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Expanding Acceptance of Foreign Workers

HR Management

2021.08.05

Author: Gosuke Kashiwada, Attorney at Law

1. The revised Immigration Law (the law for management of entries and exits from the country and recognition of refugees) was enforced from April 1, 2019. The background to the formation of the revised law is the serious problem of a labor shortage caused by a low birthrate and aging society. As a result of the revised Immigration Law it is hoped that small and medium sized companies in particular will be able to more easily hire foreign workers. In this article we will examine the points of the revised Immigration Law and employment of foreign workers.

2. One big point of the revised Immigration Law is the establishment of “Specified Skilled Worker No. 1” as a status of residence. As you are aware, for a foreigner to reside in Japan a “status of residence” is needed and, depending on the category of the status of residence, the term of residence, and activities (work) that can be done during the status of residence are decided. In the past, due to the status of residence system, the occupations, term, etc., were limited. Although the introduction of the “system for training of skilled foreign workers” has led to an expansion of acceptance of foreign workers the “Specified Skilled Worker No. 1” makes it possible to work in more industries and the residence term is up to 5 years and a change of work is also possible (also, even after passage of 5 years, if certain conditions are met, it is possible to reside with family for an indefinite period as “Specified Skilled Worker No. 2”). By establishment of the “Specified Skilled Worker No. 1”, it is expected that the opportunity to employ a foreign worker will greatly increase.

3.  Here we will simply explain the “Specified Skilled Worker No. 1” status of residence (the details can be seen on the website of the Ministry of Justice).

First, the occupations that can be engaged in are quite broad, consisting of 14 categories including caregiving, manufacturing, housing construction, lodging, food service industry, etc..

Although it is necessary to pass a test, etc., to confirm a certain level of skill and Japanese ability, if the person has already been residing as a technical trainee for 3 years (a person completing technical trainee 2) the test will be waived.

Wages must be paid at the same or higher level as for a Japanese person in the same way as for a technical trainee.

4.  In the case where an employer hires a foreign worker, what does the employer need to be careful about under the law?

First, even if it is a foreign worker (including a technical trainee), the Labor Standards Act, etc., and other labor regulations and the regulations relating to social insurance will apply in the same way as for a Japanese worker. In particular, it is necessary to take care about any irregularities relating to industrial accident insurance and social insurance (in the case of a worker from a social insurance treaty country the social insurance may be waived).

Next, the foreign worker is only allowed to work within the scope of the status of residence and the employer could also be penalized for any illegal work (up to three years of imprisonment, and 3 million yen fine). For this purpose, it is necessary to properly manage renewals of the status of residence. Also, in the case of students, etc., the work time is limited to 28 hours per week and any work in excess of that is illegal work so again proper management of the work time is needed depending on the status of residence.

Additionally, a report to Hello Work is required upon each hiring or dismissal of a foreign worker. The report is also necessary in the case of a part-timer or other non-regular employment.

Finally, in the case of a “Specified Skilled Worker No. 1” status of residence, in order for the foreign worker to live in Japan, which is an unaccustomed country for him/her, it is necessary to decide a plan to assist with finding a home, etc., and implement that plan.

5. Our office is also seeing an increase in inquiries for foreign workers. The above legal points to be aware of are important, but we also hear positive evaluations of the work ethics of foreign workers from employers. We think that the opportunities to hire foreign workers will continue to increase.

  • We deliver valuable and useful information on matters relating to corporate law and investment mainly from our seven offices; Fukuoka, Tokyo, Shanghai, Hong Kong, Singapore, Hanoi and Ho Chi Minh.
  • This article was drafted in the past based on the laws and cases applicable at that time. However, the laws and/or regulations may have been amended since then. Please note that we do not guarantee the legal accuracy of this article. Please contact us for the latest laws/regulations information.

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