Risks of Illegal Employment Practices and How to Prevent Them | A Guide for Employers in Japan

For companies hiring foreign nationals in Japan, the crime of promoting illegal employment is never someone else’s problem. Employers who allow foreign workers to engage in unauthorized employment — even unknowingly — may face imprisonment of up to three years, a fine of up to 3 million yen, or both. This article outlines five major risks and the concrete preventive measures every employer should have in place.

When Does “Promoting Illegal Employment” Apply?

This offense applies in the following cases:

• Hiring or referring a foreign national while knowing that the person is illegally staying or working in Japan
• Hiring or referring a foreign national without knowing, but failing to conduct proper verification of their status

Five Key Risks and Preventive Measures

① Failure to Confirm Residence Status and Work Restrictions

Risk: Hiring without adequately checking the information on the residence card.

Preventive Measure: Always check the original residence card at the time of hiring, verifying the residence status, period of stay, and any work restrictions. Keep copies of both sides of the card and maintain a tracking sheet to monitor expiration and renewal dates.

② Overlooking the Work Permission Stamp

Risk: Hiring a student or dependent — whose status does not permit employment — without confirming they hold the proper permission for outside activities.

Preventive Measure: Always check the “Permission for Activities Outside Status” section on the back of the residence card and confirm a comprehensive permit（包括的資格外活動許可）has been given. Note that individual permits (個別的資格外活動許可） allow work only for the specifically approved activity. If the card states “Not permitted to work” and no outside permission is present, instruct the individual to obtain proper permission before starting work.

③ Insufficient Management of Working Hour Restrictions

Risk: Failing to understand or enforce the 28-hour weekly limit for those with comprehensive permits, resulting in the employee’s total work hours exceeding the legal cap.

Preventive Measure: When employing a foreign national under a comprehensive permission to engage in activities outside the scope of their status of residence, prepare a written pledge confirming that the foreign national will comply with all relevant laws and regulations, and keep it on file. Managing weekly working hours using an attendance system or shift schedule is also a must.

④ Continued Employment After the Period of Stay Has Expired

Risk: Allowing a foreign employee to continue working without realizing their period of stay has expired.

Preventive Measure: Manage expiration dates via a tracking sheet. During visa renewal processing, the period of stay may technically expire — however, the validity of the residence card can be checked on the Immigration Services Agency website.

Immigration Services Agency — Residence Card Validity Check:
https://lapse-immi.moj.go.jp/html/top.html

⑤ Inadequate Internal Management Due to Reliance on On-Site Staff

Risk: Violations go unnoticed due to poor information-sharing between HR and on-site departments.

Preventive Measure: Establish written internal rules for employing foreign nationals and designate a responsible manager. Regular training and compliance checks across the organization help reduce legal exposure.

“I didn’t know” is not a valid defense when it comes to promoting illegal employment. Regardless of whether the employee is full-time or part-time, companies must establish proper verification procedures and a continuous management system to prevent risk.

Need help building a compliant foreign employment system? TSUBASA is ready to support you.