In Japan, where labor shortages driven by a declining birthrate and aging population are severe, the number of companies considering hiring international talent is rising rapidly. However, hiring foreign nationals involves procedures and legal considerations that differ from hiring Japanese employees, and proceeding without this knowledge can lead to unexpected legal violations.

This article clearly explains seven essential points that hiring managers considering international talent for the first time should absolutely understand. If you are unsure where to start or worried about accidentally employing someone illegally, please read through to the end.

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Common Failure Patterns in Hiring Foreign Nationals

Before we get into the main points, let’s review failure patterns that actually occur often. Simply knowing these cases can help you prevent many problems before they arise.

Pattern 1: Allowing someone to work without checking their status of residence

There are cases where companies hire without checking the international talent’s residence card, only to discover later that the status of residence did not permit work. In such cases, the employer may also face charges for the crime of promoting illegal employment. We often hear, “I thought it was fine because they could speak Japanese,” but Japanese language ability and work eligibility are entirely separate matters.

Pattern 2: Job duties fell outside the scope permitted by the status of residence

Each status of residence has a defined scope of work that is permitted. It is not uncommon for companies to check the type of status but find that the actual duties fell outside the permitted scope. A typical pattern is assuming “it’s the same factory work, so it should be fine,” only to learn that the specific process assigned was outside the status.

Pattern 3: Putting off social insurance enrollment procedures

A certain number of managers mistakenly believe that “foreign nationals don’t need to enroll.” However, Japan’s social insurance applies regardless of nationality. Leaving someone unenrolled can result in back payments or administrative guidance, so prompt action is important.

To prevent these failures before they happen, make sure you thoroughly understand the following seven points.

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Point 1: Confirm the type of status of residence and whether work is permitted

The first thing you must check when employing a foreign national is their status of residence (visa). There are 29 types of status of residence, each with different scopes of permitted work and conditions.

Always confirm the following three points on the residence card (Residence Card) that the candidate presents.

  • Type of status of residence: Accurately identify the name of the status, such as “Engineer/Specialist in Humanities/International Services,” “Specified Skilled Worker,” “Skilled Labor,” “Student,” or “Permanent Resident”
  • Period of stay: Check whether it has expired and whether renewal will be needed after hiring
  • Work restrictions: Checkable in the “Work restrictions” field on the back of the card. If it says “No work permitted,” you must not, as a rule, allow the person to work

It is important to understand that some statuses of residence permit work and others do not. For example, “Student” does not, as a rule, permit work, but if the person has obtained permission to engage in activity other than that permitted under the status of residence, they may work within certain limits.

If you employ a foreign national without work eligibility, Article 73-2 of the Immigration Control and Refugee Recognition Act (the crime of promoting illegal employment) applies, and you may face imprisonment of up to three years or a fine of up to 3 million yen. At the time of hiring, always check the original and keep a copy on file.

To verify the authenticity of a residence card, you can use the “Residence Card and Related Documents Reading App” provided by the Ministry of Justice to read the IC chip information and confirm authenticity. Installing it on hiring managers’ smartphones makes verification smoother.

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Point 2: Match job duties with the status of residence

Simply confirming the type of status of residence is not enough. You need to verify that the duties the person will handle after hiring fall within the scope permitted under that status of residence.

The relationship between representative statuses of residence and corresponding duties is as follows.

Engineer/Specialist in Humanities/International Services

  • Corresponding duties: IT engineers, marketing, corporate planning, interpretation/translation, design, and similar roles
  • Note: Simple work such as assembly-line manufacturing, cleaning, or delivery is not permitted

Skilled Labor

  • Corresponding duties: Work requiring specific skilled expertise, such as foreign cuisine chefs, jewelry and precious metal processing, and pilots
  • Note: Engaging in duties not directly related to that skill is, as a rule, not permitted

Specified Skilled Worker (i) and (ii)

  • Corresponding duties: The 14 designated fields, including nursing care, construction, manufacturing, agriculture, food and beverage manufacturing, and food service
  • Note: Limited to the specific industrial field for which the status of residence was granted

Student (with permission for activities outside status)

  • Corresponding duties: Part-time work in general (with some restrictions)
  • Note: The cap of 28 hours per week (up to 40 hours per week during long school breaks) must be strictly observed

When employing international students as part-time workers, managing the 28-hour weekly cap is the employer’s responsibility. If they work at multiple workplaces, total hours are what count, so confirm with the individual and manage working hours appropriately. “They said it was fine” is not an acceptable excuse.

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Point 3: Issue the notice of working conditions in writing and in the person’s native language

Article 15 of the Labor Standards Act imposes an obligation on employers to clearly state working conditions at the time of hiring. This also applies when employing international talent.

In employment contracts with international talent, language barriers often cause trouble, so keep the following in mind.

  • Issuance in writing: Issue the notice of working conditions not only orally but in writing (or by electromagnetic means)
  • Guidance in the native language: The Ministry of Health, Labour and Welfare publishes “model notices of working conditions” in 11 languages, including English, Chinese, Vietnamese, and Tagalog—use them proactively
  • Explanation of key items: Carefully explain wages, working hours, days off, grounds for dismissal, and similar items in a language the person can understand

Using the Ministry of Health, Labour and Welfare’s model forms helps prevent omissions and is useful if issues arise later. In addition to the notice of working conditions, more companies are also creating guidebooks that explain key points of work rules in the person’s native language.

If working conditions are not clearly stated, international talent may leave early after joining because “the conditions differ from what I was told,” or the matter may lead to a report to the Labor Standards Inspection Office. Careful explanation at the outset directly helps prevent later trouble.

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Point 4: Fulfill the obligation to enroll in social insurance and labor insurance

Some people think, “Foreign nationals don’t need to join Japan’s social insurance,” but that is incorrect. Japan’s social insurance system applies to workers who meet certain conditions, regardless of the type of status of residence.

The main types of insurance you need to check when employing international talent are the following four.

Health insurance

  • Overview: Enrollment is, as a rule, required when working 30 or more hours per week (or three-quarters or more of a full-time employee’s hours)
  • Note: A switch from National Health Insurance may be required, so confirm before the person joins

Employees’ pension insurance

  • Overview: Enrollment obligations arise under the same requirements as health insurance
  • Note: If there is a social security agreement (EPA) with the person’s home country, exemption from dual enrollment may be available

Employment insurance

  • Overview: Enrollment is required when there is an expectation of employment of 20 or more hours per week and 31 or more days
  • Note: Nearly all statuses of residence are covered, except foreign nationals who are Special Permanent Residents or have no status of residence

Workers’ accident compensation insurance

  • Overview: Covers all employed workers (regardless of part-time, temporary, or foreign national status)
  • Note: Premiums are borne entirely by the employer; there is no reason to exclude someone because they are a foreign national

If you neglect enrollment obligations, you may not only be charged premiums retroactively but also face administrative guidance and damage to your corporate image. Once hiring is decided, it is important to proceed with procedures promptly.

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Point 5: File the foreign national employment status notification with Hello Work

When you hire or when a foreign national leaves employment, notification to Hello Work (Public Employment Security Office) is a legal obligation. The basis is Article 28 of the Act on Comprehensive Promotion of Labor Policies, and failure to notify may result in a fine of up to 300,000 yen.

An overview of the notification is as follows.

Timing and deadline for notification

  • Scope: Both at hiring and at separation
  • Deadline: By the 10th of the following month in each case
  • Method: In-person submission at Hello Work or online application via e-Gov

Foreign nationals subject to notification

  • Scope: All foreign workers except Special Permanent Residents (such as Zainichi Koreans)
  • Note: For temporary agency workers, the dispatching employer is the party obligated to notify

Main items to enter in the notification

  • Name, status of residence, period of stay, date of birth, sex, nationality, whether permission for activities outside status has been granted, and similar items

For details, see the Ministry of Health, Labour and Welfare’s foreign national employment status notification page. Notifications can also be filed online via e-Gov, so you can complete the process without bringing paper documents.

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Point 6: Prohibit Discriminatory Treatment Based on Nationality

One of the most common compliance violations when hiring and employing international talent is unfair differences in treatment based on nationality. Article 3 of the Labor Standards Act clearly prohibits discriminatory treatment in working conditions on the grounds of nationality, creed, or social status.

Specific points to watch for are as follows.

  • Minimum wage: Prefectural and industry-specific minimum wages apply regardless of nationality
  • Overtime and premium wages: Premium wages for overtime, late-night, and holiday work must be paid using the same calculation formula as for Japanese employees
  • Relationship between job duties and wages: Wage differences with Japanese employees performing equivalent work cannot be justified by nationality alone
  • Employee benefits: Excluding only international talent from company housing, meal subsidies, congratulatory and condolence payments, and similar benefits on the basis of nationality may constitute unfair discrimination

In the hiring selection process as well, unfairly rejecting candidates on the basis of nationality, ethnicity, or country of origin is problematic. Documenting selection criteria in advance based on job requirements and standardizing evaluation sheets helps ensure transparency in the selection process.

Pros and Cons of Hiring Foreign Workers also explains that accepting international talent under an appropriate framework directly contributes to greater corporate competitiveness. Ensuring equal treatment is both a form of risk management and the foundation for building a healthy workplace environment.

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Point 7: Establish Retention Support and Living Assistance After Joining

To prevent international talent you have carefully hired from leaving early, a post-joining support system is essential. For international talent, getting settled in Japan is as significant a challenge as the hiring process itself. Securing housing, opening a bank account, contracting a mobile phone, filing a move-in notification with the municipality, and other procedures can each become stumbling blocks due to the language barrier and the complexity of the systems involved.

Examples of support that companies should put in place before and after joining are as follows.

  • Securing housing or introducing a real estate agency (including addressing guarantor issues at move-in)
  • Support for opening a bank account and mobile phone contract
  • Guidance on filing a move-in notification with the municipality and obtaining a My Number Card
  • Explanation of workplace rules, manners, and emergency contact systems (guidance in the employee’s native language is preferable)
  • Early identification of work-related concerns and living issues through regular one-on-one meetings
  • Establishing a consultation desk (using an in-house multilingual staff member or an external organization)

When hiring international talent with Specified Skilled Worker status of residence, the accepting company or a Registered Support Organization is legally obligated under immigration laws and regulations to prepare a “support plan” and carry out living orientation, regular interviews (at least once every three months), accompaniment support for administrative procedures, consultation response, and other measures. If your company lacks the resources to provide this support in-house, you may outsource it to a Registered Support Organization.

YourBright is a Registered Support Organization (registration number: 19-登-000992) that provides end-to-end support from hiring Specified Skilled Worker talent through post-joining retention support. Because native-language staff continue to follow up after joining, communication problems caused by language barriers and the risk of early turnover can be significantly reduced. For the specific steps involved in hiring international talent, please also refer to our article explaining the foreign worker hiring process.

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Summary: 7 Key Points for Successfully Hiring Foreign Workers

Here is a recap of the key points for properly advancing foreign worker hiring.

  1. Confirm the type of status of residence and whether work is permitted: Check the type of status of residence, expiration date, and work restrictions on the residence card to avoid the risk of the offense of facilitating illegal employment (Article 73-2 of the Immigration Control Act)
  2. Match job duties to the status of residence: Assign work only within the scope permitted by the status of residence, and strictly observe the weekly limit of 28 hours for international students
  3. Issue a written notice of working conditions in the employee’s native language: Fulfill the disclosure obligation under Article 15 of the Labor Standards Act, and make use of the multilingual model forms published by the Ministry of Health, Labour and Welfare
  4. Fulfill the obligation to enroll in social insurance and labor insurance: Complete enrollment promptly when eligibility requirements are met, regardless of nationality
  5. File the Notification of the Employment Status of Foreign Nationals with Hello Work: Submit the notification by the 10th of the month following hiring or separation to avoid a fine of up to 300,000 yen
  6. Prohibit discriminatory treatment based on nationality: Thoroughly ensure equal treatment regarding minimum wage, premium wages, and employee benefits (Article 3 of the Labor Standards Act)
  7. Establish retention support and living assistance after joining: For Specified Skilled Worker status, preparing and implementing a support plan is a legal obligation, and outsourcing to a Registered Support Organization is also an option

Hiring international talent may appear procedurally complex, but you can proceed with confidence by addressing each point carefully. If you feel uncertain about hiring foreign workers for the first time, consider consulting a Registered Support Organization or an administrative scrivener early on.

YourBright offers a fully success-based fee model with zero initial and operating costs, providing one-stop support from introducing international talent through status of residence procedure support and post-joining retention support. From a database of more than 170,000 international talent candidates, we propose ready-to-contribute talent matched to your industry and conditions. Please feel free to contact us (Tel: 03-6908-6143, hours: 9:00–18:00).