Comprehensive Guide to Visa Procedures for Recruiting Foreign Employees in Japan by Type of Employment Form

For modern Japanese companies, securing global talent is a crucial management strategy to achieve business growth. However, the recruitment process for exceptional foreign talent is governed by the complex legal procedures set forth in Japan’s “Immigration Control and Refugee Recognition Act” (hereinafter referred to as the “Immigration Act”). This law is the cornerstone that manages the activities of all foreigners entering and residing in Japan, and accurately understanding and complying with its provisions is an essential legal obligation for companies. Mistakes in the procedure can lead to not just delays in the hiring plan but also the potential for serious legal risks. This article aims to provide a comprehensive explanation of the procedures and points of caution for three typical recruitment forms that corporate executives, legal, and HR personnel may encounter in the practice of employing foreigners. Specifically, it will cover scenarios such as hiring a foreign national with a “Dependent” visa as a full-time employee, employing a foreign national with a “Status of Residence” visa, and offering a job to a foreign national who is in Japan on a “Short-Term Stay.” Understanding and executing these procedures accurately is not merely administrative work but an extremely important task in building a company’s compliance structure and managing legal risks.

The Basic Principles of Foreign Employment and Corporate Legal Responsibility in Japan

When companies hire talent regardless of nationality, they are subject to specific legal obligations. In the case of employing foreigners in Japan, there are particularly stringent verification duties based on the Japanese Immigration Control Act. All companies must verify the residence card or passport of the foreign individual before concluding an employment contract and commencing work, ensuring that the individual holds a valid residence status that permits employment and that the period of stay is effective. Failure to fulfill this verification duty and employing a foreigner without the proper work authorization can lead to serious legal liabilities for the company.

Article 73-2 of the Japanese Immigration Control Act defines the “Crime of Promoting Illegal Employment.” This provision penalizes those who engage in business activities that involve illegal employment or who place individuals under their control for the purpose of engaging in illegal work. Violations can result in imprisonment for up to three years or a fine of up to 3 million yen for individuals, or a fine of up to 3 million yen for corporations. A critical aspect of this law is that the claim of ignorance, or “I didn’t know,” is generally not accepted as a defense. Even a “negligence” such as failing to check the residence card can lead to punishment. In other words, the law demands that companies establish a proactive and reliable verification system. Therefore, following the appropriate procedures for each recruitment type, which we will explain, is the only way to avoid the risk of the Crime of Promoting Illegal Employment and to prove that a company is fulfilling its legal obligations.

Key Points for Hiring by Visa Type ①: Employing Foreign Nationals with a “Dependent” Visa as Full-time Employees in Japan

The “Dependent” residence status in Japan is granted to the spouses and children who are financially supported by a foreign national working in Japan, and its primary purpose is for family members to reside in Japan together. Therefore, this residence status does not inherently permit employment activities. However, employment can be exceptionally allowed by obtaining “Permission to Engage in Activity other than that Permitted under the Status of Residence Previously Granted” based on Article 19 of the Japanese Immigration Control Act. This permission is generally limited to work up to 28 hours per week, envisaging part-time or casual employment. Consequently, employing a foreign national holding a “Dependent” visa as a full-time employee beyond the scope of this permission is not legally possible without further steps.

To hire as a full-time employee, it is essential to change the current “Dependent” status to a work-eligible residence status that matches the job description, such as “Engineer/Specialist in Humanities/International Services.” This process is the “Application for Change of Status of Residence” stipulated in Article 20 of the Japanese Immigration Control Act. This application is not merely an update of the residence status type but involves a rigorous examination equivalent to applying for a completely new work visa. The Immigration Services Agency of Japan reviews from scratch whether the applicant meets the requirements for the new residence status. In particular, the relevance between the applicant’s educational background and work experience and the job duties planned by the company is an extremely important criterion for examination. For instance, if a company intends to hire someone who majored in engineering at university for a marketing position, it would be difficult to obtain permission without a reasonable explanation of the relevance between the job duties and the major. Companies must recognize that this application is not a mere formality but a review that questions the validity of the hiring itself and must prepare thoroughly.

The application for change of residence status is submitted to the regional immigration bureau that has jurisdiction over the applicant’s place of residence. The procedure usually requires a review period of one to two months. When the application is approved, a fee of 6,000 yen is required at the counter, or 5,500 yen if applied online.

The necessary documents for the procedure are prepared by both the applicant and the accepting company. The main documents are as follows:

• Documents prepared by the applicant
  • Application for Change of Status of Residence
  • Photograph (4cm tall x 3cm wide)
  • Passport and Residence Card (for presentation)
  • Documents proving educational background and work history (e.g., diploma, certificate of employment)
• Documents prepared by the company
  • Company’s commercial and corporate registration certificate
  • Copy of the financial statements for the most recent fiscal year
  • Summary table of legal documents such as withholding tax slips for the previous year’s employee salaries
  • Copy of the employment contract (specifying job duties, salary, period, etc.)
  • Reason for employment document (explaining the necessity of hiring)

There is a categorization system that simplifies the submission of documents depending on the size of the company (listed companies, small and medium-sized enterprises, etc.), so it is important to check which category your company falls under. The format of the application form and details of the required documents can be checked on the website of the Immigration Services Agency of Japan.

Reference: Application for Change of Status of Residence | Immigration Services Agency of Japan

Reference: Residence Status “Engineer/Specialist in Humanities/International Services” | Immigration Services Agency of Japan

Key Points for Hiring Based on Visa Status in Japan: Employing Foreign Nationals with Status-Based Visas

Residence statuses such as “Permanent Resident,” “Spouse or Child of Japanese National,” “Spouse or Child of Permanent Resident,” and “Long-Term Resident” are granted based on an individual’s status or position, rather than specific activities. Therefore, they are referred to as “status-based residence statuses” or “status-based visas.” Foreign nationals holding these statuses are not subject to any legal restrictions on employment activities, just like Japanese citizens. Consequently, companies can hire them using the exact same procedures as for Japanese employees, regardless of job type or working hours. No procedures such as changes in residence status with the Immigration Bureau are necessary, making the hiring process very straightforward.

However, the simplicity of this process can inadvertently lead to overlooking legal obligations, so caution is necessary. Even when employing foreign nationals with status-based visas, companies are obligated to report to Hello Work (Public Employment Security Office) under Article 28 of Japan’s “Act on Comprehensive Promotion of Labor Policies, and Support for the Employment Stability and Career Advancement of Workers.” This report is known as the “Notification of Employment of Foreign Nationals” and is mandatory for all employers. Failure to submit this report, or submitting a false report, may result in a fine of up to 300,000 yen.

Since no application to the Immigration Bureau is required, there is a risk that this notification to Hello Work might be overlooked in the standard internal hiring process. To prevent such compliance violations, it is highly effective to incorporate a checking mechanism into the onboarding process at the time of hiring, which automatically initiates the notification process to Hello Work if the nationality is confirmed to be foreign (excluding special permanent residents).

The method of notification varies depending on whether the foreign national becomes an insured person under employment insurance or not.

1. If the person becomes an insured person under employment insurance:
   • Procedure: By adding information related to the foreign national, such as residence status, period of stay, and nationality, to the regular “Notification of Acquisition of Employment Insurance Qualification” (Form No. 2), the notification is completed.
   • Submission destination: Hello Work that has jurisdiction over the location of the business establishment.
   • Submission deadline: By the 10th day of the month following the month of hiring.
2. If the person does not become an insured person under employment insurance:
   • Procedure: A separate “Notification of Employment Situation of Foreign Nationals” (Form No. 3) must be submitted.
   • Submission destination: Hello Work that has jurisdiction over the location of the business establishment where the foreign national works.
   • Submission deadline: By the end of the month following the month of hiring.

Similarly, at the time of separation from employment, the submission of the “Notification of Loss of Employment Insurance Qualification” or the “Notification of Employment Situation of Foreign Nationals (Separation)” is also mandatory. The notification forms can be downloaded from the Ministry of Health, Labour and Welfare’s website.

Reference: About Notification of Employment Situation of Foreign Nationals | Ministry of Health, Labour and Welfare

Key Points for Hiring by Visa Type ③: Offering a Job to a Foreign National on a Short-Term Stay in Japan

The “Short-Term Stay” visa status in Japan is intended for temporary visits that do not involve remunerative activities, such as tourism, visiting relatives, or short-term business affairs (meetings, negotiations, etc.). Therefore, it is strictly prohibited for foreign nationals with this visa status to engage in employment within Japan. Even if a company conducts an interview with a talented individual who is in Japan on a “Short-Term Stay” and extends a job offer, it is generally not permitted to immediately employ that individual within Japan and change their visa status to a working visa.

According to Article 20, Paragraph 3, proviso of the Japanese Immigration Control Act, changing visa status from “Short-Term Stay” is only allowed under “exceptional circumstances that are unavoidable.” These circumstances refer to cases where humanitarian considerations are necessary (for example, marriage to a Japanese national or inability to return home due to a serious illness), and merely “receiving a job offer from a Japanese company” does not qualify. This strict enforcement is designed to prevent undermining the foundation of the system, where individuals should undergo rigorous visa screening at Japanese embassies and consulates abroad, rather than entering the country through simplified procedures and then obtaining work qualifications domestically.

Therefore, when a company wishes to hire a foreign national on a “Short-Term Stay,” it must follow a two-step legal procedure. This procedure is strictly defined by law, and starting employment without adhering to it constitutes a serious legal violation.

First Step: Application for Certificate of Eligibility (COE)

First, the host company in Japan must apply for the “Certificate of Eligibility (COE)” on behalf of the foreign national. This is a procedure based on Article 7-2 of the Japanese Immigration Control Act, where the Minister of Justice pre-screens whether the foreign national’s planned activities in Japan meet the criteria for the visa status before entering the country. Having this certificate allows for expedited visa issuance later on. The application should be submitted to the regional immigration bureau that has jurisdiction over the company’s location. The review process usually takes between one to three months, so companies need to take this period into account when planning their hiring schedule.

Second Step: Visa Application and Entry into Japan

Once the Certificate of Eligibility (COE) is issued, the company sends it to the individual abroad. At this point, the individual is generally required to have left Japan. The individual then submits the certificate to the Japanese embassy or consulate in their home country to receive an official work visa (visa). With this new visa, they can land in Japan and, upon receiving their residence card at the airport, can legally begin employment. It is realistic to expect that the entire process, from job offer to the actual start of employment, will take at least three to four months.

The documents required for the Certificate of Eligibility (COE) application are similar to those for a change of visa status application, and the company’s business content and stability, as well as the relevance between the individual’s educational background, work history, and job duties, are rigorously reviewed.

Reference: Application for Certificate of Eligibility | Immigration Services Agency of Japan

Comparison of Procedures

The three recruitment methods we have explained so far are all legal pathways to employ foreigners in Japan, but they differ significantly in their legal approaches, the entities responsible for the procedures, the time required, and the points of caution that companies must bear in mind. Identifying the type of residence status the candidate holds from the outset and choosing the correct legal procedure to match is key to smooth hiring and compliance. The table below summarizes the main differences in procedures across the three scenarios.

Conclusion

For Japanese companies securing foreign talent, ensuring that their recruitment process complies with legal regulations is an absolute prerequisite. As detailed in this article, the legal procedures that a company must undertake vary fundamentally depending on the type of residence status held by the candidate. Accurately identifying the candidate’s legal status and executing the respective procedures without any excess or deficiency is the only path to managing a company’s legal risks and achieving smooth talent acquisition. Erroneous selection of procedures can lead not only to delays in the recruitment plan but also to serious compliance violations such as abetting illegal employment.

Monolith Law Office boasts a wealth of experience in providing legal services related to the application for work visas and complex immigration procedures for numerous clients within Japan. Our firm employs several English-speaking attorneys with foreign legal qualifications, enabling us to support international management teams and stakeholders abroad through clear and effective communication, thereby resolving legal challenges. If you are facing legal issues concerning the employment of foreign talent, please do not hesitate to consult with our firm.