【2026】Points to Note for Foreign Employment | Notifications for Small and Medium-sized Enterprises and Residence Cards

Against a backdrop of labor shortages, an increasing number of Small and Medium-sized Enterprises are considering hiring foreign nationals. However, many cases exist where companies proceed with hiring while feeling anxious, unsure of ‘what to check’ or ‘where to submit notifications’. In foreign employment, there are situations where companies can be subject to penalties due to negligence in verification. This article, based on primary information, is compiled by an Administrative Scrivener from the perspectives of both HR Professionals at Small and Medium-sized Enterprises and foreign nationals themselves, covering essential points for hiring: how to check Residence Cards, the risks of the Crime of facilitating illegal employment, notifications to Hello Work and the Immigration Services Agency, and the latest trends for 2026.

For information on handling the Loss or theft of a Residence Card, please also refer to the separate article ‘If you lose your Residence Card? An Administrative Scrivener explains Reissuance of Residence Card‘, and for new fields in Specified Skilled Worker, see ‘Three New Fields Added to Specified Skilled Worker‘.

---

1. Overall Picture Small and Medium-sized Enterprises Should First Grasp in Foreign Employment

When employing foreign nationals, practical matters can be easily organized by considering the following three main pillars:

• 🪪 Before Hiring: Check the Residence Card to confirm ‘whether they can engage in that work (eligibility for employment and scope of Status of Residence)’
• 📋 At Hiring/Separation: Submit ‘Notification of Foreign National Employment’ to Hello Work
• 🔍 During Employment: Manage the Period of Stay and understand necessary notifications according to the Status of Residence

In Small and Medium-sized Enterprises, HR and general affairs personnel often handle multiple responsibilities, leading to these procedures being postponed. However, there are situations where ignorance of foreign employment rules is not an excuse. The Immigration Services Agency (hereinafter, the Immigration Services Agency) also clearly warns business owners to ‘Please cooperate in preventing illegal employment’.

First, let’s look at ‘Residence Card verification,’ which is the entry point for hiring.

---

2. [Most Important] Three Key Points to Check on the Residence Card to Confirm ‘Eligibility for Employment’

The Residence Card is a card held by foreign nationals legally staying in Japan for mid- to long-term, designed to easily determine whether they can engage in employment. It is not issued to those staying temporarily, like tourists, or to illegal residents. The Immigration Services Agency advises checking the following three points:

Point 1: Check the ‘Work restriction’ field on the front

One of the following will be stated in the ‘Work restriction’ field on the front of the Residence Card.

Statement	Meaning
No Work restriction	There are no restrictions on the content of work (e.g., Permanent Resident, Spouse or Child of Japanese National)
Only work activities permitted under the Status of Residence are allowed	Employment is permitted only within the scope recognized by that Status of Residence
Only work activities at institutions specified in the designation document are allowed	Such as Status of Residence ‘Technical Intern Training’. Verification of the designation document is required.
No Work Permitted	Generally, employment is not permitted. However, verification of Point 2 is required.

Point 2: Check the ‘Permission for Activities Outside Status of Residence’ field on the back

Even if the front states ‘No Work Permitted’ or ‘Only work activities permitted under the Status of Residence are allowed,’ if there is a permission entry in the ‘Permission for Activities Outside Status of Residence’ field on the back, employment is permitted within a certain scope. A typical example is part-time work for international students, where it states ‘Permitted (generally within 28 hours per week, excluding engagement in adult entertainment businesses, etc.)‘.

The 28-hour weekly limit is determined by the total hours if there are multiple part-time jobs. Even if your company’s working hours alone are within 28 hours, exceeding the total with other companies can constitute a violation.

Point 3: Provisional Release Permit is not a Status of Residence

Individuals holding a ‘Provisional Release Permit’ are in a position such as undergoing deportation procedures and do not possess a Status of Residence. If the back of the permit states ‘Cannot engage in occupations or activities for which remuneration is received,’ employment is not permitted. Care must be taken not to confuse it with a Residence Card.

Furthermore, the Immigration Services Agency provides a ‘Residence Card Number Expiration Information Inquiry‘ page (https://lapse-immi.moj.go.jp/html/top.html) where you can check if Residence Card numbers, etc., have expired. You can inquire by entering the number and validity period, but the inquiry result does not prove the validity of the card itself. It is advised to also check the anti-counterfeiting points on the card surface as a measure against forged cards.

---

3. Crime of facilitating illegal employment — Ignorance is No Excuse

The most crucial point for Small and Medium-sized Enterprises in foreign employment is the Crime of facilitating illegal employment. Illegal employment is prohibited by law, and not only foreign nationals who engage in illegal employment but also business owners who facilitate it are subject to penalties.

The Immigration Services Agency’s leaflet clarifies that illegal employment occurs in the following three cases:

1. Cases where undocumented foreign nationals or those subject to deportation work (e.g., a person whose Period of Stay has expired works)
2. Cases where a person works without Permission from the Immigration Services Agency (e.g., a person who entered Japan with a Temporary Visitor Status of Residence works / a Student works without permission)
3. Cases where a person works beyond the scope permitted by the Immigration Services Agency (e.g., a person with Engineer/Specialist in Humanities/International Services Status of Residence engages in simple labor / a Student works beyond the permitted hours)

Details of Penalties

Act Subject to Penalty	Sanction/Penalty
Facilitating or brokering illegal employment (Crime of facilitating illegal employment)	Imprisonment for up to 3 years or a fine of up to 3 million yen, or both (raised to imprisonment for up to 5 years or a fine of up to 5 million yen, or both, from April 1, 2027)
Foreign business owner who facilitated or brokered illegal employment	Subject to deportation
Failed to submit a notification to Hello Work or submitted a false notification	Fine of up to 300,000 yen

What is important here is that ignorance alone does not exempt one from punishment. The Immigration Services Agency clearly states that even if an employer was unaware that a foreign national they intended to employ was an illegal worker, “they will not be exempt from punishment if there is negligence, such as failing to check the Residence Card.” In other words, the failure to check the Residence Card itself may be deemed negligence. For how to verify job changers when hiring mid-career and the 2027 increase in penalties, see “Certificate of Authorized Employment: Hiring Job Changers in Japan”.

---

4. What Foreign Nationals Themselves Should Be Aware Of

Up to this point, we have focused on the verification obligations of companies, but foreign nationals themselves also have rules to follow. Correctly understanding the permissibility and scope of employment is directly linked to the stability of their stay.

• 👤 Do not work beyond the scope of your Status of Residence: Each Status of Residence has a permitted scope of activities. If you engage in work outside this scope, you generally need Permission for Change of Status of Residence.
• ⏱️ Adhere to the hours permitted under Permission to Engage in Activity Other than that Permitted under the Status of Residence: If you have Permission to Engage in Activity Other than that Permitted under the Status of Residence for Student or Dependent, you must generally adhere to a limit of 28 hours per week (total if you have multiple workplaces).
• 🏠 Report changes in residence or affiliated organization: If your affiliated organization changes due to job change, resignation, or enrollment in school, mid- to long-term residents themselves have a duty to report this (detailed in the next chapter).
• 🪪 Always carry your Residence Card: Mid- to long-term residents are required to carry their Residence Card.

These are not things that companies can unilaterally manage; the understanding and cooperation of the individual are essential. Carefully explaining these points along with employment conditions at the time of hiring will help prevent future problems.

---

5. Two Notifications for HR Professionals at Companies

There are two distinct systems of notifications regarding foreign employment, with different legal bases and submission destinations. This can be a point of confusion, so we will clarify it in the table below.

Notification	Legal Basis	Submission Destination	Who Submits	Approximate Deadline
Notification of Foreign National Employment	Act on Comprehensive Promotion of Labor Policies	Hello Work	Business Owner (Company)	Each time of hiring or separation
Notification Regarding Affiliated (Activity) Organization	Immigration Control Act	Immigration Services Agency	Mid- to long-term resident themselves	Within 14 days from the occurrence of the event

5-1. “Notification of Foreign National Employment” to Hello Work (Company’s Obligation)

Business owners who employ foreign nationals (excluding Special Permanent Residents and those with “Diplomat” or “Official” Status of Residence) are obligated to submit a Notification of Foreign National Employment based on the Act on Comprehensive Promotion of Labor Policies. This notification must be submitted to Hello Work each time a foreign national is hired or separates from employment.

• 📤 Failure to submit this notification or submitting a false notification is subject to a fine of up to 300,000 yen (Article 40 of the same Act).
• The submission deadline varies depending on whether the individual is covered by employment insurance. If not covered, the approximate deadline for both hiring and separation is by the end of the following month.
• Furthermore, if this notification is submitted, there is no need to submit the same information again to the Immigration Services Agency.

5-2. “Notification Regarding Affiliated Organization” to Immigration Services Agency (Individual’s Obligation)

On the other hand, the “Notification Regarding Affiliated (Activity) Organization” under the Immigration Control Act is a notification submitted by mid- to long-term residents themselves. This applies to individuals holding Status of Residence such as Professor, Highly Skilled Professional, Business Manager, Intra-company Transferee, Technical Intern Training, or Student, and must be submitted within 14 days from the date the event occurred when there is a change in the name or location of the contracting organization (workplace), the dissolution of the organization, separation from the contracting organization (resignation/job change), or transfer.

While this is not a direct obligation of the company, by prompting foreign employees to submit notifications when they join or leave the company, you can contribute to the proper management of their Status of Residence. Especially at the time of resignation, as individuals tend to forget to submit notifications, it is advisable for companies to remind them.

---

6. Practical Flow from Recruitment to Commencement of Employment

This section outlines the basic practical flow for Small and Medium-sized Enterprises when employing foreign nationals. Please use it as a checklist tailored to your company’s situation.

• ☑ ① Confirm the original Residence Card: Check for the presence/absence of Work restriction, the Permission for Activities Outside Status of Residence section, and the Period of Stay expiration date, then store a copy.
• ☑ ② Confirm the suitability of the Status of Residence for the job duties: Verify that the assigned duties fall within the scope of the Status of Residence (consider obtaining a Certificate of Authorization for Employment if necessary).
• ☑ ③ Manage Period of Stay expiration dates: Create a list of renewal periods and proceed with preparations with the individual and specialists before the expiration date.
• ☑ ④ Conclude an employment contract: Clearly state working conditions in writing (bilingual, including native language, is desirable).
• ☑ ⑤ Submit Notification of Foreign National Employment to Hello Work: Submit upon employment.
• ☑ ⑥ If a Change of Status of Residence is necessary, commence employment only after obtaining permission: For changes from Student to a work-related Status of Residence, do not allow employment before permission is granted.

---

7. Latest Trends in 2026 (Changes HR Professionals Should Note)

In 2026, there are ongoing systemic changes regarding Status of Residence procedures for foreign nationals. It is important to understand the overview as these may affect recruitment plans. Details and enforcement dates are subject to change, so please confirm the latest information from primary sources.

• 📅 Stricter proof of Japanese proficiency: There is a movement to review the methods of proving Japanese proficiency for some Status of Residence categories and procedures. Operations are shifting towards requiring not only learning history but also certificates of passing exams.
• 💴 Revision of Immigration Services Fees: Under the Order for Enforcement of the amended Immigration Control Act (Cabinet Order No. 268 of 2026, promulgated August 28, 2026), the fees for Change of Status of Residence, Extension of Period of Stay, and Permission for Permanent Residence were revised from October 1, 2026. Renewals cost 10,000 to 75,000 yen depending on the Period of Stay granted, and Permission for Permanent Residence costs 200,000 yen. For applications accepted up to September 30, 2026, the pre-revision amount applies even if permission is granted in October or later.
• 🪪 Utilization of Residence Card Reader App and inquiry of invalidation information: To counter forged Residence Cards, the Immigration Services Agency recommends using its reader app and the inquiry of invalidation information service.

These trends will impact the acceptance system for foreign talent and recruitment schedules. For recruitment spanning system transition periods, early information gathering and preparation are effective.

---

8. Summary: Confirmation and Records Protect Small and Medium-sized Enterprises

When conducted correctly, foreign employment can be a significant asset for Small and Medium-sized Enterprises. However, neglecting to confirm Residence Cards carries the risk of the company being charged with the Crime of facilitating illegal employment. Key points are to confirm eligibility for employment with the Residence Card before hiring, to notify Hello Work upon employment and separation, and to keep records of these confirmations and procedures. When in doubt, consulting a Status of Residence specialist can ensure a smooth acceptance process.

---

Frequently Asked Questions (FAQ)

Q1. Is taking a copy of the Residence Card sufficient for confirmation?

While storing a copy is effective, it may not always be sufficient. It is crucial to actually confirm the work restriction status section, the Permission for Activities Outside Status of Residence section, and the Period of Stay expiration date, and to verify them against the original. If forgery is suspected, consider utilizing the inquiry of invalidation information or the reader app, or contacting your nearest Regional Immigration Services Bureau.

Q2. What should I be careful about when employing international students for part-time work?

Confirm that the Permission for Activities Outside Status of Residence section indicates permission for “generally within 28 hours per week.” Please note that this 28-hour limit is determined by the total hours across all part-time jobs. Judging solely by your company’s hours may inadvertently lead to a violation.

Q3. What happens if I forget to submit the Notification of Foreign National Employment?

Failure to submit the notification or submitting a false notification may result in a fine of up to 300,000 yen. If you realize you have forgotten to submit it, please consult Hello Work promptly.

Q4. I am unsure if the job duties match the Status of Residence.

Individual judgment is required to determine whether the assigned duties fall within the scope of activities permitted under the Status of Residence. If you are unsure, we recommend considering obtaining a Certificate of Authorization for Employment or consulting a specialist before commencing employment.

Q5. What should a company do when an employee resigns?

Upon an employee’s separation, the company submits the Notification of Foreign National Employment to Hello Work. Additionally, since the “notification regarding the affiliated organization” under the Immigration Control Act is the individual’s obligation, encouraging the individual to submit this notification (within 14 days) can contribute to the proper management of Status of Residence.

Q6. Can you truly be penalized even if you were unaware?

The Immigration Services Agency states that even if one was unaware that an individual was an illegal worker, they cannot escape punishment if there was negligence, such as failing to check the Residence Card. The fact and record of having thoroughly conducted checks serve as the basis to protect businesses.

---

When foreign employees are carried over through a business succession or a change of management, what is required is not a change of status of residence but a notification concerning the contracting organization. For details, see Business Succession and Foreign Employees.

---

This article is written based on publicly available information as of July 2026. Details of the system and its implementation period may change in the future. For actual applications and notifications, please confirm with the official information from the Immigration Services Agency and the Ministry of Health, Labour and Welfare, or with our office.

Author of this article: Administrative Scrivener Satoshi Nakayama
Representative, Administrative Scrivener Corporation Miyazaki International Legal Office
Location: Miyazaki City, Miyazaki Prefecture