Facilitating illegal employment: penalties rise to five years and 5 million yen

From 1 April 2027, facilitating illegal employment, including hiring someone whose residence status does not allow the work, is punishable by up to five years' imprisonment, a fine of up to 5 million yen, or both, up from three years and 3 million yen. Not knowing is no defence if the employer failed to check.

Status
Coming up
Effective
1 April 2027
Decided
21 June 2024
Type
Statute amendment
Applies to
All employers that hire foreign nationals, and staffing and placement agencies

What changes

Article 73-2 of the Immigration Control Act punishes anyone who has a foreign national work illegally, places them under their control for that purpose, or arranges such work as a business. The 2024 amendment (Act No. 60 of 2024, promulgated 21 June 2024) raises the maximum penalty from three years' imprisonment or a 3 million yen fine to five years or 5 million yen, with both possible together. The change sits in the main body of the Act and so takes effect on its general date, 1 April 2027, set by cabinet order.

Some commentary says the higher penalty has applied since June 2025. That is not correct: June 2025 is when imprisonment with and without labour were merged into a single sentence of imprisonment under the Penal Code reform. The new maximums apply only to conduct from 1 April 2027.

The knowledge rule is unchanged. An employer cannot escape liability by saying it did not know the person was not permitted to work, unless it was not negligent, and failing to check the residence card is negligence. The company can be fined alongside the individual manager.

Who it applies to

Every employer in Japan, foreign subsidiaries included, and agencies that place or dispatch foreign workers. It covers work outside a person's status, work after the period of stay has expired, and students working beyond their permitted hours.

Action for employers

Sources

General information for employers, not legal advice. Dates and thresholds are checked against the sources listed and dated above; confirm anything you act on with a Japanese employment lawyer or a licensed labour and social security attorney.