company’s documentation. You can create your own spreadsheets, save screenshots and emails, etc… Ensure that you have enough proof to prove that you have worked overtime and that you have earned overtime pay.

9. Excessive Overtime

“I had a student who worked at a famous electronics company. He basically lived at his company. He went home once or twice a week. He showered and slept at his office.”

— Reddit user on r/japanlife

Black companies often demand long hours far beyond what’s legally or ethically reasonable, with no additional compensation. This isn’t just staying late once in a while, it’s a culture where leaving on time is frowned upon, and your value is judged by how long you stay, not how effectively you work.

At black companies:

• Employees may work 10–14 hours a day.

• Overtime is often unpaid or disguised as part of “company loyalty.”

• Workers are expected to prioritize the job over health, family, and personal life.

This becomes a dangerous cycle and foreign workers, who are eager to keep their visa status or avoid trouble, feel trapped and unable to push back.

8. No Work-Life Balance

“I was technically allowed to take leave, but the unspoken rule was: if you’re not sick or dead, you work. I went a whole year without taking a single paid day off.”

— Anonymous expat worker in Japan

In black companies in Japan, work always comes first and everything else comes second. Employees are expected to sacrifice their personal time, family life, health, and even rest, all in the name of company loyalty.

These companies create a toxic culture where:

• Taking paid leave is frowned upon or guilt-tripped.

• Working late becomes a badge of honor, not a warning sign.

• Employees feel like they need permission just to take care of themselves.

• Even on days off, you're expected to be available or check in.

This isn’t just overworking an employee, it’s manipulation and emotional control. Workers are made to feel guilty for taking the rest they’ve legally earned. Foreign employees, unfamiliar with labor rights or worried about visa status, often find it hardest to push back.Without boundaries, the result is burnout, resentment, and a complete erosion of personal life. That’s why lack of work-life balance is one of the clearest signs of a black company.

7. High Turnover Rate

“Half the people who started with me were gone by the third month. One guy just didn’t show up after a weekend. No one even asked where he went.”

— Former English teacher in Tokyo

In black companies, new coworkers come and go consistently, some quit within weeks or even days of being hired. Many foreign workers are excited when they join, only to realize within months that their coworkers are quitting one by one, and soon, they're one of the only ones left from their orientation group. This high turnover isn’t just a sign of a “fast-paced environment”. It's often a symptom of something deeper, like:

• Toxic management or bullying from supervisors

• Unreasonable workloads or expectations

• Lack of training or career support

• Low morale and burnout among staff

• No mentorship or stability

• Replaceable-employee mindset

• A workplace focused on survival, not growth

This kind of culture creates a vicious cycle: as more people leave, the pressure increases on those who stay, leading to even more resignations. Companies with strong values invest in their people. Black companies treat them like disposable parts.

6. Verbal Abuse/Power Harrassment

“When I asked how long this is going to go on for, the manager got angry and I was told that it was until I learned my lesson and that I shouldn’t even be asking.”

— Reddit user, r/japanlife

One of the darkest and most dangerous traits of black companies is their normalization of power harassment and verbal abuse in the workplace. Verbal abuse in black companies is often brushed off as part of Japanese work culture, but don’t be fooled, this is workplace bullying. In Japanese labor law, power harassment is a violation, and every worker (including foreigners) has the right to a safe, respectful environment.Sadly, many foreign workers endure this treatment silently.

This can include:

• Being yelled at in front of others

• Public shaming or humiliation over small mistakes

• Passive-aggressive comments from managers

• Threats to cut pay, reduce shifts, or not renew contracts

• Intimidation disguised as “discipline” or “tough love”

These cases are very serious and workers should document each and every case in as much detail as possible as proof is needed when fighting a situation like this.

5. Unclear Job Descriptions

“I was hired to do translation work, but within two weeks I was answering phones, doing deliveries, and managing the office. When I asked why, they said, ‘Well, you’re part of the team now.’”

— Foreign worker in a Tokyo trading company

One deceptive tactic black companies use is providing unclear job descriptions to employees. This is done so that they can hire someone for one job, then quickly assign them to do something completely different, often without consent or proper training. This kind of bait-and-switch is intentional. It exploits workers, especially young workers and foreigners, who may not fully understand their contracts or feel comfortable speaking up. Since many work visas are tied to a specific job type, being forced to do unrelated work can even put your legal status at risk.

Black companies often:

• Post job ads with vague or appealing descriptions

• Say you’ll be doing “light work” or “assistant duties”

• Then once you start, push you into roles like sales, manual labor, or customer service

• Use phrases like “we all help each other” to justify changing your job scope at will

Black companies rely on ambiguity to stay in control. If you’re unsure what your real job is, or if your tasks keep changing without explanation, you may be in a workplace that’s intentionally keeping things unclear. You should request that your responsibilities are clearly documented.

4.Illegal Contracts/Forced Clauses

“I signed a contract with no mention of overtime, but I was expected to stay until 10 PM every night. When I brought it up, they said, ‘This is just how it works here. Everyone does it.’”

— Foreign worker in Osaka

Black companies often use contracts that violate Japanese labor laws and count on employees (especially foreigners) not knowing their rights. Usually in these companies gathering this information or joining a union is discouraged so that they can keep their workers in the dark about how much they are really exploiting them. 

Black companies often:

• Include illegal clauses, like “no overtime pay” or “no paid leave”

• Provide overly incentivized contracts in order to remove pay

• Use probation periods as excuses to avoid benefits or termination protections

• Make employees sign away rights under pressure or without translation

• Verbally promise one thing, but put something different in the written contract

This is not just shady, it’s often illegal. Under Japanese labor law all employees are entitled to paid leave, social insurance, and regulated overtime. Any clause that contradicts the Labor Standards Act is not enforceable, even if signed. Black companies count on intimidation, language barriers, and power imbalance to get away with it. If you're asked to sign a contract you don’t understand, are told “just sign now and we’ll explain later,” or pressured to agree to unpaid work, it’s a major warning sign.

3. No Social Insurance Provided

“I worked 5 days a week, 8 hours a day, for years. When I asked about health insurance, they said I didn’t qualify. I later found out they were supposed to enroll me the whole time.”

— Former ALT in Japan

One of the most common, and illegal, traits of a black company is failing to enroll employees in Japan’s mandatory social insurance system (shakai hoken / 社会保険).Black Companies often:

• Avoid enrolling staff to save on employer-side contributions

• Force workers to enroll in the National Health Insurance (kokumin kenko hoken) instead, even when it’s not appropriate

• Lie about eligibility, even if you work full-time

• Withhold insurance entirely, even when working over 30 hours per week

Black companies often pressure foreign workers to “just pay the cheaper Kokumin plan,” but this is a trap so they save money while you lose legal protection. Companies are not allowed to deny eligible worker request to enroll into the social insurance system (shakai hoken / 社会保険).

2. Promised Benefits Are Not Received

“My recruiter said I’d get a 50,000 yen relocation bonus, and the manager confirmed it during the Zoom call. Three months later, they said, ‘Oh, that was just a sample case—not guaranteed.’ I never saw a yen.”

— Foreign worker in Nagoya

A common move by black companies is making big promises during the hiring process, but never fulfill the promised benefits. Once you're hired, those promises suddenly “don’t apply anymore,” you're told you “misunderstood.”, or there is an intentionally convoluted process that makes it difficult to receive the benefit.Black companies often:

• Promise benefits like housing assistance, bonuses, or transportation reimbursement but do not provide them or make them extremely difficult to receive.

• Verbally state that you will receive a benefit, but do not provide it in a contract or document

• Tellls employees: “Don’t worry, it’ll be added after probation” or “We don’t put that in writing, but it’s company policy”

• After a few months, those benefits are quietly forgotten, denied, or blamed on a ‘miscommunication’

Black companies know verbal promises are not legally binding. Black companies use this to their advantage, they know foreign workers may be too polite or unsure how to push back, especially across a language barrier. Once you’ve started working, it’s harder to walk away, so they assume you’ll just accept it. If you’re promised something make sure it’s clearly stated in a contract. Otherwise, you may be dealing with a black company trying to trap you with empty words.

1. "You Should Be Grateful" Culture

“My boss once told me, ‘You foreigners are lucky to even be allowed to work here.’ That was after I asked a question about my contract.”

— Anonymous ALT (Assistant Language Teacher) in Japan

One of the most manipulative traits of black companies is their use of emotional pressure to silence complaints or concerns. This often takes the form of the phrase: “You should be grateful”. This is an extremely toxic culture used to stop workers from advocating for themselves.

This culture is used to:

• Dismiss legitimate concerns

• Shame foreign workers for speaking up about labor violations

• Create a power dynamic where the company is doing you a favor, not fulfilling a mutual agreement

• Frame poor treatment as “normal” and gaslight you into accepting it

For foreign workers, especially those new to Japan, it can be emotionally damaging, but here’s the truth, respect and protection are not rewards for working. They’re legal standards.

Conclusion

Working in Japan can be an incredible and life-changing experience, but only if you find the right environment. Now that you know some of the warning signs of a black company, do your best to avoid them. If you are dealing with a black company, remember, document everything as to fight against a black company for your rights, you will need valid proof for each claim you have. 

At Globarx, we’re committed to supporting foreign workers in Japan, not just by helping you find a job, but by guiding you toward safe, respectful, and sustainable workplaces. If you're currently facing any of the traits listed above, or if you're still job hunting and want to avoid falling into a black company trap, reach out to us. Ask questions, get advice, and know your rights. Because your future in Japan shouldn't be about survival. It should be about growth, purpose, and a life you’re proud of.

Your Next Step  in Japan with Globarx

I hope this post has given you a little more insight on what you may be able to expect if you work and live in a rural area or a big city. Japan truly has diverse faces depending on the region. The optimal place will change depending on what kind of lifestyle you desire.

If you are interested in working in Japan, Globarx fully supports those who aim to find employment.

Recruitment Services: We introduce you to Japanese companies that match your skills and experience.

Lifestyle Support: We provide assistance, from visa applications, documentation, and advising in order to help you settle into life in Japan.

Globarx will make your dream of "working in Japan" and "living in Japan" come true.

Please feel free to contact us!

Email: andrew@globarx.co.jp（Andrew Smith）

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■ About the Author

Andrew Smith

Originally from Louisiana, USA, Smith is an English educator and content creator based in Ehime, Japan. With a background in media production and experience as an NBA digital reporter, he moved to Japan in 2020 driven by his passion for Japanese culture. After four years teaching English across all age groups, he joined Globarx in 2025, where he now leads business English initiatives（Globarx English） and social media outreach for North America.