A Complete Guide to Corporate Procedures for Hiring Foreign Workers Process, Required Documents, and Key Points to Watch

Today, hiring foreign workers is no longer unusual. However, for companies, the process doesn’t end with recruitment.
They are required to follow proper legal procedures, including verifying residence status, concluding employment contracts, and submitting various reports to government offices.
In addition, when employing foreign workers, it is equally important to ensure proper working conditions and a safe, supportive work environment, just as you would for Japanese employees.

This article explains—clearly and practically from a labor and social security expert’s perspective—the full process of corporate procedures involved in hiring foreign workers, the required documents, and key points that are often overlooked.
It is designed to be useful not only for companies considering hiring foreign workers for the first time, but also for those already employing them.

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1. What Is Foreign Employment?

When hiring foreign workers in Japan, it is essential to first understand the basic framework for “foreign worker employment.” Based on legal regulations, let’s outline the benefits for companies and the key points they need to address.

1-1. The Legal Framework for Employing Foreign Workers

When hiring foreign workers, companies must comply with the same labor laws and regulations that apply to Japanese employees.
It is illegal to exclude applicants solely based on nationality, to make them work excessive overtime without limits, or to pay them below the minimum wage.
The following are some of the key laws that are especially important in foreign employment.

Understanding these laws and applying them appropriately in day-to-day operations is a fundamental responsibility for companies hiring foreign workers.

1-2. Benefits Companies Can Gain from Hiring Foreign Workers

Hiring foreign employees offers not only a solution to the labor shortage but also many additional benefits for companies.

2. Required Procedures for Hiring Foreign Workers

When employing foreign workers, several procedures are required — from pre-hiring preparations to submitting notifications to the Immigration Services Agency.
This section provides a step-by-step overview of the entire process involved in foreign employment, as well as a detailed explanation of residence statuses, which play a critical role in ensuring compliance.

2-1. Pre-Hiring Preparation: Confirming Residence Status

The first step when hiring a foreign worker is to check their residence status.
Each type of residence status determines what kind of work the person is legally allowed to perform in Japan.

If a company allows a foreign employee to engage in work outside the scope of their authorized activities, it may be charged with “promoting illegal employment” under the Immigration Control Act.
Therefore, confirming residence status before employment begins is absolutely essential.

[Types of Residence Status Permitting Employment]

There are various categories of residence status that allow employment in Japan, depending on the nature and purpose of the activity.
It is important to note that there is no universal “work visa” that allows foreigners to perform any job without restrictions.

The main types of work-eligible visas are as follows:

Main Types of Residence Status Allowing Employment	Their Examples
Engineer / Specialist in Humanities / International Services	For individuals engaged in professional or international work requiring specialized knowledge. Examples: IT engineers, interpreters, translators, marketers
Skilled Labor	For individuals possessing advanced or specialized technical skills. Examples: chefs, construction workers, mechanics
Intra-Company Transferee	For employees transferred from an overseas parent company, branch, or affiliated office to a company located in Japan.
Business Manager	For individuals who establish and manage a company in Japan, or who serve in a management position.
Status-Based Residence Categories These include: ・Spouse or Child of a Japanese National ・Permanent Resident ・Spouse or Child of a Permanent Resident ・Long-Term Resident	Holders of these status-based visas are allowed to work freely in Japan without restrictions, including in unskilled or part-time positions.

Note:
Residence statuses such as “Student” or “Dependent” generally do not permit employment.
If a person under these categories wishes to work (for example, a part-time job), they must first obtain Permission to Engage in Activity Other Than That Permitted by the Status of Residence from the Immigration Services Agency.

Even with this permission, working hours are limited to 28 hours per week, and employment must be within the scope of part-time or temporary work.

[How to Apply for a Work Visa]

To officially employ a foreign national, the candidate must obtain the appropriate work visa (residence status) before starting work.
The general process for visa acquisition is as follows.

Because visa (residence status) applications require both legal and practical expertise, it is often advisable to consult a certified immigration specialist (Gyoseishoshi) or other professional for support.

[Permission to Engage in Activity Other Than That Permitted by the Status of Residence]

Residence statuses such as “Student” or “Dependent” generally do not allow employment.
However, by obtaining Permission to Engage in Activity Other Than That Permitted by the Status of Residence, individuals may be allowed to work part-time under certain conditions.

Working without this permission is considered unauthorized employment, and both the foreign national and the employer may be subject to penalties.
Therefore, always confirm the worker’s application and approval status before starting employment.

2-2. Concluding the Employment Contract

Once the foreign worker’s residence status has been confirmed, the next step is to conclude a proper employment contract.
The terms and conditions must be presented clearly and unambiguously, in a way that the foreign employee can fully understand.
Both parties should sign the contract only after mutual agreement, and each should retain a copy for recordkeeping.

[Key Points for Preparing an Employment Contract]

In accordance with the Labor Standards Act, the employment contract must clearly state the basic working conditions listed below.
Particular attention should be paid to ensuring that the job description matches the employee’s residence status, as any inconsistency may lead to legal issues.

Item	Key Points
Contract Period	Clearly state whether the contract is fixed-term or indefinite, and specify renewal conditions and criteria.
Job Description	The duties must fall within the scope of activities permitted by the residence status. Example: For “Engineer / Specialist in Humanities / International Services,” roles such as translation or marketing are acceptable.
Work Location	Indicate the primary workplace and, if transfers are possible, describe the potential scope of relocation.
Working Hours	Specify start and end times, break periods, holidays, and whether overtime work may occur.
Wages	Clearly outline the base salary, overtime pay, commuting allowance, bonuses, payment method, closing date, and pay date.
Social Insurance	State whether the employee is enrolled in health insurance, employee pension, and employment insurance.
Resignation / Dismissal	Describe the procedures and conditions for voluntary resignation or termination by the employer.

Recommendation: Use of the Employee’s Native Language

To ensure full understanding, it is highly recommended that the employment contract be prepared in both Japanese and the employee’s native language.
During the explanation of contract terms, consider using interpreters or translation tools to avoid any misunderstanding or discrepancies in communication.

Issuing a Written Notice of Working Conditions

Under Article 15 of the Labor Standards Act, employers are legally required to provide employees with written notice of their working conditions at the time of hiring.
This document is called the “Notice of Working Conditions.”

※ Although it is often confused with the employment contract due to its name and timing, its purpose and legal effect are different.

Document Name	Purpose	Legal Effect
Notice of Working Conditions	To “present” the working conditions	A one-sided legal obligation of the employer to inform the employee
Employment Contract	To confirm “mutual agreement” on working conditions	Established through mutual consent between employer and employee

2-3. Post-Hiring Procedures

After hiring a foreign employee, the company must complete various social insurance and labor insurance procedures, just as it would for Japanese employees.
Below is an explanation of the eligibility requirements and application process for Health Insurance, Employees’ Pension Insurance, and Employment Insurance.

[Health Insurance: Eligibility and Procedures]

Japan’s health insurance system helps reduce medical expenses in cases of illness, injury, or childbirth, and also provides income compensation during leave.
Foreign workers who have an employment contract with a company in Japan are, in principle, required to join the system.

[Employees’ Pension Insurance: Eligibility and Procedures]

The Employees’ Pension Insurance system is a public program that provides not only retirement benefits but also disability and survivor’s pensions in the event of injury, illness, or death.
Foreign employees who meet the eligibility criteria are required to enroll under the same conditions as Japanese workers.

[Employment Insurance: Eligibility and Procedures]

The Employment Insurance system provides benefits during unemployment, childcare leave, or family care leave, and can also be used to support training and career development.
Foreign workers must be enrolled if they meet certain requirements.

[Resident Tax Procedures]

Resident tax is a local tax paid to the municipality where the individual resides.
Foreign nationals living in Japan are also subject to resident tax.
The tax obligation generally arises if the individual is a resident of Japan as of the date of employment.

Employers are, in principle, required to apply “the Special Collection System”, under which resident tax is deducted directly from the employee’s salary.
After hiring, the employer must notify the local municipal office to register for special collection.

When switching to the special collection method, the required documents differ depending on how the foreign employee’s resident tax was handled at their previous job.

Foreign employees who are registered residents in Japan are also subject to resident tax.
The taxable amount is determined based on annual income and dependent status.
Employers should, where necessary, provide explanations in multiple languages to ensure the employee fully understands the content.

2-4. Reporting to Immigration Authorities

Companies employing foreign workers are obligated to report to the Immigration Bureau (Immigration Services Agency) to accurately reflect their residence status and employment conditions. Failure to submit these notifications may result in disadvantages for both the company and foreign employees.

[Notification of Employment Commencement or Termination]

When a company hires a foreign national, it must submit a notification on the employment status of a mid- to long-term resident to the Immigration Services Agency, in accordance with the relevant Ministerial Ordinance and the individual’s residence status.

※ In cases where a “Notification of Employment Status for Foreign Nationals” has already been submitted to Hello Work (Public Employment Security Office), this separate notification to the Immigration Services Agency may be omitted.

Failure to submit these notifications may result in cancellation of the foreign employee’s residence status, or lead to disadvantages during future renewal or change procedures.

For employers, neglecting to report can also damage the company’s credibility with the Immigration Services Agency, creating potential compliance risks.
Therefore, it is essential to ensure that all notifications are submitted accurately and within the prescribed deadlines.

If you are uncertain about the required procedures or how to implement them within your organization, it is strongly recommended to consult a certified immigration specialist (Gyoseishoshi) or a labor and social security attorney (Sharōshi) experienced in managing employment for foreign nationals.

3. Key Points Companies Should Be Aware Of

When hiring foreign workers, companies must not only comply with laws and regulations but also implement management systems that account for cultural and linguistic differences. This section explains key points companies should be mindful of.

3-1. Ensuring Proper Working Conditions

Foreign workers must also be guaranteed proper working conditions, just as Japanese workers are. The following three points are important considerations for preventing labor disputes.

3-2. Maintaining Workplace Safety and Hygiene

Ensuring a safe and healthy working environment to prevent occupational accidents is a critical responsibility of every employer.

3-3. Proper HR Management, Training, and Welfare Systems etc.

To ensure that foreign employees can settle into the workplace and perform to their full potential, companies must implement the following initiatives:

In addition, employers should actively embrace cultural diversity and foster mutual understanding within the workplace.
Creating frequent opportunities for open dialogue and communication helps build trust, strengthen teamwork, and promote a truly inclusive environment.

4. Conclusion

Employing foreign nationals offers companies far more than just a solution to labor shortages — it also brings significant benefits such as enhanced organizational diversity, innovation, and global competitiveness.

At the same time, however, employers must carefully comply with a wide range of legal obligations — including verifying residence status, concluding proper employment contracts, completing various social insurance procedures, and submitting notifications to the Immigration Services Agency.

By following each of these steps carefully and systematically, as outlined in this column, companies can achieve lawful and smooth foreign employment management while building a stronger and more inclusive workplace.

If your company feels uncertain about handling these matters internally, consider consulting with a gyoseishoshi (certified immigration administrative scrivener) experienced in visa acquisition and management, or a sharoushi (labor and social security attorney) specializing in labor management for foreign employees.
Their expert support can ensure compliance, reduce risks, and promote a sustainable, well-managed approach to employing foreign talent.

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