Handling Transfers under Employment for Skill Development | Practical Points Companies Should Prepare Now

Conditions under which transfer is allowed and information confirmed to date

Transfer requirements are organized into two main types: “transfer for unavoidable circumstances” and “transfer based on the individual’s wishes.” Unavoidable circumstances are expected to include bankruptcy of the accepting company, labor-related law violations such as unpaid wages, and harassment. On this point, the thinking is close to that carried over from the Technical Intern Training Program.

For transfers based on the individual’s wishes, meeting conditions such as a certain period of employment, skill level, and Japanese language ability is expected to be a premise. However, detailed standards such as the specific number of years of employment and criteria by exam category may change depending on the status of the Immigration Services Agency of Japan’s operational guidelines for the Employment for Skill Development Program (<https://www.moj.go.jp/isa/applications/nyuukokukanri07_00002.html>) and related ministerial ordinances. As of the time of writing, this article therefore avoids stating them as settled facts. We recommend continually checking the latest requirements against the Employment for Skill Development Program implementation and application schedule (<https://www.yourbright.co.jp/ikusei-shuro/schedule/>).

In addition, as the body handling transfer operations, the Organization for Technical Intern Training is expected to take over licensing and supervision of supervising and support organizations under the Employment for Skill Development Program. Information on the program transition is also being published in stages on the Organization for Technical Intern Training’s Employment for Skill Development Program page (<https://www.otit.go.jp/employment_for_skill_development/01/>), so confirmation through the supervising and support organization is essential.

Impact and risks of transfer for company management

Easing of transfer rules has a direct impact on accepting companies’ staffing plans. In particular, the following three points are risks that management should keep in mind.

First is the risk that the payback period for hiring costs will be shortened. Accepting foreign nationals under Employment for Skill Development involves initial investment such as travel costs, housing preparation, and training expenses. If a transfer occurs earlier than expected, the company may lose the talent before recovering that investment.

Second is the risk that on-site skill succession will be interrupted. Because Employment for Skill Development treats “development” as one of its program purposes, when a person whom instructors have spent time training transfers, the company may not fully realize the benefit of that educational investment in-house.

Third is the risk that sudden staffing reviews will be required because of a transfer. The more severe the labor shortage in a field, the harder it is to secure replacement talent, and the response when a transfer occurs can affect the overall hiring plan. Labor market data and job trends from the Ministry of Health, Labour and Welfare can also be used when reviewing hiring plans through Hello Work, so it is desirable to stay aware of supply and demand for talent on an ongoing basis.

Practical company responses in preparation for transfer (hiring plans, conditions, and retention measures)

Responding to transfer risk needs to be considered on two tracks: “retention measures to prevent transfer” and “alternative hiring plans if a transfer occurs.”

As a retention measure, the first priority is not to make labor conditions such as wages, working hours, and days off less favorable than those of peer companies or the local market. One of the main motives for foreign nationals under Employment for Skill Development to consider transfer is the desire for better labor conditions, so reviewing compensation and conditions is the most direct preventive step.

Next, providing career development opportunities such as Japanese language learning support and qualification support is also effective. By supporting improvement of skills and Japanese ability within the company, you can create an environment in which the individual feels they can grow at this company.

In addition, daily-life support has a major impact on retention. The greater the anxiety about the foundations of daily life—housing, medical visits, administrative procedures, and so on—the stronger the tendency toward resignation or transfer. Establishing consultation channels in the person’s native language and life orientation, in coordination with the supervising and support organization, is a realistic approach.

As an alternative hiring plan, it is effective to secure multiple recruitment routes in fields your company can accept, based on the target fields and job categories under Employment for Skill Development (<https://www.yourbright.co.jp/ikusei-shuro/fields/>). Building recruitment channels in parallel through Hello Work and supervising and support organizations, and avoiding dependence on a single hiring channel, minimizes the impact when a transfer occurs.

Common questions from the field

Companies preparing to introduce the Employment for Skill Development Program often raise questions such as the following.

“If a transfer is requested, does the company have a right to refuse?” is heard especially often. Transfers for unavoidable circumstances are structured so that company consent is not a premise, so it is necessary to understand that refusal is basically not possible. For transfers based on the individual’s wishes, a process to confirm whether requirements are met is involved, so fact-checking through the supervising and support organization becomes important.

“If a transfer occurs, are the initial costs of acceptance reimbursed?” is also not uncommon. How costs are borne differs depending on individual contract terms and arrangements with the supervising and support organization, so it is desirable to state cost settlement rules for when a transfer occurs at the time the contract is concluded.

There is also the question, “Is transfer handled differently for those transitioning from Technical Intern Training versus talent newly accepted under Employment for Skill Development?” Applicable rules may differ depending on the transition timing and the point at which the status of residence is changed, so individual confirmation with the supervising and support organization or a gyoseishoshi (administrative scrivener) is the surest approach.

Failure patterns and how to avoid them

Failure patterns in which companies stumble on transfer response have common features.

The first is treating transfer rules as “not relevant to our company,” downplaying them and postponing reviews of labor conditions. Even if you rush to improve conditions only after a transfer request actually arises after the program takes effect, it is often too late if the intention to leave is already firm.

The second is when coordination with the supervising and support organization becomes merely formal and information sharing on transfers is delayed. Because the supervising and support organization is the practical contact point for transfer procedures, setting up regular information exchange is effective both for avoiding failure patterns and as a countermeasure.

The third is ending daily-life support with only the initial orientation and neglecting follow-up afterward. Dissatisfaction often builds from several months to about a year after joining and leads to consideration of transfer. Institutionalizing regular one-on-one meetings and catching early signs of dissatisfaction is an avoidance measure.

Points hiring managers often overlook

A point hiring managers often overlook first is a misunderstanding of the timeline that “transfers will fully take hold only after a certain transition period following program implementation.” Even if the number of eligible people is limited in the early stage of the program transition, transfer cases may increase over time, so preparation from a long-term perspective is essential.

Next, the presence of competing companies that could become transfer destinations is often overlooked. The more companies in the same field and region accept foreign nationals under Employment for Skill Development, the more competition arises on conditions. Grasping your company’s labor conditions relative to the industry is one of the points hiring managers often overlook.

Also note that internal rules and employment contracts related to transfer tend to be put off. Documenting the response flow for when a transfer occurs in advance can prevent confusion when a transfer request is actually made.

Diagram: Pre-hiring confirmation flow

When considering hiring foreign talent under Employment for Skill Development, advancing internal confirmation along a flow such as the following makes it easier to prepare with transfer risk in view.

First, confirm whether the field and job category your company targets are included under the Employment for Skill Development Program. Next, select a supervising and support organization and hold advance discussions on the response policy if a transfer occurs. Then compare labor conditions and daily-life support systems with industry standards and identify needed improvements. On that basis, secure multiple recruitment routes (Hello Work, introductions via the supervising and support organization, and so on) and prepare an alternative hiring plan in parallel. Finally, state response rules for when a transfer occurs in the employment contract and internal rules, and share them across related departments. Capturing this sequence as a “Diagram: Pre-hiring confirmation flow” in internal materials makes it smoother to align understanding among staff.

Practical checklist

• Have you confirmed that your company’s planned acceptance field is included in the target job categories under the Employment for Skill Development Program?
• Have you held advance discussions with the supervising and support organization on the contact structure and cost settlement rules if a transfer occurs?
• Have you compared your company’s labor conditions—wages, working hours, days off, and so on—with peer companies and the local market?
• Have you established an internal system for regular one-on-one meetings and follow-up after joining?
• Have you secured multiple alternative hiring routes if a transfer occurs (job postings via Hello Work, introductions via the supervising and support organization, and so on)?
• Have you stated transfer response rules in the employment contract and internal rules and shared them among relevant parties?
• Do you have a system to regularly check the latest operational guidelines published by the Immigration Services Agency of Japan and the Organization for Technical Intern Training?

Frequently asked questions (FAQ)

Q. How much more relaxed will transfer under Employment for Skill Development be compared with Technical Intern Training? A. Transfers that under Technical Intern Training were limited to unavoidable circumstances are expected to be positioned under Employment for Skill Development as transfers based on the individual’s wishes as well. However, details of the specific requirements will continue to be finalized depending on the status of operational guidelines and ministerial ordinances.

Q. Where can I check the criteria used to decide transfers? A. The surest way to understand the criteria for whether a transfer is allowed is through the Immigration Services Agency of Japan’s operational guidelines for the Employment for Skill Development Program and individual confirmation via the supervising and support organization. Companies should not decide on their own; prioritize confirmation from official sources.

Q. If a transfer occurs, how long does it take to secure replacement talent? A. It depends on job market conditions by field and region, but securing multiple recruitment routes through Hello Work and supervising and support organizations makes it easier to shorten the time needed for alternative hiring.

Q. What measure is most effective for preventing transfer? A. Reviewing labor conditions such as wages and working hours to align with industry standards is considered the most direct and effective measure. Continuously providing daily-life support and career development support is also important.

Summary

Transfer rules under the Employment for Skill Development Program are a major turning point from the Technical Intern Training Program, and companies are expected to continually review post-acceptance conditions and retention measures. Transfers for unavoidable circumstances and transfers based on the individual’s wishes differ in nature, so correctly understanding the criteria for each and establishing coordination with the supervising and support organization are practical keys.

Program details are expected to continue to be updated, so it is desirable to regularly check primary information published by the Immigration Services Agency of Japan, the Organization for Technical Intern Training, and the Ministry of Health, Labour and Welfare, consult the original text of related laws on e-Gov and similar sources, and keep updating your company’s acceptance framework. Also refer to the practical points in the Employment for Skill Development Program operational guidelines (<https://www.yourbright.co.jp/ikusei-shuro/operation-guidelines/>) and advance internal preparation in stages.

Related articles: Practical topics to review together

Also review practical articles on related themes as needed.

• Comprehensive guide to the Employment for Skill Development Program
• Japanese language requirements and training plans under Employment for Skill Development | What companies should prepare now
• How to choose a supervising and support organization for Employment for Skill Development | Differences from Technical Intern Training supervising organizations, selection criteria, and practical points to check