■ Introduction: A New Era in Foreign Employment Compliance

On April 22, 2026, Ibaraki Prefecture announced the launch of a new “reporting system” that will officially take effect on May 11, 2026. Under this system, the prefecture will collect information from residents regarding businesses that illegally employ foreign nationals. When such information leads to a police arrest, the informant receives a reward of 10,000 yen per case. This initiative has drawn nationwide attention as one of the most proactive local government measures in Japan.

The system has faced criticism from some quarters, with concerns raised that it “may encourage discrimination against foreign nationals.” However, the prefecture has clearly emphasized that the scope of reporting is limited to business operators, and that personal attributes such as appearance or nationality, as well as daily-life matters like garbage disposal or noise complaints, fall outside the scope of this system.

In this article, as a certified administrative scrivener (gyoseishoshi) specializing in visa and status-of-residence applications, I will provide a detailed explanation of how this system affects foreign residents in Japan and Japanese employers — along with concrete compliance measures that should be implemented without delay.

■ 1. Overview and Background: Why Now?

◇ Fundamentals of the System
Ibaraki Prefecture hosts one of the largest foreign resident populations in Japan. Foreign workers are indispensable to the local economy, particularly in the manufacturing and agricultural sectors. At the same time, concerns have grown regarding unscrupulous employers who exploit foreign workers through illegal employment practices. The reporting system represents the prefecture’s response to this challenge.

To file a report, individuals must provide their full name, identification documents, and specific information regarding the alleged illegal employment. Anonymous reports will not be accepted — a safeguard against frivolous or malicious reporting.

◇ Criticism and the Prefecture’s Response
Shortly after the announcement, concerns were raised that the system might foster discrimination against foreign nationals. The prefecture has repeatedly clarified that the target of reporting is solely the employer engaging in illegal employment, not individual foreign residents.

From my perspective as a legal professional, the essence of this system is not to “crack down on foreign nationals,” but rather to “establish a fair and lawful employment environment.”

■ 2. What Constitutes “Illegal Employment”? Essential Knowledge of the Status-of-Residence System

◇ Three Categories of Illegal Employment
Under the Immigration Control and Refugee Recognition Act (hereinafter “Immigration Act”), illegal employment falls into three categories:

  1. Employment of persons with no lawful residence status
    This includes individuals who have overstayed their period of stay or are subject to a deportation order.
  2. Employment of persons without work authorization
    Certain statuses of residence, such as “Temporary Visitor” or “Cultural Activities,” do not permit employment.
  3. Employment beyond the authorized scope
    This includes cases where a foreign national with a status such as “Engineer / Specialist in Humanities / International Services” engages in unskilled labor outside the scope of their authorization, or where international students exceed the 28-hour-per-week limit under their “Permission to Engage in Activity Other Than That Permitted Under the Status of Residence Previously Granted.”

◇ The Third Category Demands Employers’ Closest Attention
In my practice, the majority of consultations concern the third category. Even employers acting in good faith — indeed, those who genuinely value their foreign employees — can inadvertently commit the offense of “promoting illegal employment.”

■ 3. Penalties Under Article 73-2: Ignorance Is No Defense

◇ The Offense of Promoting Illegal Employment
Article 73-2 of the Immigration Act prescribes penalties of imprisonment for up to three years, a fine of up to three million yen, or both. Corporate entities are also subject to dual liability provisions.

Critically, negligence alone can trigger criminal liability. Article 73-2, Paragraph 2 states that “this shall not apply where there is no negligence” — meaning that where negligence exists, punishment follows.

◇ “I Didn’t Know” Is Not a Valid Defense
In practical terms, failing to verify the residence card or relying solely on the applicant’s own statements is likely to be deemed negligent. Employers are expected to conduct thorough verification at the time of hiring, as well as ongoing management of residence status.

■ 4. Five Essential Compliance Measures for Employers

◇ Measure 1: Always Verify the Original Residence Card
Always inspect the original residence card at the time of hiring — photocopies or smartphone images are insufficient. The Immigration Services Agency’s online verification system for residence card numbers should also be used to confirm validity.

◇ Measure 2: Assess the Alignment Between Status of Residence and Job Duties
Each status of residence permits only specific types of work. For example, “Engineer / Specialist in Humanities / International Services” is limited to professional work and does not permit unskilled labor such as warehouse work or cleaning. Confirm this alignment before hiring.

◇ Measure 3: Centralize Management of Periods of Stay
While Excel-based tracking is acceptable, relying on human memory for multiple employees’ expiration dates is risky. Since extension applications may be filed up to three months before expiration, set automated alerts to trigger two to three months in advance.

◇ Measure 4: Rigorously Manage the 28-Hour Weekly Limit
International students and dependents require “Permission to Engage in Activity Other Than That Permitted Under the Status of Residence Previously Granted” in order to work, and, as a rule, may not exceed 28 hours per week. For those holding multiple part-time positions, employers should not rely solely on self-declaration but should also monitor aggregated working hours.

◇ Measure 5: Implement Re-verification Procedures for Job Changes
A hire that was compliant at the outset may become non-compliant if the employee is reassigned to unskilled work. Build a re-verification process into HR protocols for every job change, transfer, or reassignment.

■ 5. For Foreign Residents in Japan: Protecting Your Status of Residence

◇ Know the Scope of Activities Permitted Under Your Status
Begin by precisely understanding what activities are authorized under the status of residence indicated on your residence card. The Immigration Services Agency’s official website and the “Designation Certificate” attached to certain statuses are authoritative sources.

◇ Never Miss the Expiration of Your Period of Stay
An expired period of stay immediately results in “illegal overstay.” Extension applications may be filed up to three months before expiration — act early.

◇ Consult a Professional When Your Job Content Changes
If your duties change significantly due to job change or reassignment, consult a professional to determine whether your current status remains appropriate, or whether you should obtain a “Certificate of Authorized Employment” or apply for a change of status of residence.

■ 6. The Broader Impact: Defensive and Strategic Perspectives

◇ The Defensive Dimension: Strengthening Compliance
With the introduction of the reporting system, employment practices that may have previously escaped scrutiny will come under closer examination. Employers must adopt more rigorous management systems than ever before.

◇ The Strategic Dimension: Competitive Advantage for Compliant Employers
For employers operating lawfully, the elimination of unscrupulous competitors who rely on illegal cost-cutting creates a healthier competitive environment. Building a robust compliance framework is also essential for becoming an employer of choice among foreign talent.

■ 7. The Benefits of Consulting an Administrative Scrivener

As legal specialists in immigration matters, certified administrative scriveners (gyoseishoshi) offering visa and status-of-residence services provide the following support:

  • Pre-hire assessment of status-of-residence alignment
  • Comprehensive audits of the residence status of all foreign employees
  • Representation in applications to change or extend status of residence
  • Assistance in obtaining the Certificate of Authorized Employment
  • Internal compliance training for HR and management

For companies employing multiple foreign nationals, outsourcing residence-status management to a specialist offers substantial benefits in both risk mitigation and operational efficiency.

■ 8. Conclusion: Proper Employment Management Protects the Future of Both Companies and Foreign Workers

Ibaraki Prefecture’s new reporting system marks a significant moment in the evolution of foreign employment in Japan. However, its true purpose lies not in “policing foreign nationals” but in “establishing a fair and lawful employment environment.”

For foreign residents and employers alike, accurate knowledge and proper management systems are the most effective safeguards — enabling foreign workers to work with peace of mind and employers to hire with confidence.

“Are we truly compliant?” “Is this employment arrangement lawful?” — if any uncertainty arises, consult a specialist without delay. Once problems surface, recovery can be difficult or impossible.

Our office specializes in visa and status-of-residence applications, and we are fully committed to supporting foreign residents in Japan and Japanese employers who hire them. Please feel free to contact us for any inquiry, no matter how small.

▼ Source Article
https://news.yahoo.co.jp/articles/95b086acccfd540fadf74a865ebf4dafcdf8dbd8

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