There are two types of labor insurance: workers accident compensation insurance (rosai hoken) and employment insurance (koyo hoken).
If an insured person becomes ill, suffers injury or dies while he/she is at work or commuting, the benefits will be paid to the insured person or his/her family. Any business owners who employ one or more worker(s) are required to participate in this insurance.
Employment insurance helps recently unemployed people find new jobs and also provides them with benefits to help cover their living expenses until they are employed again. This is called Unemployment Benefits (shitsugyo kyufu). People applying for benefits must have been enrolled in the employment insurance plan for 12 months or longer (11 working days or more per month) in the preceding two years, are willing to be employed again, and are available to work. The application is handled at the public employment security offices (Hello Work).
However, persons becoming unemployed due to bankruptcy, dismissal, or for another reason by their employer, can receive unemployment benefits if they were enrolled in the employment insurance plan for 6 months or longer (11 working days or more per month) in the preceding year.