A law change that relaxes restrictions on foreign lawyers is being welcomed in Japan, as the market gradually embraces international talent. The revised Gaiben law, which expands activities allowed and decreases the period of overseas work experience required for foreign lawyers, is expected to be confirmed during this Diet session.
The bill was originally advised by Japan’s Ministry of Justice and the Japan Federation of Bar Associations back in 2016, and although formally adopted and expected during Japan’s 2018 autumn Diet session, it failed to eventuate.
The arrival of the law coincides with a government-led push to boost Japan’s international arbitration capabilities. Last year in Osaka, the Japan International Dispute Resolution Center (JIDRC) was launched, while a second JIDRC centre is expected in Tokyo next year.
Lawyer Rika Beppu, who was involved in the amendments and chairs the European Business Council Legal Services Committee, says that the changes are “wholeheartedly welcome.”
“Once the changes are implemented into law, international lawyers who have started their careers in Japan and are currently in Japan pursuing their legal careers will no longer need to disrupt their careers by going overseas for two years to satisfy the current requirement,” Beppu says, noting that overseas work experience will be reduced to one year.
“This will be beneficial to Japan-based clients as well as law firms, where an international lawyer’s career can be more smoothly pursued due to the reduction of the two-year overseas experience rule to one year,” she says. However, she says that the committee is advocating for the complete abolition of the work experience rule for foreign lawyers in Japan.
Aaron Patience, who heads the Simmons & Simmons Tokyo office, believes the law change strikes a good balance, noting that the general market reaction seems to be that it’s “a step in the right direction.”
The loosening of foreign lawyer restrictions also indicates a demand for foreign talent. “I think there will continue to be a need for the skill-sets of international lawyers in particular sectors; like infrastructure projects and project finance,” says Patience. “Japanese clients tend to appreciate service providers that can bridge cultural gaps, such as by delivering messages in a particular way, whether it be in Japanese or by using English in a way that resonates with them.”
While Japan may be opening up to foreign lawyers, the domestic legal market is also looking outward. “There’s also more of an interest in Japanese lawyers doing international work, and there’s a push from the Japanese business community to get involved in cross border transactions between Japan and the rest of the world,” Patience says. “I think some of the roles that were potentially in the past filled by Commonwealth or U.S. lawyers are now increasingly being done by Japanese lawyers who are interested in that space. So that could influence the opportunities for international lawyers.”
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