What Is a Status of Residence?

In recent years, as Japan addresses labor shortages and advances its globalization efforts, many companies have been actively recruiting foreign talent.

However, to legally employ foreign nationals, it is essential to have a clear understanding of “status of residence.” A status of residence serves as the legal basis for foreign nationals to work in Japan and is a critical system that significantly impacts a company’s ability to hire them and the nature of their work.

If a company proceeds with hiring based on a misunderstanding, it may face legal liability.

Here, we provide a detailed explanation ranging from the basics of status of residence to key points companies should be aware of.

Definition and Overview of Status of Residence

Status of residence refers to the legal authorization that permits foreign nationals to reside in Japan and engage in specific activities.

While not required for Japanese nationals, foreign nationals must obtain some form of status of residence in order to stay in Japan.

Residence statuses are defined under the Immigration Control and Refugee Recognition Act (ICRA), and the permitted activities vary depending on the specific status.

For example, under the “Engineer, Specialist in Humanities, or International Services” status, work utilizing specialized knowledge is permitted, but unskilled labor is generally not allowed. On the other hand, for status-based residence statuses such as “Permanent Resident” or “Spouse of a Japanese National,” there may be no restrictions on employment activities.

It is important for companies considering hiring foreign nationals to first confirm which status of residence the applicant holds.

Types of Status of Residence and Eligibility for Employment

Status of residence can be broadly divided into two categories: “employment-based status” and “family-based status.”

Furthermore, from the perspective of work eligibility, they can be divided into “status of residence with work restrictions” and “status of residence without work restrictions.”

Typical work-based status of residence categories include “Engineer, Specialist in Humanities/International Services,” “Business Manager,” “Care Worker,” “Skilled Worker,” and “Specified Skilled Worker.”

For each of these, the scope of work permitted is defined, and individuals cannot perform work beyond the permitted scope.

On the other hand, statuses such as “Permanent Resident,” “Long-term Resident,” and “Spouse of a Japanese National” are based on personal status. However, from an employment perspective, they have no work restrictions, allowing holders to work in a wide range of occupations just like Japanese nationals.

Furthermore, while statuses such as “Student” and “Dependent” generally do not permit employment, part-time work for a limited number of hours may be permitted by obtaining a “Permission to Engage in Activities Outside the Scope of Status of Residence.” Companies must verify not only the name of the residence status but also the specific types of work actually permitted.

The Importance of Verifying Residence Status for Companies

When hiring foreign nationals, companies are obligated to verify their Residence Cards.

If a company is aware that an individual is a foreign national but fails to conduct proper verification and allows them to engage in work that constitutes illegal employment, the company may be charged with the crime of aiding and abetting illegal employment.

The Residence Card allows verification of the type of residence status, the period of stay, and whether a permit for activities outside the scope of the status has been granted. It is particularly important to confirm the status of renewal procedures if the period of stay is nearing its end.

Furthermore, even if a foreign national holds a residence status that permits employment, issues may arise if the actual work duties fall outside the scope of that status. For example, this could occur if a foreign national is hired as a professional but is actually assigned only to perform menial tasks.

Companies are required to establish a system to continuously manage the status of residence not only at the time of hiring but also throughout the employment period.

Key Points for Residence Status Management from the Perspective of Administrative Scriveners and Labor Consultants

From the perspective of an administrative scrivener, it is crucial to handle procedures for obtaining, changing, and renewing residence status appropriately. By confirming in advance whether a prospective foreign employee can obtain a residence status suitable for the job duties, companies can prevent issues after hiring.

Furthermore, from the perspective of a social insurance and labor consultant, it is important to note that foreign workers are subject to the Labor Standards Act and the social insurance system. In addition to residency status, it is essential to properly prepare the Notice of Working Conditions, manage working hours, and handle social insurance enrollment procedures.

Since hiring foreign workers requires an understanding of both the Immigration Control Act and labor-related laws, collaborating with experts such as administrative scriveners and social insurance and labor consultants makes it easier to ensure legal compliance and smooth employment management.

Points to Note When Changing or Renewing Residence Status

If a foreign worker’s career path or job duties change, their current residence status may no longer be sufficient. In such cases, an application for permission to change residence status may be required.

For example, if a company hires an international student as a full-time employee after graduation, their status must be changed from “Student” to a residence status that permits employment. Additionally, if job duties change significantly due to a job change, it is necessary to verify the compatibility with the residence status.

Furthermore, since periods of stay are limited, it is important to file renewal applications at the appropriate time. If renewal is not granted, the individual cannot continue working. Companies should not leave this to employees but should manage these deadlines themselves.

Summary

Residence status serves as the legal foundation for foreign nationals to live and work in Japan and is one of the most critical factors to verify when hiring foreign workers. Since the permitted activities and scope of employment differ by residence status, companies must conduct thorough verification before hiring.

Furthermore, even after hiring, companies must continuously monitor the validity period of the residence status and verify its alignment with the employee’s job duties. Proper management of residence status not only ensures legal compliance but also helps create a work environment where foreign employees can work with peace of mind.

Since decisions regarding the employment of foreign nationals require specialized knowledge, it is important to consult with experts such as administrative scriveners or social insurance and labor consultants if you have any concerns, in order to establish a legal and smooth employment system.