In recent years, many companies have turned to hiring foreign nationals to address labor shortages and drive globalization. However, engaging in recruitment without a deep understanding of the complex Immigration Control and Refugee Recognition Act carries significant legal risks.

One of the most critical risks for employers is the crime of "Promoting Illegal Employment" (Fuhō Shūrō Jojo-zai). This article explains the scenarios that constitute illegal employment and outlines the concrete measures companies must take to stay compliant.

1. Three Common Scenarios of Illegal Employment

First, it is essential to understand what qualifies as "illegal employment" under Japanese law. This generally falls into three patterns:

① Employment of Undocumented Individuals: This includes hiring those who entered the country illegally or those who have overstayed their authorized period of stay (overstayers). Since they lack a valid Status of Residence, they are prohibited from all work.

② Employment Under a "Non-Working" Visa: This occurs when a foreign national on a "Temporary Visitor" (tourist/business), "Student," or "Trainee" visa works without explicit permission.

• Note: Students and those on "Dependent" visas may work only if they have obtained "Permission to Engage in Activity other than that Permitted," and even then, they are typically restricted to 28 hours per week.

③ Employment Outside the Permitted Scope: Even if a worker has a valid work visa, they cannot work outside their authorized category. For example, someone with an "Engineer/Specialist in Humanities" visa is generally prohibited from performing unskilled labor (such as factory line work or dishwashing). Similarly, students working more than the permitted 28 hours per week fall into this category.

2. The Crime of "Promoting Illegal Employment"

If an employee works illegally, the punishment extends beyond the individual to the employer. Under Article 73-2 of the Immigration Control Act, companies can be charged with Promoting Illegal Employment for:

• Hiring a foreign national who is not authorized to work.
• Placing a foreign worker in a role outside their authorized scope.
• Brokering illegal employment for foreign nationals.

"I Didn't Know" Is Not a Valid Defense

Critically, an employer can be prosecuted even if they claim they were unaware of the worker's illegal status. If the employer failed to verify the Residence Card or was otherwise negligent, they are held legally responsible.
 

Significant Penalties (Effective June 2025):

Following the 2024 legal reforms, penalties were strictly increased starting June 1, 2025. Violations now carry a maximum penalty of:

• Up to 5 years of imprisonment (now classified as "imprisonment with work" or Kokin-kei).
• Fines up to 5 million JPY (approx. $34,000 USD).
• Both imprisonment and fines.
• Furthermore, under "Dual Liability" provisions, the corporation itself can face massive fines (potentially up to 100 million JPY) if an employee or agent commits this crime.

3. Concrete Measures to Prevent Compliance Violations

To mitigate these risks, companies must implement a rigorous verification process during the hiring stage.

• Verify the Original Residence Card: During interviews, you must inspect the original Residence Card (Zairyu Card). Copies or photos can be easily forged and are insufficient for due diligence.
  • Front Side: Check the Status of Residence (to ensure it permits the intended job) and the Expiration Date.
  • Back Side: For students or dependents, check the "Permission to Engage in Activity other than that Permitted" section. Ensure it says "Permitted" (Kyoka).
• Use the Official Verification Portal: To combat sophisticated forgeries, use the Immigration Services Agency's "Residence Card Validity Check" website. By entering the card number and expiration date, you can instantly verify if the card is legitimate and active.
• Check the "Certificate of Designation" (Shiteisho): For those on "Designated Activities" or "Highly Skilled Professional" visas, the Residence Card alone may not list specific work restrictions. You must check the Certificate of Designation (a paper slip usually stapled to the passport) to confirm the specific employer and duties permitted.
• Filing "Notification of Employment of Foreigners": When hiring (or when an employee leaves), you are legally required to notify Hello Work. Failure to do so, or filing a false report, can result in a fine of up to 300,000 JPY.

4. Conclusion

Hiring foreign talent is a powerful way to grow your business, but it requires strict labor management. The "Promotion of Illegal Employment" statutes are severe and apply regardless of whether the violation was intentional or a result of negligence. Protecting your company—and your employees—starts with a thorough verification of residency status and proactive expiration management.

If you encounter complex cases or "gray areas" regarding job duties, we strongly recommend consulting a Certified Administrative Scrivener or a legal expert specializing in immigration.

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