Illegal Employment in Japan: Risks and Obligations for Employers

Employers who fail to verify a foreign national’s status of residence may face prosecution for facilitating illegal employment under Article 73-2 of the Immigration Control and Refugee Recognition Act (ICRRA), even if they did not know the work was illegal. The penalty is imprisonment for up to three years, a fine of up to ¥3 million, or both, and it is scheduled to rise to imprisonment for up to five years, a fine of up to ¥5 million, or both from April 1, 2027.

What Is the Crime of Facilitating Illegal Employment?

The crime of facilitating illegal employment (fuho shuro jocho zai) punishes those who, in connection with their business, cause a foreign national to engage in illegal work, and those who broker such work (ICRRA, Article 73-2, Paragraph 1).

Three Types of Illegal Employment

The Immigration Services Agency of Japan (ISA) explains that illegal employment arises in the following three situations (ISA leaflet for employers, in Japanese):

1. Work by people staying illegally or subject to deportation

For example, people who entered Japan illegally, people whose period of stay has expired (overstayers), and people whose deportation has already been decided.

2. Work without permission from the ISA

For example, people who entered Japan for short-term purposes such as tourism, or international students and refugee status applicants, who work without permission. Those staying with the status of Student, Trainee, Dependent, Cultural Activities, or Temporary Visitor cannot work unless they have obtained permission to engage in an activity other than that permitted under the status of residence.

3. Work beyond the scope permitted by the ISA

Even with a status that allows work, working beyond the permitted scope is illegal employment. For example, a person permitted to work as a foreign-cuisine cook or a language school teacher who works as a manual laborer at a factory, or an international student who works more hours than permitted.

Acts That Are Punished

The crime targets those who cause a foreign national to work illegally, not the foreign worker. Article 73-2, Paragraph 1 of the ICRRA punishes:

• A person who, in connection with business activities, has caused a foreign national to engage in illegal work
• A person who has placed a foreign national under their control in order to have them engage in illegal work
• A person who, as a business, has brokered either of the above

If a person who commits, solicits, or assists these acts is a foreign national, that person is also subject to deportation (ICRRA, Article 24, Item 3-4).

Penalties

Under ICRRA Article 73-2, Paragraph 1, the penalty for facilitating illegal employment is:

Imprisonment for up to three years, a fine of up to ¥3 million, or both

Under the amendment made by Act No. 60 of 2024, the penalty is scheduled to rise to imprisonment for up to five years, a fine of up to ¥5 million, or both from April 1, 2027 (amended ICRRA, Article 73-2, Paragraph 1).

”I Didn’t Know” Is No Defense Without Due Care

Under Article 73-2, Paragraph 2, a person who caused a foreign national to work cannot escape punishment on the ground that they did not know that the work was outside the worker’s status of residence, that the worker had no permission for activities outside their status, or that the worker was staying illegally. This does not apply if the person was not negligent.

The ISA explains that because the residence card makes it very easy to determine a person’s status of residence and whether they have permission for activities outside their status, an employer who did not know that a worker was working illegally still cannot escape punishment if they were negligent, for example by not checking the status of residence (ISA, Q&A on the residence management system, Q117, in Japanese).

Related Penalties

In addition to the crime of facilitating illegal employment, the Act on the Comprehensive Promotion of Labor Policies also sets a penalty related to employing foreign nationals.

Violation	Penalty	Legal basis
Facilitating illegal employment (employment or brokering)	Up to three years’ imprisonment and/or up to ¥3 million (scheduled to become up to five years and/or ¥5 million from April 1, 2027)	ICRRA Art. 73-2
Failure to file, or false filing of, the foreign worker employment status report	Fine of up to ¥300,000	Act on the Comprehensive Promotion of Labor Policies, Art. 28(1) and Art. 50

Foreign nationals who work outside their status without permission are themselves subject to criminal penalties (ICRRA Art. 73, or Art. 70(1)(iv) where they are clearly found to be engaged exclusively in such work). In the latter case, they are also subject to deportation (ICRRA Art. 24(iv)(a)).

Verification Measures for Employers

At hiring, check the residence card to confirm the person can work; during employment, track the period of stay and the scope of work; and report hiring and departures to Hello Work.

At the Time of Hiring

1. Check the residence card (see “How to Check a Residence Card” below)

Ask the prospective employee to present their residence card and confirm whether they can work. The ISA states that, except for special permanent residents, people who do not hold a residence card generally cannot work. However, people whose passport states that a residence card will be issued later, people granted a period of stay of three months or less, and people granted a status such as Diplomat or Official may be able to work without a residence card; for them, check the passport or similar documents (same leaflet).

The ISA notes that holding a valid residence card does not by itself mean there is no problem with employment. In addition to checking identity against the photo, employers should particularly check the status of residence, the expiration date of the period of stay, the employment restriction, and whether permission for activities outside the status has been granted (same Q&A, Q113).

2. Use the Certificate of Authorized Employment

The Certificate of Authorized Employment (shuro shikaku shomeisho, ICRRA Art. 19-2) is a document in which the Commissioner of the ISA certifies the income-generating or remunerated activities a foreign national may engage in. It can be useful, for example, when hiring a foreign national who has changed employers, to confirm that the intended work falls within their status of residence (ISA page on the certificate, in Japanese).

3. Check that the status of residence matches the job duties

Confirm that the status of residence on the residence card matches the work the employee will actually do. For example, having a holder of the Engineer/Specialist in Humanities/International Services status perform work that does not fall under that status is illegal employment.

During Employment

1. Track the period of stay

Keep track of the expiration date of the period of stay on each foreign employee’s residence card, and encourage employees to start renewal procedures well in advance. Having an employee work after their period of stay has expired without a renewal application may lead to liability for facilitating illegal employment.

If an employee applied to renew or change their status before the period of stay expired, they may remain in Japan under their current status even if no decision has been made by the expiration date, until the decision is made or two months after the expiration date, whichever comes first (ICRRA Article 20, paragraph (6), and Article 21, paragraph (4); this does not apply to people granted a period of stay of 30 days or less). During this period, they can work within the scope of their current status. You can confirm that an application is pending in the “application for extension of period of stay” field on the back of the residence card.

2. Keep within the permission for activities outside the status

For foreign nationals working under permission for activities outside their status (such as international students working part-time), employers need to make sure the permitted scope is not exceeded. Blanket permission (hokatsu kyoka) covers activities of up to 28 hours per week, and work at premises where adult entertainment businesses are operated is not covered. If the worker has more than one part-time job, the total must be within 28 hours per week (ISA page on permission for activities outside the status, in Japanese; ISA leaflet for employers).

3. Recheck when roles change

When duties change through a transfer or reassignment, confirm that the new work is still within the employee’s status of residence. If a holder of the Engineer/Specialist in Humanities/International Services status is promoted to run the business, a change to the Business Manager status may be required.

Dispatched and Outsourced Workers

We recommend that companies accepting foreign dispatched workers or workers from contractors also check their status of residence. If a host company has a dispatched worker perform work that does not fall under their status, the host company may also be liable for facilitating illegal employment.

Foreign Worker Employment Status Report

Employers of foreign nationals (excluding special permanent residents and those with Diplomat or Official status) must file a foreign worker employment status report with Hello Work under the Act on the Comprehensive Promotion of Labor Policies when they hire a foreign national or when a foreign employee leaves. Failing to file, or filing a false report, is punishable by a fine of up to ¥300,000 (Art. 28(1) and Art. 50; Ministry of Health, Labour and Welfare page on the report, in Japanese).

How to Check a Residence Card

The residence card is issued to foreign nationals who stay in Japan on a mid- to long-term basis, as a result of a permission relating to their status of residence (ISA, “What is a residence card?”, in Japanese). Checking it is a basic step in preventing illegal employment.

Residence cards in the new format issued from June 14, 2026 also show the employment restriction and, if granted, permission for activities outside the status.

Checkpoint 1: The “Employment Restriction” Field (Front)

The employment restriction field on the front of the card shows one of the following (ISA, “What kind of card is the residence card?”, section on what to check when hiring, in Japanese):

Entry (Japanese)	Meaning
就労制限なし (no employment restriction)	No restriction on the type of work. This applies to statuses based on personal relationships, such as Permanent Resident and Spouse or Child of Japanese National
在留資格に基づく就労活動のみ可 (only work based on the status of residence)	Work is allowed only within the scope of the status of residence
指定書により指定された就労活動のみ可 (only work designated in the designation document)	Designated Activities status. Check the designation document, which sets out the activities individually designated by the Minister of Justice
就労不可 (employment not permitted)	In principle, the person cannot be employed. However, check the permission field on the back

Checkpoint 2: The Permission Field (Back)

Even if the front says “employment not permitted” or “only work based on the status of residence,” the person can work within certain limits if the permission field on the back shows a permission. The main entries are:

• “許可（原則週２８時間以内・風俗営業等の従事を除く）” (permitted, up to 28 hours per week in principle, excluding adult entertainment businesses): if the person has more than one part-time job, the total must be within 28 hours per week
• “許可（資格外活動許可書に記載された範囲内の活動）” (permitted, within the scope stated in the permission document): check the permission document

Checkpoint 3: Checking That the Card Is Genuine

The ISA explains that forgery techniques have become more sophisticated in recent years and that there have been cases of forged cards using valid residence card numbers (ISA support page for the reader app and validity inquiry, in Japanese). Check authenticity as follows.

Visual inspection:

The ISA’s guide “How to read the residence card and special permanent resident certificate” (in Japanese) shows the following anti-forgery features for cards in the format issued up to June 13, 2026:

• When the card is tilted up and down, the pattern around the letters “MOJ” changes from pink to green
• When the viewing angle of the silver hologram is changed by 90 degrees, the black and white of the letters reverse

Card number validity inquiry: On the ISA’s residence card number validity inquiry, entering the card number and its validity period shows whether the number has been invalidated. However, some forged cards use valid card numbers, so also check the anti-forgery features on the card (same Q&A, Q115).

Residence card reader app: The ISA distributes a free residence card reader app. It reads the information stored on the card’s IC chip, so you can compare it with what is printed on the card to check for forgery (same support page).

If you find a card you suspect is forged, report it to the nearest Regional Immigration Services Bureau or the police (Q&A, Q116).

Points to Note

• Holders of a provisional release permit: Provisional release is not a status of residence. If the back of the permit carries the condition that the person may not engage in an occupation or activities for remuneration, the person cannot work
• Temporary Visitor: People staying with the Temporary Visitor status cannot work unless they have permission for activities outside their status
• Refugee status applicants: If they do not hold a valid residence card, or the card states “employment not permitted,” they cannot be hired

(same leaflet)

Summary: What Employers Should Have in Place

Facilitating illegal employment is a crime for which not knowing is no defense unless the employer was not negligent. Employers of foreign nationals should:

1. Check the residence card at hiring: photo, status of residence, expiration date of the period of stay, employment restriction, and permission for activities outside the status
2. Check that the card is genuine: visual inspection, the number validity inquiry, and the reader app
3. Keep monitoring the period of stay and the scope of the status: renewal deadlines and whether duties match the status
4. File the foreign worker employment status report with Hello Work

For an overview of Japan’s residence statuses, see our guide to types of status of residence.

How We Can Help

As registered immigration specialists, AEGIS International Administrative Firm takes consultations from companies that employ foreign nationals.

• Checking status and duties: We help you determine whether a candidate or current employee can engage in the planned work under their status of residence
• Preparing and filing residence applications: We prepare documents for applications such as change of status of residence, extension of period of stay, and the Certificate of Authorized Employment, and file them with the ISA on the applicant’s request

If you need help checking a status of residence or with immigration procedures for your employees, please feel free to contact us.