Author：Attorney Moe Suzuki

Although many companies accept technical intern trainees, the Technical Intern Training Program (TITP) is scheduled to be reviewed in the future. In this article, we would like to briefly explain the Employment for Skill Development (ESD) Program which is introduced as a part of this review.

1　Background and History of the Review

The TITP was introduced in 1993, with the purpose of contributing to the economic development of developing countries by having the technical intern trainees take back the skills and knowledge they have learned in Japan and use them in their home countries. It is explicitly stated that the program shall not be used as a means to secure/adjust the supply and demand of labor (Articles 1 and 3, paragraph 2 of Act on Proper Technical Intern Training and Protection of Technical Intern Trainees).

However, due to a severe labor shortage, the program has essentially been used as a means to secure labor/human resources, leading to problems such as low wages, long working hours, and unfair working conditions. Additionally, since transfers were in principle not permitted, some trainees resorted to disappearing from their positions.

In light of these issues, the government began reviewing the TITP, and in March 2024, a cabinet decision was made to establish the ESD Program which was subsequently passed and enacted at the plenary session of the House of Councilors in June 2024.

2　Details of the Review

With the introduction of the ESD Program, the following major changes are expected:

◆ Change in the program’s purpose

As mentioned above, the TITP cannot be used as a means of securing labor/human resources. However, the purpose of the ESD Program has been changed to “develop human resources with skills equivalent to the Specified Skilled Worker (SSW) (i) standard and secure human resources in the relevant field”. This represents an open acknowledgment of the ESD Program’s role in securing labor/human resources.

◆ Relationship with the Specified Skilled Worker System

Currently, foreign nationals with certain skills in designated industries can obtain an SSW residence status. There have been many cases where technical intern trainees who have completed TITP, continue to work under the SSW (i) residence status.

However, since technical intern trainees are, in principle, expected to return to their home countries, the industries eligible for TITP and those eligible for the SSW system do not necessarily align, making it difficult for technical intern trainees to obtain the SSW residence status in some fields.

Under the ESD Program, after completing the training and employment period, the technical intern trainees are expected to obtain the SSW (i) residence status. Consequently, the industries covered by the ESD Program and the SSW(i) system are generally expected to align.

◆ Protection of Rights of Labors

Under the current system, transfers are prohibited, in principle. However, under the new system, in addition to cases of unavoidable circumstances, transfers at the individual’s own request will be permitted, subject to certain conditions (such as having worked for a specified period, passing a skills certification test or Japanese language proficiency test, etc.).

Additionally, to build a framework for the protection of the rights of laborers, the government intends to impose stricter requirements for the approval of training and employment plans, and the appointment of external auditors by supervising organizations.

3　Conclusion

The revised system is expected to come into effect within three (3) years from the date of promulgation, and the system is expected to be implemented/changed within approximately the same timeframe.

In addition to the points mentioned above, there are various other changes to the system, so companies that are currently accepting technical intern trainees or are considering to accept foreign workers in the relevant fields in the future should closely monitor the changes in the system.