Introduction

In June 2026, farm operators in Toyokawa City, Aichi Prefecture were arrested on suspicion of facilitating illegal employment. This case serves as an important reminder for business owners and HR managers who employ foreign nationals, as well as for foreign residents in Japan, to reconsider the relationship between residency status and employment activities.

This article provides a clear explanation of the case details, the fact that “home-based work” or “remote work” can still constitute illegal employment, the relationship between residency status and work activities, and key points that both employers and foreign nationals should be aware of.

Case Overview: “They’re Not Employees Because It’s Home-Based Work” Does Not Hold Up

According to reports, four individuals, including the representative of a farm in Toyokawa City, Aichi Prefecture that cultivates perilla leaves, were arrested for allegedly allowing three Vietnamese nationals to engage in side jobs that were not permitted under their residency status.

The farm had recruited part-time workers through social media and had the Vietnamese nationals perform packaging work for perilla leaves. During questioning, the farm representative denied the charges, stating “the Vietnamese doing home-based work are not employees.” Meanwhile, all three Vietnamese nationals have reportedly admitted to the charges.

This case demonstrates that formal distinctions such as “not working at company facilities” or “treating it as home-based work” have no legal significance.

What Constitutes “Employment”? Location Is Irrelevant

This is where many people have a misconception. “Employment” under the Immigration Control Act refers to any activity that generates compensation. In other words:

・Whether you work at the company office
・Whether you work at a factory or store
・Whether you work from home (home-based work)
・Whether it’s remote work

These work arrangements and locations are not essential factors in determining whether something constitutes “employment.” What matters is “whether there is an actual provision of labor services accompanied by compensation.”

If you have someone perform work and pay them compensation in return, that constitutes legitimate “employment.” The criterion that determines legality is whether the work content falls within the scope permitted by the foreign national’s residency status.

The Relationship Between Residency Status and Employment: Permitted Activities Vary by Status

All foreign nationals residing in Japan must hold some form of residency status. There are approximately 30 types of residency statuses, each with legally defined activities that can be performed in Japan.

【Examples of Residency Statuses That Permit Employment】
・”Engineer/Specialist in Humanities/International Services”: White-collar professional work
・”Skilled Labor”: Work requiring specific skills such as chefs, construction craftsmen
・”Specified Skilled Worker”: Work requiring certain skills in labor-shortage sectors
・”Technical Intern Training”: Skill acquisition activities in specific occupations and tasks

【Examples of Residency Statuses With Employment Restrictions】
・”Student”: Employment is originally not permitted. However, with permission for activities outside the status of residence, up to 28 hours per week is allowed (excluding adult entertainment businesses)
・”Dependent”: Employment is originally not permitted. With permission, up to 28 hours per week is allowed

【Residency Statuses Without Activity Restrictions】
・”Permanent Resident,” “Spouse or Child of Japanese National,” “Spouse or Child of Permanent Resident,” “Long-Term Resident”: No employment restrictions

The problem arises when, for example, someone holding “Engineer/Specialist in Humanities/International Services” status engages in unskilled labor (packaging work, manufacturing line work, etc.). This residency status permits only specialized, technical work; unskilled labor is outside its scope.

In this case as well, while the specific residency statuses of the Vietnamese nationals were not disclosed in the reports, the reference to “side jobs originally prohibited under their residency status” suggests they were likely students who exceeded the scope of their permission for activities outside their status, or were engaged in work not permitted under their original residency status.

Three Common Misconceptions Among Companies and Business Owners

Many companies and business owners have the following misconceptions regarding foreign employment:

【Misconception 1】”It’s fine because they don’t come to the company”
→ Whether it’s remote work or home-based work, if there’s labor provision accompanied by compensation, it’s employment.

【Misconception 2】”It’s fine because we have a contractor agreement or treat it as home-based work”
→ What matters is not the name or form of the contract, but the actual circumstances. If someone is substantially providing labor under direction and receiving compensation, it will be judged as employment activity.

【Misconception 3】”It’s fine to take it lightly because they’re part-time or short-term”
→ Regardless of employment duration or employment type (full-time, part-time, casual), the obligation to verify residency status is the same.

These misconceptions can lead to criminal acts such as facilitating illegal employment, as seen in this case.

Crime of Facilitating Illegal Employment: Corporate Responsibility Is Serious

When a foreign national engages in illegal employment, not only the foreign national but also the employer faces criminal liability. This is called the “crime of facilitating illegal employment.”

Article 73-2 of the Immigration Control Act penalizes the following acts:
・Causing someone to engage in illegal employment activities
・Placing someone under one’s control for the purpose of illegal employment activities
・As a business, causing foreign nationals to engage in illegal employment activities or arranging such activities

The penalty is defined as “imprisonment for not more than three years or a fine of not more than 3 million yen (or both).”

The excuse “I didn’t know” does not work. If there was negligence such as failing to check the residence card at the time of hiring or not understanding the content of the residency status, that itself becomes the company’s fault.

In addition to criminal penalties, there are also risks such as:
・Loss of corporate social credibility
・Loss of trust from business partners and customers
・For licensed businesses, cancellation or non-renewal of permits
・Cancellation of excellent company certification (if receiving benefits for Specified Skilled Workers, etc.)

Five Checkpoints Companies Should Implement Immediately

Companies employing foreign nationals or considering such employment must confirm and implement the following points:

【1】Verify the Original Residence Card
Always verify the original residence card when hiring. Copies alone may be forged. You can also verify whether the card is valid using the Immigration Services Agency’s “Residence Card Number Invalidation Information Inquiry” website.

【2】Confirm Residency Status Type and Employment Eligibility
The residence card has a “Status of Residence” column. Check what kind of employment is permitted under that residency status. If unsure, we recommend consulting with a specialist or immigration services.

【3】Confirm Existence and Conditions of Permission for Activities Outside Status
For residency statuses such as “Student” or “Dependent,” certain employment is possible if permission for activities outside the status has been obtained. Check the back of the residence card for notations such as “Permission: Up to 28 hours per week in principle, excluding adult entertainment businesses.”

【4】Check Consistency Between Job Content and Residency Status
Verify that the job duties for which you are hiring fall within the scope of activities permitted by that person’s residency status. For example, when hiring under “Engineer/Specialist in Humanities/International Services,” the work must be specialized, not simple tasks.

【5】Regularly Verify Residence Period Expiration
Continuing to employ someone after their residence period has expired constitutes facilitating illegal employment. Create a management ledger for residence periods and identify renewal times in advance.

To Foreign Residents in Japan: Correctly Understand Your Residency Status

It is extremely important for foreign residents to correctly understand the activities permitted under their residency status.

【For International Students】
Even with permission for activities outside your status, you cannot work more than 28 hours per week (40 hours per week during long vacations). Also, work related to adult entertainment businesses is prohibited. If you have multiple part-time jobs, be careful that the total hours remain within the limit.

【For Those With Work-Related Statuses Like Engineer/Specialist in Humanities/International Services】
Only specialized work corresponding to that status is permitted. Even if instructed by your company, simple tasks or manufacturing line work are generally not permitted. If you have doubts about your job content, consult with your employer or a specialist.

【For Those on Dependent Status】
Those residing in Japan as spouses or children cannot work without permission for activities outside their status. Even with permission, the limit is 28 hours per week.

Risks of Illegal Employment:
・Renewal of residency status may be denied
・Possibility of residency status cancellation
・In the worst case, deportation (forced departure)
・Possibility of a period during which re-entry is not permitted

Even if you receive an attractive job offer, first check your residency status and carefully determine whether it falls within the permitted scope.

The Pitfall of Social Media Recruitment: Caution Needed Precisely Because It’s Casual

Another noteworthy point in this case is that part-time workers were recruited through social media.

In recent years, job recruitment via social media has become common, but precisely because the recruitment method is casual, legal compliance tends to be neglected.

・”Just need a little help”
・”Because it’s simple work”
・”Just for a few hours”

Recruitment and applications made with such casual attitudes can result in illegal employment. Both recruiters and applicants need to understand that formal employment relationships arise even with social media and must follow appropriate procedures.

For Appropriate Foreign Employment: Consult with Specialists

The residency status system is complex and requires specialized knowledge. Self-judgment based on “this should be fine” can sometimes lead to irreversible situations.

【Cases When You Should Consult a Specialist】
・First time employing foreign nationals
・Difficult to determine whether job content corresponds to residency status
・Need to change or renew residency status
・Concerns about the residency status of foreign nationals already employed

Administrative scriveners (especially those specializing in immigration matters) provide support for residency status applications and consulting on foreign employment. By receiving appropriate advice in advance, you can significantly reduce the risk of legal violations.

Conclusion: “I Didn’t Know” Is Not an Excuse

The case in Aichi Prefecture contains many lessons.

・”Home-based work” or “remote work” with compensation is still employment
・Not the work location or employment type, but consistency with residency status is important
・Corporate “I didn’t know” is not an excuse
・Illegal employment is a serious risk for both employers and foreign nationals

Utilizing foreign talent will become increasingly important in Japanese society as labor shortages become more severe. However, employment that does not comply with laws is not sustainable and is negative for society as a whole.

By having correct knowledge and following appropriate procedures, companies can confidently welcome talented personnel, and foreign nationals can work and live in Japan with peace of mind.

Rather than treating this case as someone else’s problem, why not review your own or your company’s foreign employment practices? If you have any concerns, we recommend consulting with a specialist early.

Reference article: https://news.yahoo.co.jp/articles/138ef59fdc188f3359274f19594ee0688b338a8b

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