Letter of Personal Guarantee (身元保証書)

Signed by a guarantor (parent, relative) of a new hire, committing to compensate the employer for damages from the employee's misconduct. Subject to statutory limits.

By Emmanuel Gendre

Founder, SaiyouTeam · 12 years recruiting in Japan

Last reviewed: May 2026 · Aligned with the Onboarding pledge workflow in Japanese HR practice

Official sources

This template is built on the following primary Japanese government sources. Open each link to verify the underlying rule against the issuing authority.

e-Gov 法令検索 - Personal Guarantee Act (身元保証ニ関スル法律) The 1933 statute governing personal-guarantee letters in employment. Sets the 5-year maximum term (3 years if unspecified) and the employer's notice obligations on increased risk.
e-Gov 法令検索 - Civil Code (民法) The general statute governing private contracts in Japan, including the principles applied to non-employment work agreements and supplementary pledges.

Reference

What the Letter of Personal Guarantee (身元保証書) is

A Letter of Personal Guarantee (身元保証書) is a document signed by a guarantor of a new employee, typically a parent, relative, or trusted third party, committing to compensate the employer for damages caused by the employee's wilful misconduct or gross negligence (theft, embezzlement, fraud). It is common practice in traditional Japanese SMBs, especially for roles handling cash, customer accounts, sensitive data, or expensive equipment. The instrument is governed by the 身元保証ニ関スル法律 (Personal Guarantee Act, 1933), which sets statutory term limits and notice obligations. Since the 2020 Civil Code amendment, the maximum guarantee amount must be specified in writing for the guarantee to be valid.

When to use

When to use this document

New hires in roles handling significant amounts of cash (banking, retail cashier, accounting)
New hires with access to customer financial accounts (financial advisors, payroll officers)
New hires handling expensive equipment or proprietary samples (laboratory, manufacturing)
New hires in regulated industries with statutory employer-liability exposure
Standard practice in many traditional Japanese SMBs across all white-collar roles

Mandatory items

What to include

Identity of guarantor (full legal name, address, relationship to the employee)
Identity of the employee and the position being entered
Scope of guaranteed liability (typically wilful misconduct and gross negligence; ordinary negligence usually excluded)
Maximum guarantee amount (極度額), mandatory under the 2020 Civil Code amendment for the guarantee to be valid
Term of the guarantee (maximum 5 years; defaults to 3 years if unspecified)
Conditions for renewal at term end
Employer's notice obligations to the guarantor on increased risk (job change, role with greater financial exposure, change in employee's circumstances)
Guarantor's right to terminate on receipt of such notice
Guarantor signature, date, 印鑑, and ID-verification stamp

Legal basis

Legal background and constraints

Governed by the 身元保証ニ関スル法律 (Personal Guarantee Act, 1933). Maximum term is 5 years; if the term is unspecified, the default is 3 years. The 2020 Civil Code amendment introduced a critical change: any 根保証 (continuing guarantee) requires a written maximum liability cap (極度額). Without the written cap, the guarantee is invalid. The Personal Guarantee Act also imposes employer notice obligations: if the employee's circumstances change in a way that materially increases risk to the guarantor (job change, transfer to a high-risk role, employee's known dishonesty), the employer must notify the guarantor, who can then elect to terminate the guarantee.

Frequently asked

Common questions about the Letter of Personal Guarantee

Is 身元保証書 mandatory in Japan?

Not legally required. It is common practice in traditional Japanese SMBs and in roles handling cash or sensitive assets, but it is not statutorily required. Many modern companies, especially in IT and services, do not collect personal guarantees. The decision is a HR-policy choice, balancing risk-protection against the friction of asking new hires for guarantor information.

What's the maximum guarantee term?

Five years is the statutory maximum; if the term is unspecified, the law defaults to 3 years. The 5-year cap can be renewed by re-signing at term end, but each individual guarantee instrument is capped at 5 years. Indefinite guarantees are not enforceable under the Personal Guarantee Act.

What is the maximum liability amount (極度額)?

The amount is negotiated between the employer and the guarantor, but it must be specified in writing. There is no statutory minimum or maximum. Common practice ranges from 1 million to 10 million yen depending on the role's risk profile. Setting the amount too high makes guarantors reluctant to sign; setting it too low limits practical recovery. Mid-single-digit millions of yen is a typical SMB range.

Can a corporate entity be the guarantor?

Technically yes, but in practice 身元保証人 is almost always an individual (typically a family member of the employee). Corporate guarantees in employment are unusual; the law was originally designed around individual guarantors and the Personal Guarantee Act's notice and termination provisions assume an individual guarantor. For corporate-style protection, employer-side professional bonding insurance is the more common route.

What happens if the guarantor dies before the term ends?

Under the Personal Guarantee Act and the 2020 Civil Code amendment, the guarantee terminates on the guarantor's death; it does not pass to the guarantor's heirs. The employer must obtain a new guarantor from the employee if continued guarantee coverage is required. This is one reason employers prefer to set explicit term limits and request renewals over time.

About the author

Emmanuel Gendre

Founder, SaiyouTeam · TechieCV K.K.

Emmanuel advises small and mid-sized companies (SMBs) on HR and recruiting in Japan. He brings 12 years recruiting in Japan as a Recruitment Consultant placing IT professionals, plus prior experience hiring engineers across EMEA as a Google recruiter. Onboarding pledge-related paperwork is something he handles regularly with his SMB clients in Japan, so he built this template as part of that advisory work and uses it himself when those conversations come up.

For case-specific contract matters, Emmanuel works with licensed Japanese professionals (社会保険労務士 and 弁護士). This template is a planning tool used in those conversations, not a substitute for professional advice on an individual case.

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Important. This template is provided for general planning purposes only and is not a substitute for professional advice. Japanese contract law is complex and case-specific. Before issuing this document in any non-routine situation, consult a qualified labor lawyer (弁護士) or Certified Social Insurance and Labor Consultant (社会保険労務士).

Letter of Personal Guarantee (身元保証書)

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