"Labor insurance" is a general term referring to both workers' compensation insurance and unemployment insurance. Though benefits are paid separately by the two insurance systems, premiums are paid together, as a general rule, under the category of "labor insurance."

With the exception of certain types of businesses in the field of agriculture, forestry, and fisheries, all employers must join the labor insurance system and pay premiums to it, even if they only employ a single person.

Applying for Labor Insurance and Payment of Premiums

To apply for labor insurance, the employer first submits the required documents to the Labor Standards Inspection Office or public employment office with jurisdiction over the locale in which the business operates. The employer is then required to report and remit the estimated insurance premium for the current fiscal year (the estimated premium is calculated by multiplying the projected total salaryof the employees covered from the date insurance coverage commences to the last day of the fiscal year by the insurance premium rate).