On July 11, 2026, the Immigration Services Agency of Japan announced a major policy shift aimed at strengthening measures against illegal employment of foreign nationals. This development represents a critical risk management issue for all companies that currently employ or plan to employ foreign workers. This article, written from the perspective of a licensed immigration lawyer (gyoseishoshi), provides a detailed analysis of the policy changes and the actions companies should take.
- 1. Understanding the Crime of Facilitating Illegal Employment
- 2. Three Key Points of the New Policy
- 3. What is the “Zero Illegal Residents Plan”?
- 4. What Risks Do Companies Face?
- 5. Five Immediate Actions Companies Should Take
- 6. Key Points by Residence Status
- 7. Common Violation Cases
- 8. Conclusion: The Perspective Needed for Future Foreign Employment
1. Understanding the Crime of Facilitating Illegal Employment
Definition of the Crime
The crime of facilitating illegal employment is stipulated in Article 73-2 of the Immigration Control and Refugee Recognition Act. Specifically, the following acts constitute this offense:
- Employing foreign nationals without valid residence status
- Employing foreign nationals in work not permitted under their residence status
- Employing foreign nationals beyond the scope of permitted activities
- Brokering illegal employment
Previous Legal Gaps
Until now, the statutory penalty for facilitating illegal employment was “imprisonment for up to 3 years or a fine of up to 3 million yen.” However, in many industries, the disqualification criteria for business licenses specified “imprisonment or greater,” meaning that those who received only a fine could continue operating in the same industry.
This legal loophole allowed unscrupulous operators to repeat illegal employment practices.
2. Three Key Points of the New Policy
Point 1: Significant Increase in Statutory Penalties (Effective April 2026)
Starting in April 2027, the statutory penalties for facilitating illegal employment will be increased as follows:
Current:
- Imprisonment: Up to 3 years
- Fine: Up to 3 million yen
Revised:
- Imprisonment: Up to 5 years
- Fine: Up to 5 million yen
This change represents a substantial strengthening of criminal penalties for illegal employment.
Point 2: Addition to Disqualification Criteria
The Immigration Services Agency plans to request relevant ministries to add a history of conviction for facilitating illegal employment to the “disqualification criteria” for business licenses in each industry.
As a result, even if convicted only with a fine, offenders will be prohibited from operating in the same industry for a certain period. This is a significant departure from the previous standard of “imprisonment or greater.”
Point 3: Enhanced Enforcement in Specific Industries
The following industries are receiving particular attention:
- Automobile dismantling yards (Waste Management Act/Ministry of the Environment, Automobile Recycling Act/METI, Used Goods Business Act/National Police Agency)
- Construction
- Manufacturing
- Agriculture
- Food service
The Immigration Services Agency plans to conduct field surveys of industries with high rates of illegal employment and establish consultation forums with relevant ministries.
3. What is the “Zero Illegal Residents Plan”?
This policy is part of the “Zero Illegal Residents Plan” promoted by the Takaichi Cabinet. The plan is based on the following pillars:
- Strengthened crackdown on illegal residents
- Focused enforcement on industries that serve as hotbeds for illegal employment
- Stricter pursuit of employer responsibility
- Advancement of residence management systems
The government has made clear its policy of simultaneously promoting appropriate acceptance of foreign workers and eradicating illegal employment and illegal residence.
4. What Risks Do Companies Face?
Risk 1: Criminal Penalties
If convicted of facilitating illegal employment, corporations may face fines, while individuals (representatives or HR personnel) may face imprisonment or fines.
Risk 2: Cancellation or Suspension of Business Licenses
Under the new policy, even a fine-only conviction will result in prohibition from operating in the same industry for a certain period. This represents a critical risk to business continuity.
Risk 3: Loss of Social Credibility
If a company is caught for illegal employment, its name may be reported in the media. The long-term damage—including brand image deterioration, damaged relationships with business partners, and negative impact on recruitment—is immeasurable.
Risk 4: “I Didn’t Know” Is Not a Defense
The crime of facilitating illegal employment can be established even without intent or negligence on the part of the employer. In other words, excuses such as “I didn’t verify the residence status” or “I lacked knowledge” do not constitute legal defenses.
5. Five Immediate Actions Companies Should Take
Action 1: Thoroughly Verify Residence Cards
Always verify the original residence card at the time of hiring. Key points to check:
- Type of residence status (Is work permitted?)
- Period of stay (Is it still valid?)
- Work restrictions (listed on the back)
- Permission for activities outside the scope of residence status (for students, dependent family members, etc.)
As counterfeit cards are increasing, we recommend using the Immigration Services Agency’s “Residence Card Number Invalidation Information Inquiry” system.
Action 2: Establish a Periodic Residence Period Management System
Continuing to employ foreign nationals whose period of stay has expired constitutes facilitating illegal employment. The HR department should centrally manage residence periods and create a system that alerts staff three months before renewal is due.
Action 3: Accurately Understand Work Restrictions
Depending on the residence status, there may be restrictions on the industries and types of work permitted. For example:
- Engineer/Specialist in Humanities/International Services: Limited to professional work
- Specified Skilled Worker: Limited to 12 specific fields
- Student: In principle, up to 28 hours per week (requires permission for activities outside the scope of residence status)
Always verify that the planned work content is permitted under the foreign national’s residence status.
Action 4: Conduct Training for HR Personnel
It is essential that all staff involved in hiring foreign workers have basic knowledge of immigration law. Implement regular in-house training covering:
- Types of residence status and work restrictions
- How to read residence cards
- Risks of facilitating illegal employment
- Obligation to report to Hello Work (Public Employment Security Office)
Action 5: Establish a Consultation System with Specialists
Immigration law is frequently revised, and many cases require difficult practical judgments. We recommend establishing a system that allows coordination with specialists such as immigration lawyers (gyoseishoshi) or certified social insurance labor consultants.
6. Key Points by Residence Status
Engineer/Specialist in Humanities/International Services
This is the most common work visa, but unskilled labor is not permitted. For example, it is illegal to have a foreign national hired as an engineer perform assembly work in a factory.
Specified Skilled Worker
Limited to 16 specific fields (nursing care, building cleaning, manufacturing, etc.). Employment in other industries is not permitted.
Student
In principle, work is not permitted, but part-time work of up to 28 hours per week is allowed with permission for activities outside the scope of residence status. However, employment in businesses related to the sex industry is prohibited.
Dependent
This status is given to spouses and children of foreign nationals with work visas. Permission for activities outside the scope of residence status is required for employment, with a limit of 28 hours per week.
Permanent Resident / Spouse of Japanese National / Long-Term Resident
Foreign nationals with these statuses have no work restrictions. They can work in any industry or occupation.
7. Common Violation Cases
Case 1: Expired Period of Stay
Continuing employment without noticing that the period of stay has expired. This is caused by poor management by HR personnel.
Case 2: Activities Outside the Scope of Residence Status
Making students work more than 28 hours per week. Special attention is needed during busy periods.
Case 3: Non-Work Residence Status
Employing foreign nationals with temporary visitor (tourist visa) or dependent status (without permission for activities outside the scope of residence status).
Case 4: Mismatch in Job Content
Having foreign nationals with Engineer/Specialist in Humanities/International Services status perform unskilled labor. This occurs when the actual work differs from the job content at the time of hiring.
8. Conclusion: The Perspective Needed for Future Foreign Employment
The stricter penalties for facilitating illegal employment are tough for companies. However, this move is also an important measure that leads to protection of foreign workers’ rights and a healthier labor market.
Utilizing global talent is essential to the growth strategies of Japanese companies. That is precisely why it is necessary to build sustainable employment systems based on accurate knowledge and proper procedures.
The era when “I didn’t know” was an acceptable excuse is over. Now is the perfect opportunity to review your company’s compliance system for foreign employment.
Our office provides comprehensive support for foreign employment, including verification of residence status, proxy application for visas, and in-house training. We offer services tailored to your company’s needs.
If you have any questions or concerns, please feel free to contact us at any time.
Source: https://news.yahoo.co.jp/articles/314c00bef8730af18d2969aa5f706b042ff93e43
