Why choose RSM Shiodome Partners?

True One-Stop Service For Business In Japan

As the number of foreign workers in Japan continues to hit record highs, managing "Status of Residence" (visas) has become a top-tier compliance priority. Unlike managing Japanese staff, employing foreign nationals requires strict adherence to the Immigration Control Act. Failure to maintain proper oversight can lead to severe legal penalties for the company. This article outlines the critical issues and practical precautions HR departments must master.

 

1. The Employer’s "Duty of Verification" and Liability Risks

The most fundamental principle is that the burden of preventing illegal employment lies with the employer.

 

Promoting Illegal Employment:

Under Article 73-2 of the Immigration Control Act, an employer can be prosecuted even if they were "unaware" that an employee’s status was invalid.

 

2026 Penalties:

Following recent reforms, penalties include up to 5 years of imprisonment and fines up to 5 million JPY. Furthermore, the company’s name may be publicly disclosed by the Ministry of Justice, causing irreparable brand damage. Verification is not a one-time task at hiring; it is a continuous obligation throughout the employment lifecycle.

 

2. Practical Points for Inspecting Residence Cards

Checking for the existence of a card is insufficient. HR must verify the following details on the original card:

 

Work Restrictions (Front Side):

"No Restrictions":

(Permanent Resident, Spouse of Japanese National, etc.) These individuals can work in any role, including unskilled labor.

 

"Authorized for Specified Activities only":

(Engineer/Specialist in Humanities, SSW, etc.) They can only perform work within their approved professional scope.

 

"No Work Allowed": 

(Student, Dependent) Work is prohibited unless the back of the card has the "Permission to Engage in Activity other than that Permitted" stamp.

 

Expiration Date & "Grace Period" Management:

If a card expires by even one day, the employee is "undocumented." If an application for renewal is pending, the employee enters a 2-month grace period.

 

HR Action:

You must confirm the "Application Pending" stamp on the back of the card or require the digital/paper receipt from the Immigration portal. In 2026, many companies now use automated HR software to alert them 3 months before any employee's visa expires.

 

3. Misalignment of Job Duties (Prohibition of Unskilled Labor)

A frequent point of failure is when the employee's actual work does not match their visa category.

The "Specialist" Trap: An employee with an "Engineer/Specialist in Humanities" visa is authorized for white-collar/professional work. If you hire someone as an "Interpreter" but habitually assign them to a factory line, warehouse packing, or restaurant floor service, the company is in violation.

 

Personnel Changes:

Before any internal transfer or promotion, HR must verify that the new role still fits within the scope of the existing residency status.

 

4. The "28-Hour Rule" for Students and Dependents

For part-time employees (Students/Dependents), time management is the primary compliance risk.

 

Strict 28-Hour Limit:

This is a total limit across all employers. If an employee works 15 hours for you and 15 hours for another company, they (and you) are in violation.

 

2026 Digital Tracking:

With the integration of My Number Cards and health insurance, the government’s ability to track total working hours across multiple employers has increased. HR should require a written pledge from part-timers stating they are not exceeding 28 hours in total.

 

Academic Breaks:

Students may work up to 8 hours per day during official school vacations, provided HR has a copy of the school's academic calendar.

 

5. Hiring Mid-Career Talent: The "Certificate of Authorized Employment"

When hiring a "tenshoku" (transfer) candidate, their current visa was approved based on their previous employer. It does not automatically guarantee they are eligible to work for you.

 

Risk Mitigation:

To avoid a denial during the next renewal, you should ask the candidate to apply for a "Certificate of Authorized Employment" (Shuro Shikaku Shomeisho). This is a formal document from Immigration confirming that their current visa is compatible with the job duties at your company. It serves as a "pre-approval" and provides peace of mind for both HR and the employee.

 

Summary

Managing residency status in 2026 requires more than just a spreadsheet of dates. It requires an understanding of job-visa compatibility and the diligence to track "grace periods" and part-time hours.

Given the frequent updates to Immigration policy, establishing a Unified Management Protocol including checking original cards, verifying pending applications, and utilizing the "Certificate of Authorized Employment" is the only way to ensure a stable, compliant, and global workforce.

Contact us

Complete this form and an RSM Shiodome Partners representative will be in touch.