In recent years we have witnessed an increased appetite amongst international candidates for roles in Tokyo.  A combination of a strong recovery in the Japanese economy and gradual legal reform, which has opened more doors for foreign law firms, has created significant numbers of new opportunities.  Accordingly, the market for foreign lawyers in Tokyo is currently very healthy.

In general terms, candidates for positions in Tokyo have a very significant advantage if they have good Japanese language skills.  It is not usually necessary for a foreign lawyer to be able to draft in Japanese, but the ability to hold a fluent, professional conversation is a very significant attribute.  Of course there are exceptions, most notably for certain senior roles and for positions in practice areas in which the demand for quality candidates is particularly strong, which at different times may include capital markets, projects, structured finance, banking and M&A.  For such roles, even quite junior candidates with no Japanese language skills will often be considered.

Most of the large, international US firms along with the UK’s Magic Circle and several other leading City firms now have a presence in Tokyo, although it is fair to say that most of the international players in the market have only a small number of lawyers on the ground.  As a result, it is not uncommon for relatively junior lawyers to receive more responsibility, increased partner time and greater exposure to deals than they might in other jurisdictions in which their firm is able to boast greater resources.

Most US firms in Tokyo have a strong focus on US Securities work, which means, so far as recruitment is concerned, they will usually look exclusively at US qualified lawyers, although there are of course exceptions.  One consequence of this is that US firms ordinarily pay more than other international, typically UK, firms, often paying at or close to New York rates.  At other international firms salaries are most commonly similar to those paid in Hong Kong.  As to the kind of work one can expect, a significant proportion of the instructions received by foreign firms will have an international element and will regularly involve foreign clients.

When compared with the situation in the UK, income tax is not particularly painful for an average foreign lawyer based in Japan.  Nevertheless, it is still likely to be significantly more onerous than for an individual on an equivalent salary in Hong Kong.  Blended tax rates mean that an average mid-ranking lawyer can ordinarily expect to end up paying around 20% in income tax, although this rate will rise for high earners.  As a consequence, on occasion, to limit tax liability, lawyers will be employed through a firm’s Hong Kong office and then seconded to Tokyo.

In relation to other standard employment terms, most employed lawyers within international practices can expect to receive approximately 25 days annual leave.  In addition to this, Japan tends to have quite numerous public holidays, although the precise number changes depending on the year.  Given the relatively high cost of housing in Tokyo, a significant number of the international firms will offer their professional staff a housing allowance.  So far as working hours are concerned, one will usually find they are very similar to those worked in equivalent firms in Hong Kong or London.

Although most foreign lawyers moving to work in Japan will tend to be employed by foreign law firms or foreign banks, other opportunities certainly do exist.  The bigger Japanese law firms employ overseas lawyers as Foreign Counsel, while openings also arise within Japanese banks and corporations, although, for obvious reasons, local language skills tend to be particularly important for such roles.

For a majority of foreign lawyers moving to Japan, there is a need to adjust to a strong culture which is in many respects quite different from that to be found in most Western jurisdictions.  Client meetings will often be very formal and hierarchical.  Business etiquette has to be learnt and understood.  For those individuals who manage to find employment in Tokyo notwithstanding a lack of Japanese language skills, there will also be somewhat of an urgent need to learn at least some basic Japanese, particularly if they plan to venture outside of the capital city.

There are now, more than ever before, excellent opportunities for foreign lawyers in Japan.  The rewards, both financial and personal, can be extremely attractive and the quality of work extremely high.  However, it is not a move without its challenges and in order to succeed one must be ready to learn and to adapt.