Common corporate investigation scenarios
Businesses — including foreign companies operating in Japan — use PI agencies for:
- Internal fraud or theft investigation
- Employee conduct verification (moonlighting, policy violations)
- Due diligence on a business partner or acquisition target
- Confirming an employee's claims (sick leave, expense verification)
- Trade secret leakage investigation
- Workplace harassment documentation
Legal framework
Corporate investigations must comply with Japan's labor laws, personal information protection laws, and detective agency regulations. Investigators cannot access private communications, plant listening devices, or take actions that constitute illegal surveillance or harassment of employees.
For matters that may involve criminal conduct (fraud, embezzlement), involving the police or a lawyer early is advisable alongside any PI work.
For foreign companies and managers
Foreign businesses operating in Japan face an additional layer of complexity: contracts and reports will be in Japanese, the labor law context is different from most Western countries, and cultural norms around confrontation and documentation differ.
When working through PI-Thenics, you can consult in English and we can look for agencies experienced with international clients.
Using investigation results
Before commissioning an investigation, consider how you intend to use the results. If you are building a case for dismissal or legal action, speak with a Japanese employment lawyer first — they can advise on what documentation will be legally useful and what processes must be followed.
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Frequently asked questions
Can I investigate an employee's behavior outside working hours?
Within limits. Surveillance of an employee's public behavior related to a legitimate business concern (e.g., confirming they are not working for a competitor) can be conducted. Surveillance purely for personal reasons or in a way that violates privacy rights is not permissible.
Can a PI find evidence of internal fraud?
PIs can observe and document behavior, and sometimes uncover inconsistencies. Complex financial fraud typically requires forensic accountants or law enforcement involvement rather than a PI alone.
We are a foreign company — can we still hire a Japanese PI agency?
Yes. Foreign companies have the same access to PI services as domestic businesses. Having documentation in English may require requesting a translated summary, which some agencies can provide.