“We want to hire a foreign national for the first time, but we don’t know where to start…”
“I’m worried about accidentally breaking the law or making a mistake in the paperwork…”
“If there are subsidies we can use, I want to leverage them to keep costs down.”
Many business owners and HR managers feel that the skills of foreign talent are essential for their company’s growth, yet they harbor these very anxieties and questions.
Hello. I’m Megumi Suzuki, the representative of Megumi International Certified Administrative Procedures Legal Specialist Office. Our firm specializes in assisting companies with the essential “Status of Residence (visa)” application procedures required for hiring foreign nationals, offering services in English, Chinese, and Japanese.
When hiring foreign employees, failing to correctly understand the laws and rules can lead to serious trouble that cannot be excused by simply saying, “I didn’t know.” However, by collaborating with the right specialists and understanding the key points, the process is not difficult at all.
In this article, I will clearly explain the three essential pillars for successfully hiring foreign talent: ① The Rules of Status of Residence, ② The Utilization of Subsidies, and ③ The Division of Roles Among Specialists.
By the time you finish reading this guide, your anxieties should be resolved, and you will be able to take the first step toward hiring foreign employees with confidence. Let’s get started together.
目次
Start Here! The Absolute Rule of Hiring Foreigners: “Status of Residence”
The foundation for everything when considering hiring a foreign national is an understanding of the “Status of Residence.” This is the area my profession, Certified Administrative Procedures Legal Specialist (Gyoseishoshi), specializes in, and it is the first step toward full legal compliance.
“Simply put, a ‘Status of Residence’ is a certificate that shows what kind of activities a person is permitted to do in Japan. It’s so crucial that if you get this part wrong, all subsequent procedures will come to a halt. Let’s make sure we firmly grasp this fundamental concept.”
What Kinds of Status of Residence Are There?
Statuses of Residence are broadly divided into three groups, based on the type of work permitted in Japan.
① Statuses with No Restrictions on Work (Can work just like a Japanese national)
Applicable Statuses: “Permanent Resident,” “Spouse or Child of Japanese National,” “Long-Term Resident,” etc.
Characteristics: These statuses are based on the individual’s civil status or position. There are no restrictions on the type of work they can do, and you can employ them in any job category.
② Statuses Permitting Work Only Within a Defined Scope
Applicable Statuses: “Engineer/Specialist in Humanities/International Services,” “Skilled Labor,” “Specified Skilled Worker,” etc.
Characteristics: Many foreign nationals with specialized knowledge or skills hold one of these statuses. As they can only perform work permitted under their specific status, it is critical to carefully verify that the job description matches their qualifications before hiring.
③ Statuses That Do Not Permit Work in Principle
Applicable Statuses: “Student,” “Dependent,” etc.
Characteristics: The primary purpose of these statuses is not employment, so in principle, individuals holding them are not allowed to work. However, if they have obtained a “Permission to Engage in Activity Other Than That Permitted,” they can be hired for part-time work under the rule of 28 hours per week.
Must-Check Items on the “Residence Card” at the Time of Hire
During a job interview, you are legally obligated to have the candidate present their original “Residence Card” (Zairyu Card) and confirm the following three points:
Front Side: The type of “Status of Residence.”
Front Side: The “Shuurou Seigen no Umu” (Restriction on Employment) field.
Back Side: The “Shikakugai Katsudou Kyoka Ran” (Permission to Engage in Other Activities) field (if hiring a student, etc., for part-time work).
“I Didn’t Know” is Not an Excuse! The Heavy Penalties for Promoting Illegal Employment
If you neglect to check an applicant’s Status of Residence or have them work beyond the scope of their permitted activities, your company could be charged with the serious crime of “Promoting Illegal Employment” (fuhou shuurou jochou zai).
The penalties are severe—imprisonment for up to 3 years or a fine of up to 3 million yen—and could threaten the very existence of your company.
Don’t Forget! Notification to Hello Work
When you hire or when a foreign employee leaves your company, you are obligated to file a “Notification of the Employment Situation of Foreigners” with Hello Work. Be sure not to forget this step.
The Division of Roles: The Difference Between a Gyoseishoshi and a Sharoushi
Let’s clarify the different roles of the specialists who support the hiring of foreign nationals. Understanding this distinction is vital for a smooth process.
Certified Administrative Procedures Legal Specialist (Gyoseishoshi) (My area of expertise!)
Area of Specialization: Procedures with the Immigration Services Agency of Japan.
Specific Duties: We are legal specialists who handle procedures related to “visas,” such as acquiring, changing, or renewing a Status of Residence.
Labor and Social Security Attorney (Shakai Hoken Roumushi or Sharoushi)
Area of Specialization: Procedures related to labor, social insurance, and subsidy applications.
Specific Duties: They are specialists in handling employment contracts, social insurance enrollment, creation of work rules, and subsidy applications.
In short, bringing a foreign national to Japan or changing their Status of Residence is the job of a Gyoseishoshi. The subsequent employment management and subsidy applications are the job of a Sharoushi. This is a clear and important division of labor.
[Information] A Powerful Ally: “Subsidies and Grants”
[Important] The application procedures for subsidies and grants are, by law, the exclusive domain of Labor and Social Security Attorneys (Sharoushi).
While we Gyoseishoshi cannot handle the application process itself, we can provide information on which programs might be a good fit for your situation and connect you with a trusted Sharoushi.
“Many subsidies require you to submit a plan before you start something. To avoid a situation where you realize, ‘We already did that…,’ the secret to success is to consult with a Sharoushi at an early stage. If you consult with our office, we can introduce you to the right specialist at the right time, so you can proceed with peace of mind.”
Here are a few representative subsidies from the Ministry of Health, Labour and Welfare that are available to companies nationwide.
Subsidy to Support Securing Human Resources (Course for Improving the Working Environment for Foreign Workers)
This supports costs associated with creating a better workplace for foreign staff (e.g., multilingual translation of work rules).
Career Up Promotion Grant (Course for Regular Employee Conversion)
A very generous program that supports companies that convert non-regular employees to full-time regular employees.
Note: As this presupposes long-term employment, individuals on “Technical Intern Training” or “Specified Skilled Worker (i)” statuses are not eligible.
Trial Employment Subsidy (General Trial Course)
To prevent hiring mismatches, this supports the cost of hiring someone for a three-month trial period.
In Your Area Too? Local Government Subsidies
Separate from the national government, prefectures and municipalities may offer their own unique subsidies (e.g., grants for hiring talent in the nursing care sector). It’s worth checking with a Sharoushi or your local government office about these as well.
A Step-by-Step Roadmap to Avoid Failure
Finally, let’s summarize the points above and propose a concrete action plan for moving forward in collaboration with specialists.
The Flow from Pre-Hiring to Post-Hiring
Phase 1: Pre-Hiring (Strategy Planning)
To Do: Clarify what kind of work you want the employee to do and determine which Status of Residence is necessary. Consult with us, a Certified Administrative Procedures Legal Specialist (Gyoseishoshi), to assess feasibility.
Phase 2: Recruiting & Interviewing
To Do: Begin recruitment activities. During the interview, always check the original Residence Card.
To Do: In parallel with the Status of Residence application, retain a trusted Sharoushi to submit the subsidy plan paperwork.
Phase 5: Post-Onboarding Procedures
To Do: Once the employee joins the company, complete the notification to Hello Work and the social insurance procedures.
Phase 6: Retention Support & Management
To Do: Manage the expiration date of the Residence Card and ask a Gyoseishoshi to handle the renewal application well before it expires. The final application for the subsidy payment will be handled by the Sharoushi.
As you can see, the key to success is having the Gyoseishoshi and Sharoushi work together in their respective areas of expertise.
Summary and Call to Action
We’ve covered the crucial points for making your experience with hiring foreign nationals a success.
Point 1: Thoroughly Follow the Rules of Status of Residence.
First, consult with a Gyoseishoshi, the specialist in “visas,” to ensure full legal compliance.
Point 2: Understand the Roles of Different Specialists.
Understand the division of labor—”Visas are for the Gyoseishoshi,” “Subsidies and labor matters are for the Sharoushi“—and consult the appropriate expert.
Point 3: Collaborate and Plan Systematically.
Work with each specialist from the hiring planning stage to move through the procedures systematically.
Hiring foreign employees involves many interconnected procedures, so it’s natural to feel anxious.
“I want to start by just asking about Status of Residence.”
“I want to know how our company should coordinate with different specialists.”
“I need an introduction to a trustworthy Sharoushi.”
If this sounds like you, please don’t try to handle it all alone. Feel free to contact our office for a consultation. We offer a free initial consultation for matters related to Status of Residence and can provide advice on the entire process and next steps.
It would be my greatest pleasure to help your company take a new step forward with wonderful talent from around the world.
We are committed to supporting you with our full dedication. Please don’t hesitate to get in touch.
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