Termination, Dismissal, and Repatriation in Foreign Employment: Procedures and Key Cautions

① Receive the resignation letter and confirm intent

Start with receiving the employee’s resignation letter and confirming intent.
A written resignation is not legally mandatory, but requiring it helps prevent later disputes.
For foreign workers, clearly verify in a language they understand that the resignation is truly voluntary. Obtain a signature (and seal if applicable), and state the date and reason.

② Set the final working day under the employment contract

Confirm contract and work rules concerning notice periods, then fix the final working day.
Hear the employee’s wishes and decide by mutual consent to avoid disputes.
Align schedules with the period of stay and any job change plans. Where a job change is planned, support a smooth transition.

③ Confirm return of company property

Check the return of all items (PC, uniform, ID card, IC card, etc.).
For remote workers or those already preparing to repatriate, plan the method and timing of returns carefully.

④ Prepare EI loss filing and separation notice

File the Notification of Loss of Employment Insurance Insured Status with Hello Work and issue the Separation Notice (Rishokuhyo) needed for unemployment benefits.
※Deadline: within 10 days after resignation.

⑤ Handle social insurance and resident tax

Submit HI/EPI loss notifications to the Pension Office.
Collect and return the HI card together with filings.
Resident tax: even if the worker repatriates, any unpaid resident tax must be settled via special collection from payroll.
Year-end adjustment usually does not apply issue the withholding slip (Gensen Choshu-hyo).
Source: 「Japan Pension Service」”Procedures for Loss of Health Insurance and Employees’ Pension Insurance Eligibility When an Employee Resigns or Dies”

⑥ Pay final wages and retirement allowance

In the final payroll, accurately settle unpaid wages, overtime, and unused paid leave. If a retirement allowance policy applies, pay according to the rules.

① Grounds for dismissal must be reasonable and socially acceptable

Under Labor Contract Act Art. 16, dismissal is void without “objective reasonableness” and “social appropriateness.”
Keep records (performance, guidance, evaluations) that substantiate reasons; reflect them concisely in the dismissal notice.

② Statutory notice or payment in lieu

Labor Standards Act Art. 20 requires 30 days’ prior notice or 30 days’ dismissal notice allowance. This also applies to foreign workers. Even for disciplinary dismissal, rules must be explicit in the work rules and properly communicated.

③ Obligation to issue a Certificate of Reasons for Dismissal

If requested, promptly issue a Certificate of Reasons for Dismissal (LSA Art. 22).
It may be used for immigration or job-search purposes avoid ambiguity, false statements, or emotional wording.

④ Risk exposure in unfair-dismissal disputes

If contested, companies may face labor tribunal/litigation, administrative complaints, and online backlash.
Communication failures (“no interpreter,” “no records”) often fuel disputes. Prepare documentation and protocols with a sharoushi/lawyer.

⑤ Mind the link to immigration status

Employers must file the Notification of End of Acceptance (contract termination) to the Immigration Services Agency after dismissal; failure can invite administrative action.
※It is also advisable for companies to provide explanations and guidance according to each situation and to establish a system that can appropriately support foreign employees.

① Confirm status of residence and period of stay

Losing a job may jeopardize a work-authorized status (e.g., Engineer/Specialist in Humanities/International Services).
Employers must submit the Notification on Acceptance of a Mid- to Long-Term Resident (upon contract end) to the ISA within 14 days (online or paper).
※Reference: Immigration Services Agency, “Notification on the Acceptance of a Mid- to Long-Term Resident”

② Air ticket arrangements and who pays

Follow the employment contract/conditions.
For some statuses (e.g., Specified Skilled Worker), employers may be required to bear repatriation costs. Confirm the legal scheme and contract.

③ Housing/utilities termination

Where the company arranged housing, handle termination, move-out dates, and deposit refunds.
Even for personal contracts, consider multilingual support for terminating utilities/mobile, to prevent issues.

④ City hall filings and My Number card

Before departure, file a moving-out notice, withdraw from National Health Insurance/National Pension if applicable, and return the My Number card.
※depending on whether the departure is temporary or permanent.

⑤ Taxes/social insurance settlement and refunds

Settle any outstanding resident or income taxes via special collection.
For EPI enrollees, advise on the Lump-sum Withdrawal Payment (subject to conditions) and assist with documentation and overseas bank details.

⑥ Airport exit procedures

At departure immigration, the Residence Card must be surrendered.
Provide multilingual guidance in resignation briefings to avoid omissions.