Today, many companies accept foreign technical intern trainees under a system designed so they can learn Japanese skills, take them back to their home countries, and contribute to economic development there. For accepting organizations, technical intern trainees have become indispensable, valued as diligent workers who generally stay for three years or more. Under the current Technical Intern Training Program, if certain conditions are met, Technical Intern Training (iii) is available, allowing trainees to stay in Japan for up to five years. In addition, since April 2019 a new status of residence, Specified Skilled Worker, has been established, and foreign nationals who have completed Technical Intern Training (ii) (three years of technical intern training) can apply for Specified Skilled Worker status on that basis alone. As a result, the main options after completing Technical Intern Training (ii) are now Technical Intern Training (iii) or Specified Skilled Worker. This article introduces the pros and cons of Technical Intern Training (iii) and Specified Skilled Worker for accepting organizations deciding what comes next for foreign nationals completing Technical Intern Training (ii).

What Is Technical Intern Training (iii)?

Technical Intern Training (iii) is the next stage after Technical Intern Training (ii), newly established under the current Technical Intern Training Program (enforced in November 2017). The period is two years. To apply for (iii), the foreign national must pass the required specialized-level practical skills exam during Technical Intern Training (ii). The accepting organization must also be certified as an excellent organization by the Organization for Technical Intern Training (OTIT); even if the foreign national qualifies for Technical Intern Training (iii), the organization cannot accept them without that certification.

What Is Specified Skilled Worker?

This new status of residence began in April 2019 with the aim of addressing labor shortages in Japan. As of the end of March 2021, more than about 22,000 foreign nationals were staying in Japan under Specified Skilled Worker status, most of whom obtained it after completing Technical Intern Training (ii) or (iii). For a foreign national to work in Japan as a Specified Skilled Worker, both the accepting organization and the foreign national need approval: the accepting organization must join the relevant Specified Skilled Worker council, and the foreign national must obtain permission for Specified Skilled Worker status from the immigration authority. Rules for joining councils differ across the 14 Specified Skilled Worker fields, so companies planning to accept Specified Skilled Workers are advised to confirm in advance whether they can join the council.

Pros and Cons of Transitioning to Technical Intern Training (iii)

Pros

A common advantage of transitioning to Technical Intern Training (iii) is that wages can often be kept lower than for Specified Skilled Workers. Strictly speaking, there is no rule allowing lower wages for (iii) than for Specified Skilled Worker, but screening of wages and allowances is stricter for Specified Skilled Worker.

Also, for trainees from Thailand or China, income tax and resident tax are exempt during technical intern training, but that exemption ends under Specified Skilled Worker, so they must pay taxes.

Because the company must effectively bear the travel costs for entry and return for Technical Intern Training (iii) trainees, the benefits of transitioning to Technical Intern Training (iii) are greater for the foreign nationals themselves than for the accepting organization.

Cons

To transition to Technical Intern Training (iii), the trainee must generally pass the Grade 3 or specialized-level skills test taken during Technical Intern Training (ii). The Grade 3 or specialized-level test has practical and written components, but only a pass on the practical exam is required to qualify for (iii). However, although taking the Grade 3 or specialized-level test is now mandatory during Technical Intern Training (ii), before the Organization for Technical Intern Training (which now oversees the program) was established, the specialized-level exam was not required, so almost no trainees took it. Therefore, to bring back a foreign national who trained in the past as a Technical Intern Training (iii) trainee, that person must first come to Japan to take the Grade 3 or specialized-level exam and pass it before procedures for Technical Intern Training (iii) can even begin.

In addition, to accept Technical Intern Training (iii) trainees, the accepting organization must first be certified as an excellent organization. Certification requires scoring at least 60% on the Excellent Organization Requirements Conformity Declaration (a form listing items for excellent organization status, each with assigned points when met). The item with the highest point value is the pass rate of technical intern trainees on exams, including the basic-level exam during Technical Intern Training (i), the Grade 3 or specialized-level exam during (ii), and the Grade 2 or advanced-level exam during (iii). The Grade 2 or advanced-level exam taken by Technical Intern Training (iii) trainees is often very difficult depending on the occupation and work, and some exams are said to be nearly impossible to pass. If you accept Technical Intern Training (iii) trainees and they keep failing the Grade 2 or advanced-level exam, you may no longer meet the excellent organization requirements—another disadvantage.

Pros and Cons of Transitioning to Specified Skilled Worker

Pros

The period of stay for Specified Skilled Worker is up to five years, allowing longer employment in Japan than Technical Intern Training (iii). Technical intern training must follow a technical intern training plan, with progress recorded in training logs, and skills tests at each of Technical Intern Training (i), (ii), and (iii); Specified Skilled Worker has none of these, so it involves less administrative burden than technical intern training. On costs, technical intern trainees require the company to cover airfare for entry and return, exam fees for skills tests, costs of Japanese language study after entry, and living expenses during that period, among other items; Specified Skilled Worker has none of these, and airfare may be borne by the Specified Skilled Worker. Wages and allowances for Specified Skilled Workers may need to be set higher than for technical intern trainees, but considering acceptance-related costs and depending on the period of acceptance, overall costs can sometimes be lower than for technical intern trainees.

Cons

To accept Specified Skilled Workers, the company must join the Specified Skilled Worker council. Each of the 14 Specified Skilled Worker fields sets its own membership rules, and in some fields the joining process can be unclear or difficult. For example, in the manufacturing field, joining the council is required before the Specified Skilled Worker applies for the status of residence. That means at least about four months in total: about two months to join the council plus about two months for the status of residence application. Also, because Specified Skilled Worker only began in April 2019, laws change and special rules are often newly set depending on the foreign national’s country of origin, so developments must be monitored closely.

Summary

This article has introduced the pros and cons of Technical Intern Training (iii) and Specified Skilled Worker. Depending on the accepting organization, we encourage you to weigh the advantages and disadvantages of each and decide which system to use when accepting foreign nationals. If your priority is to keep current Technical Intern Training (ii) trainees employed at your company for as long as possible, the path Technical Intern Training (ii) → Technical Intern Training (iii) → Specified Skilled Worker is also an option worth considering.