Key Risks for Employers Hiring International Students

A recent arrest in Okinawa has once again highlighted the serious legal risks surrounding the employment of foreign nationals in Japan.

According to media reports, a Nepalese national holding a student visa was arrested on suspicion of engaging in “unauthorized employment” after allegedly continuing to work at a restaurant in Naha despite no longer attending school.

Many employers may initially think:

  • “Wasn’t the person just working part-time?”
  • “Isn’t this mainly the individual’s responsibility?”

However, under Japanese immigration law, companies that employ foreign nationals may also face significant legal liability if proper checks are not conducted.

In recent years, Japanese immigration authorities have intensified enforcement regarding foreign worker compliance. As a result, explanations such as:

  • “We didn’t know,” or
  • “The employee told us everything was fine”

are often no longer sufficient defenses.

In this article, we explain:

  • What “unauthorized employment” means under Japanese law
  • The work limitations for international students
  • Legal risks for employers
  • Common compliance mistakes
  • Practical steps companies should take to avoid immigration violations

What Is “Unauthorized Employment” in Japan?

“Unauthorized employment” refers to engaging in work activities that are not permitted under a person’s current residence status (visa status) in Japan.

For example, individuals holding a “Student” residence status are, by default, permitted to stay in Japan for educational purposes only. Employment is generally prohibited unless additional permission is granted.

Many international students obtain what is called a “Permission to Engage in Activity Other Than That Permitted” (commonly referred to as work permission for students), which allows limited part-time employment.

However, this permission is subject to strict conditions.

Basic Rules for International Students Working Part-Time

International students in Japan are generally allowed to work only if:

  • They obtain proper permission from Immigration Services Agency
  • They work no more than 28 hours per week during school terms
  • They remain actively enrolled in school
  • Their primary activity continues to be studying
  • The work is not related to adult entertainment businesses

If the student is no longer genuinely engaged in study activities, the basis for the student residence status may effectively disappear.

In the Okinawa case, media reports stated that the individual had been expelled from vocational school prior to the alleged employment period.

Once a student is expelled, withdraws, or otherwise ceases educational activities, continuing to work may constitute unauthorized employment under the Immigration Control and Refugee Recognition Act.

Employers May Also Face Criminal Liability

This point is critically important.

Many companies mistakenly assume that only the foreign national faces legal consequences. In reality, employers themselves may also be penalized under Japanese law.

What Is the Crime of Facilitating Illegal Employment?

Under Japan’s Immigration Control Act, employers who knowingly hire unauthorized workers — or fail to conduct adequate confirmation procedures — may be subject to criminal penalties.

Potential penalties include:

  • Imprisonment for up to three years
  • A fine of up to JPY 3 million
  • Or both

In addition to legal penalties, companies may also face:

  • Public reputational damage
  • Loss of trust from clients and business partners
  • Increased immigration scrutiny
  • Difficulty sponsoring future visas
  • Negative impacts on recruitment and brand credibility

For many businesses, the operational and reputational consequences can be far more damaging than the monetary penalties themselves.

Simply Checking a Residence Card Is Not Enough

One of the most common misconceptions among employers is:

“We checked the residence card, so we’re compliant.”

Unfortunately, compliance requires much more than a quick visual inspection.

In practice, there are many situations where violations may still exist, including:

  • Expired residence status
  • Lack of work permission
  • School expulsion or withdrawal
  • Poor attendance leading to immigration issues
  • No actual educational activity
  • Unauthorized changes in affiliation

A residence card alone does not automatically guarantee lawful work eligibility.

Especially when employing international students, employers should confirm whether the student is genuinely attending school and maintaining lawful status.

Immigration Violations Involving Foreign Workers Are Increasing

As Japan continues to face labor shortages, the number of foreign workers has grown significantly across industries such as:

  • Restaurants and hospitality
  • Nursing care
  • Construction
  • Agriculture
  • Convenience stores
  • Tourism and hotel operations

At the same time, many employers still lack sufficient understanding of Japan’s immigration compliance requirements.

Below are several common examples frequently seen in practice.

Case 1: Exceeding the 28-Hour Weekly Limit

A very common explanation from employers is:

“We assumed the employee was managing their own hours.”

However, if a student works multiple part-time jobs, the combined working hours may exceed the legal limit, resulting in a violation.

Even if the employer was unaware, legal risk may still arise.

Case 2: Continued Employment After School Withdrawal or Expulsion

This closely resembles the recent Okinawa case.

Once a student leaves school, the legal basis for the “Student” residence status may no longer exist.

However, many companies fail to notice this change because the employee never reports it.

Case 3: Working After Visa Renewal Denial or Expiration

Another common issue is continued employment after visa expiration or denial of status renewal.

This frequently occurs when companies fail to maintain proper monitoring systems for residence expiration dates.

Why Many Companies Fail to Detect These Problems

The answer is simple:

Japanese immigration regulations are highly complex.

There are many different residence statuses, including:

  • Engineer / Specialist in Humanities / International Services
  • Specified Skilled Worker
  • Technical Intern Training
  • Student
  • Dependent
  • Permanent Resident
  • Long-Term Resident

Each status has different work permissions and restrictions.

In addition, companies must monitor:

  • Visa renewal status
  • School enrollment status
  • Employment changes
  • Actual activity consistency
  • Work permission status

For many HR departments and small businesses, handling these issues internally without expert support can be extremely difficult.

What Employers Should Do Immediately

To reduce immigration compliance risks, companies should implement at least the following measures.

1. Regularly Check Residence Status Documents

Checking documents only at hiring is insufficient.

Companies should establish ongoing monitoring procedures for expiration dates and status changes.

2. Confirm School Enrollment for Student Workers

For international students, employers should verify whether the individual is still actively enrolled.

Some companies even request proof of attendance or enrollment certificates on a regular basis.

3. Properly Monitor Working Hours

Employers should not only manage internal shift schedules but also ask whether the employee works for other employers.

4. Consult Immigration Professionals Before Hiring

The safest approach is to consult immigration professionals, such as licensed Gyoseishoshi (Administrative Scriveners), before hiring foreign nationals.

This is especially important when:

  • Hiring foreign workers for the first time
  • Employing international students
  • Handling complex residence statuses
  • Sponsoring visa changes
  • Hiring dependents or specified skilled workers

“We Didn’t Know” Is No Longer a Sufficient Defense

Foreign employment in Japan will continue to expand.

At the same time, immigration enforcement and employer accountability are becoming increasingly strict.

Japanese immigration authorities now place strong emphasis on whether employers established appropriate compliance systems and conducted reasonable verification procedures.

In other words, waiting until a problem occurs is already too late.

This is particularly important for small and medium-sized businesses, where employers often say:

  • “We urgently needed staff,” or
  • “We relied entirely on a staffing agency.”

However, ultimate legal responsibility generally remains with the employer.

Hiring foreign nationals is not simply about recruitment.

Proper immigration compliance management is now an essential part of lawful employment practices in Japan.

The Benefits of Working With an Immigration Professional

Foreign employment compliance requires more than basic HR management.

It involves immigration law, residence status analysis, renewal monitoring, and legal risk management.

By consulting a licensed administrative scrivener specializing in immigration matters, companies can receive support with:

  • Pre-employment eligibility checks
  • Residence status verification
  • Visa renewal monitoring
  • Change-of-status applications
  • Illegal employment risk prevention
  • Internal compliance system development

For businesses employing foreign nationals on an ongoing basis, professional support is becoming increasingly important.

The best time to address immigration risk is before problems occur.

Conclusion

The recent Okinawa case should not be viewed as an isolated incident.

Both foreign nationals and employers may face serious legal consequences if immigration compliance requirements are overlooked.

Particularly when employing international students, companies must verify not only whether work permission exists, but also:

  • Current enrollment status
  • Actual educational activities
  • Working hour limitations

Foreign workers can be a tremendous asset to Japanese businesses when employed properly.

However, inadequate understanding of immigration regulations can quickly become a major legal and business risk.

That is why careful compliance management before and during employment is essential.

If your company is unsure about:

  • Whether a foreign national is legally allowed to work
  • How to properly hire international students
  • Whether your current compliance procedures are sufficient

it is strongly advisable to seek professional guidance before issues arise.

In today’s regulatory environment, foreign employment compliance cannot be handled casually.

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