Japanese Work Visas: Procedures and Strategic Points by Recruitment Type for Foreign Employees

In the modern business environment, where globalization is accelerating, acquiring talented foreign professionals with diverse backgrounds has become a crucial management strategy for Japanese companies to maintain international competitiveness and generate new innovations. However, the process of employing foreigners does not end with mere recruitment activities. The Japanese Immigration Control and Refugee Recognition Act (hereinafter referred to as the “Immigration Act”) and related laws and regulations strictly define the requirements and procedures for foreigners to work in Japan. It is essential to accurately understand and comply with these legal procedures. Inadequacies or misunderstandings in the process can lead to significant delays in recruitment plans or, in the worst case, pose serious compliance risks. This article focuses on the three main recruitment forms that companies face when hiring foreign talent in Japan: “hiring new graduates who are international students,” “hiring foreign residents in Japan for job changes,” and “hiring foreign nationals residing overseas.” We will provide a comprehensive and specific explanation of the legal procedures, required documents, and practical considerations for each scenario, based on the latest laws and regulations. This will offer guidance for corporate executives and legal/human resources personnel to strategically and smoothly advance each recruitment process.

Understanding the Basics of the Japanese Work Visa System

To understand the procedures for employing foreigners, it is essential to first grasp the basic structure of the Japanese residency qualification system.

Types of Residence Status That Permit Employment in Japan

The Japanese Immigration Control and Refugee Recognition Act establishes “residence status” as the legal status for foreigners to stay and engage in activities in Japan. The activities that can be conducted in Japan are strictly defined for each type of residence status, and whether employment activities, which involve earning an income, are permitted depends on the type of residence status held.

Residence statuses can be broadly classified into three groups based on the permissibility of employment activities. Firstly, there are residence statuses based on status/position that have no restrictions on activities, such as “Permanent Resident” and “Spouse or Child of Japanese National,” which in principle allow employment in any occupation. Secondly, there are residence statuses with activities limited to specific fields. This includes statuses like “Engineer/Specialist in Humanities/International Services,” which are most commonly used when companies employ foreign professionals. Foreign nationals with this residence status can only engage in the permitted range of activities. Thirdly, there are residence statuses such as “Student” and “Temporary Visitor,” which in principle do not permit employment.

This article will focus on the “Engineer/Specialist in Humanities/International Services” residence status, which is most relevant when employing white-collar professionals. This residence status encompasses the following three categories of activities:

• Engineering: Activities that require technical knowledge or skills in the fields of physical science, engineering, or other natural sciences. Examples include IT engineers, programmers, mechanical design engineers, and research developers.
• Humanities Knowledge: Activities that require knowledge in the fields of law, economics, sociology, or other humanities. Occupations such as marketing, finance, legal affairs, and management consulting fall under this category.
• International Services: Activities that require thought or sensitivity based on foreign cultures. This includes translators, interpreters, language instructors, international trade operations, designers, and more.

Common Requirements for Acquiring Residency Status in Japan

To obtain the residency status of “Engineer/Specialist in Humanities/International Services” in Japan, both the foreign national applicant and the employing company must meet the criteria set by the Ministry of Justice ordinance.

Firstly, the applicant must have an academic background or practical experience related to the job they intend to engage in. Specifically, this typically means having graduated from a university in a relevant field or possessing over 10 years of practical experience. However, for tasks other than translation, interpretation, and language instruction within “International Services,” having more than 3 years of relevant work experience is considered sufficient. The Immigration Services Agency of Japan rigorously evaluates the relevance between the applicant’s field of study or career history and the job duties they will undertake after being hired.

Next, from the company’s perspective, important requirements include the amount of remuneration and the stability of the business. The salary received by the foreign national must be equal to or greater than that of a Japanese employee performing similar work. This is a crucial standard to prevent the employment of foreign workers at unfairly low wages. Article 3 of the Japanese Labor Standards Act also prohibits discriminatory treatment in wages and other working conditions based on nationality, and this principle is taken into account during the residency status examination. Furthermore, the employing company must demonstrate the stability and continuity of its business, thereby showing its capacity to employ the foreign national continuously and pay their salary reliably.

Corporate Categorization System in Visa Application Procedures

In the visa application process, the Immigration Services Agency of Japan categorizes employers, which are the companies, into four categories based on their size and reliability to expedite the application process. The category determines the volume of documents required to be submitted at the time of application.  

• Category 1: Companies listed on the Japanese stock exchange, public interest corporations authorized by the government, etc.
• Category 2: Organizations or individuals with a total amount of withholding tax of 10 million yen or more on the legal record of salary income withholding slips for the previous year.
• Category 3: Organizations or individuals (excluding Category 2) who have submitted the total legal record for the previous year.
• Category 4: Organizations or individuals not falling under any of the above categories (such as newly established corporations).

Companies in Categories 1 and 2 are considered to have high social credibility and stable management, thus the required documentation is significantly simplified. On the other hand, companies in Categories 3 and 4, especially newly established corporations, are required to submit more documents (such as business plans and financial statements) to prove the stability of their business. This categorization system is not merely a difference in administrative procedures. Understanding which category your company falls into is extremely important for setting recruitment schedules and preparing necessary documents. For example, startups that fall under Category 4 need to plan their hiring with the understanding that they will undergo a longer period of residency status review and more detailed scrutiny compared to Category 1 listed companies. This is a strategic element that directly affects the allocation of time and human resources in recruitment activities.  

Recruitment by Category: Hiring International Students as New Graduates in Japan

Hiring talented international students graduating from universities and vocational schools within Japan as new graduates is an important opportunity for many companies to acquire valuable human resources.

Overview of Procedures: “Application for Change of Residence Status”

The residence status of “Student” held by international students is intended for academic purposes and does not, in principle, allow full-time employment. Therefore, to start working officially at a company after graduation, it is necessary to change the residence status to one that permits employment, typically to “Engineer/Specialist in Humanities/International Services,” before the start date of employment. This procedure is known as the “Application for Change of Residence Status,” and is carried out by the individual at the regional immigration bureau.

Application Process and Required Documents

Although the application is made by the student, the employer is obligated to prepare and provide a number of supporting documents necessary for the application. The required documents are broadly divided into those prepared by the applicant and those prepared by the company.  

The main documents prepared by the applicant (international student) include:

• Application for Change of Residence Status
• Passport photo (4cm x 3cm)
• Passport and Residence Card (to be presented at the counter)
• Certificate of Graduation or Expected Graduation Certificate
• Curriculum Vitae

The main documents prepared by the host company include:

• Documents proving the company’s category (e.g., a copy of the “Quarterly Securities Report” for Category 1, a copy of the “Legal Record of Withholding Taxes” for Categories 2 and 3, etc.)  
• Certificate of Registered Matters
• Materials clarifying the content of the business (company brochures, pamphlets, etc.)
• Copies of the most recent fiscal year’s financial statements (especially for Categories 3 and 4)
• Copies of the employment contract or notification of working conditions (detailing job description, salary amount, employment period, etc.)

The official application form, “Application for Change of Residence Status,” can be downloaded from the Immigration Services Agency’s website.

• Website Name: Immigration Services Agency
• Page Title: Application for Change of Residence Status
• URL: https://www.moj.go.jp/isa/applications/procedures/16-2.html

Application Counter, Duration, and Points of Caution

The application is made at the counter of the regional immigration bureau that has jurisdiction over the applicant’s place of residence.  The standard processing time published by the Immigration Services Agency is one to two months, but during the graduation season from March to April, when applications surge, the review period tends to be longer than usual.  Therefore, it is wise for companies to plan a schedule with a two to three-month buffer.

The timing of the application is also crucial. For students graduating in March, applications are usually accepted from around December of the previous year (this may vary depending on the jurisdiction). Once a job offer is confirmed, it is essential to proceed with preparations promptly to ensure approval is obtained before the start date. Additionally, careful management of the residence period is necessary to prevent the current “Student” residence status from expiring during the application process.

Recruitment Types: Hiring Mid-Career Foreign Nationals Residing in Japan

Many companies actively recruit foreign nationals who are already working in Japan, expecting them to be immediately effective in their roles. The procedures for such recruitment depend on the relationship between the foreign national’s current residency status and the new job responsibilities.

Preliminary Verification: Consistency Between Job Responsibilities and Residency Status

The most crucial first step in mid-career recruitment is to ensure that the candidate’s current residency status permits the range of activities that align with the job responsibilities they will undertake at your company. For example, if you hire an IT engineer with a “Engineer/Specialist in Humanities/International Services” residency status to work as an IT engineer at another company, the scope of activities is likely to be the same. However, if you hire the same IT engineer for a marketing position, the scope of activities may be deemed different. Neglecting this verification can lead to problems in later procedures.

Procedures When Job Responsibilities Are Within the Same Scope

If the job responsibilities after changing jobs are within the scope permitted by the current residency status, there is no need to change the residency status itself. However, legally, the foreign national has an obligation to report the change of employer.

This procedure is called “Notification of a Contracting Organization” and is mandated by the foreign national under Article 19-16 of the Japanese Immigration Control Act. Specifically, a notification that the contract with the previous company has ended must be submitted within 14 days of leaving the previous company, and a notification that a contract has been concluded with the new company must be submitted within 14 days of joining the new company. This notification can be done online using the Immigration Services Agency’s electronic notification system, in person at the local immigration bureau, or by mail to the Tokyo Immigration Bureau.

Additionally, while not a legal obligation, there is a highly recommended procedure from a risk management perspective for companies, which is the application for the “Certificate of Eligibility for Employment.” This certificate officially confirms by the Immigration Services Agency that the new job responsibilities at the new company are within the scope of the current residency status. Although this procedure is voluntary, it has significant benefits. Residency status is renewed every few years, and during the review, the activities at the new company after the job change will be subject to re-examination. If at the time of renewal, the job responsibilities are determined to be outside the scope of the residency status, the renewal may be denied, and the employee may face the serious risk of being unable to continue working. Obtaining the “Certificate of Eligibility for Employment” at the time of job change can prevent this risk in advance. In other words, it is an extremely effective strategic measure to eliminate uncertainty at the time of future renewal applications and to ensure employment stability.

Procedures When Job Responsibilities Are of a Different Scope

If the job responsibilities after changing jobs are outside the scope of the current residency status (for example, hiring someone with an “Education” residency status for a corporate planning position), the aforementioned “Change of Residency Status Permission Application” becomes mandatory. Until this application is approved, the individual cannot engage in the new job responsibilities. The flow of procedures and required documents are almost the same as when hiring a newly graduated international student.

Points to Note in Recruitment

There are points to be cautious about in mid-career recruitment, especially when the candidate is unemployed. The Immigration Control Act stipulates that if a person does not engage in the activities permitted by their residency status without a valid reason for more than three months, their residency status may be revoked. In other words, candidates who have been unemployed for more than three months during their job search carry the risk of having their residency status revoked. When hiring such candidates, it is necessary to be aware that the review for future residency status renewal or change applications may be stricter than usual.

Recruitment Types: Hiring Foreign Nationals Residing Overseas

When hiring foreign professionals residing overseas to work in Japan, different procedures are required compared to domestic recruitment.

Overview of Procedures: “Application for Certificate of Eligibility”

In this case, a Japanese company first acts as a proxy and applies to the regional immigration bureau for the issuance of a Certificate of Eligibility (COE). The COE is a document that certifies in advance by the Minister of Justice that the foreign applicant meets the conditions for entry and residence in Japan. After the COE is issued, the foreign national must submit it to the Japanese embassy or consulate in their own country to receive an official visa. They then use this visa to enter Japan, completing a two-step process.

Application Process and Required Documents

The COE can be applied for by the applicant themselves or by a proxy such as an employee of the receiving organization.

The required documents vary depending on the company’s category, but similar to the application for change of residency status, documents related to both the applicant and the receiving company are required.

The main documents prepared by the receiving company include:

• Application form for Certificate of Eligibility
• Passport-sized photo (of the applicant)
• Self-addressed return envelope
• Documents sent by the applicant (diploma, resume, work history, qualification certificates, etc.)
• Documents proving the company’s category, certified copy of registration, recent financial statements, copy of employment contract, etc.

The official application form, “Application for Certificate of Eligibility,” can be downloaded from the Immigration Services Agency’s website.

• Website name: Immigration Services Agency
• Page title: Application for Certificate of Eligibility
• URL: https://www.moj.go.jp/isa/applications/procedures/16-1.html

Application Window, Duration, and Points of Caution

The application is made at the regional immigration bureau that has jurisdiction over the location of the receiving company. The standard processing time is between one to three months, which is the longest lead time among the three types of recruitment. Therefore, when planning recruitment from overseas, it is necessary to take this review period into account and schedule the project accordingly.

Particularly important is the validity period of the issued COE. The COE becomes invalid if the individual does not enter Japan within three months from the date of issue. Within this period, the individual must obtain a visa in their own country and complete travel to Japan.

Comparing the required time for these different procedures is very important in devising a recruitment strategy. For example, if there is an urgent need to secure personnel within two months, recruiting from overseas, which can take one to three months to obtain a COE, is not realistic. In such cases, hiring a job-changer residing in Japan is quicker. However, even in this case, a prompt administrative process is required due to the obligation to report within 14 days after joining the company. Thus, understanding the legal requirements and timelines of each procedure comprehensively and selecting the most suitable recruitment channel for your company’s needs is key to success.

Comparison and Summary of Procedures

We have summarized the main differences in the residency status procedures for the three types of employment we have discussed in the table below. This table will assist corporate personnel in quickly grasping the key points of each scenario and in devising appropriate hiring plans.

Conclusion

Japan actively welcomes foreign professionals with specialized skills and knowledge, yet the legal system governing their employment is highly intricate, and procedural errors are not tolerated. To successfully hire foreign talent, it is essential to accurately understand these complex legal procedures and manage them strategically. Seeking the assistance of experts and proactively navigating these processes is not merely a cost but a strategic investment to secure vital business resources and avoid legal risks.

Monolith Law Office has a proven track record of providing legal services related to this theme to a diverse range of client companies within Japan. Our strength lies in the deep expertise in the procedures of employing foreigners, complemented by the presence of multiple attorneys who are native English speakers and hold foreign legal qualifications. This enables us to offer meticulous and smooth support that transcends language and legal cultural barriers, even to companies expanding globally. If you encounter any difficulties with the application procedures for residency status as explained in this article, please do not hesitate to consult with our firm. We are committed to strongly supporting the smooth integration of your valuable foreign employees from a legal standpoint.