What is the difference between residency status regulations and labor laws?

When talking with foreign business owners, there is a phrase I hear very often.

“The visa isn’t a problem, so it’s fine.”

However, every time I hear that, I feel the need to ask:

“While the visa may be fine, is everything in order with labor laws?”

That is the question.

In fact, in Japan,

• Residence Status (Visa)
• Labor Law

are governed by separate sets of rules.

Failure to understand this difference can lead to unexpected problems.

A common misconception among foreign business owners

When hiring foreign nationals, the first concern is usually their residence status.

For example,

• Engineer, Specialist in Humanities, International Services
• Skilled Labor
• Specified Skilled Worker
• Student
• Dependent
• Permanent Resident

and so on.

“I’ve confirmed a visa that allows work” = “No problem”

Foreign business owners sometimes think this way.

However, this is not actually the case.

Even if you meet the requirements for a status of residence, you may still be in violation of labor laws.

Status of residence determines “whether you can work”

First, what the Japanese Immigration Control and Refugee Recognition Act stipulates is:

“whether a person can work in Japan and what kind of work they can do.”

For example,

Student and Dependent are not permitted to work. However, they can work by obtaining a special permission, though there are restrictions on working hours.

Under the “Engineer, Specialist in Humanities, International Services” status, full-time work is permitted, but there are certain restrictions on the nature of the work.

In other words, the Immigration Control and Refugee Recognition Act determines

“whether this person is allowed to work and in what type of work.”

Labor law establishes the rules for “how to employ workers.”

On the other hand, labor law defines

“how to treat workers.”

For example, labor law establishes rules regarding

• minimum wage
• overtime pay
• working hours
• paid leave
• employment contracts
• dismissal

and other rules.

Basically, the same rules apply to both Japanese and foreign nationals.

labor law is the set of rules that applies “after employment has been approved.”

Violations of labor law can occur even if there are no visa issues

Suppose you hire a foreign national with a “Engineer, Specialist in Humanities, International Services” status of residence.

The job duties also match the status of residence.

At this point, there are no issues under the Immigration Control and Refugee Recognition Act.

However, if any of the following occur, labor law violations arise:

• Pay was below the minimum wage
• Overtime pay was not provided
• Working conditions were not clearly specified

In other words, even with a valid visa, violations can still occur.

Violations of the Immigration Control and Refugee Recognition Act can occur even while complying with labor laws

The opposite scenario also exists.

For example:

• Salary is appropriate.
• Overtime pay is provided.
• Social insurance is also in place.

There are no issues under labor law.

However, if you have international students working beyond the weekly maximum hours, employ individuals with a status of residence that does not permit employment, or have them perform work not authorized by their status of residence, this constitutes a violation of the Immigration Control and Refugee Recognition Act.

In other words, even if you comply with labor law, there is still a possibility of violating the Immigration Control and Refugee Recognition Act.

Why is this distinction important?

When hiring foreign nationals, it is insufficient to check only one of these areas.

For example, when hiring Japanese employees, you generally only need to consider labor laws.

However, when hiring foreign employees, you must verify both

• the Immigration Control and Refugee Recognition Act
• labor laws.

This is a major difference from hiring Japanese employees.

Points Foreign Business Owners Should Note

In the case of foreign business owners, since they themselves hold a status of residence and are operating in Japan, their focus naturally tends to be on the Immigration Control and Refugee Recognition Act.

On the other hand,

• minimum wage
• labor contracts
• overtime pay
• social insurance

and other labor management issues tend to be put on the back burner.

However, to continue doing business in Japan for the long term, you need to understand both.

Actual disputes often involve both

In reality, cases involving only the Immigration Control and Refugee Recognition Act, or only labor laws, are not very common.

For example, when a dispute arises with a foreign employee,

• residence status
• employment contract
• wages
• social insurance

can all become issues simultaneously.

That is precisely why the mindset that “all you need to do is check the visa” is dangerous when hiring foreign workers.

Summary

In the context of hiring foreign workers, the Immigration Control and Refugee Recognition Act and labor laws are separate sets of laws.

The Immigration Control and Refugee Recognition Act determines

“whether a person is eligible to work.”

Labor laws determine

“under what conditions they are employed.”

When hiring foreign employees, you can only manage employment appropriately if you understand both of these.

To maintain a long-term, stable business in Japan, rather than “just checking the visa,” you need a perspective that “considers both the visa and labor management.”