Key Points and Impact of the 2024 Immigration Control Act Revision – How Will the Employment and Residency System for Foreign Nationals Change?

With the revision of the Immigration Control Act in 2024, the employment and residency system for foreign nationals has undergone significant changes. In particular, the abolition of the Technical Intern Training Program, the establishment of a new residency status, and the optimization of the Specified Skilled Worker system have had a major impact on companies hiring foreign workers and support organizations.

This article provides a clear explanation of the main points of the Immigration Control Act revision and its impact.

1. Abolition of the Technical Intern Training Program and Establishment of the “Developmental Employment" System

Why was the Technical Intern Training Program abolished?

The Technical Intern Training Program was originally intended to transfer technology to developing countries. However, in reality, it was often used as a source of cheap labor, leading to issues such as low wages, poor working conditions, and the disappearance of trainees.

What is Developmental Employment?

“Developmental Employment" is a new system aimed at career development for foreign workers and addressing Japan’s labor shortages. Key features include:

• More practical work opportunities compared to the Technical Intern Training Program
• Wages and working conditions that meet the same standards as Japanese workers
• The possibility of transitioning to Specified Skilled Worker No. 1 if certain conditions are met
• Stronger support systems to better protect foreign workers’ rights

2. Optimization of the Specified Skilled Worker System

To facilitate the acceptance of foreign workers, the Specified Skilled Worker system has been optimized. A major change is that external support for Specified Skilled Worker No. 1 must now be outsourced exclusively to registered support organizations.

This change ensures appropriate support for foreign workers and is expected to resolve issues such as excessive fees charged by brokers and insufficient assistance.

3. Stricter Penalties for Encouraging Illegal Employment

In Japan, hiring or brokering illegal employment is a criminal offense, punishable under the “Crime of Encouraging Illegal Employment." This revision has strengthened the penalties:

• Imprisonment increased from up to 3 years to up to 5 years
• Fines increased from up to 3 million yen to up to 5 million yen

Employers and business owners must now take stricter measures to verify proper residency status and manage employment properly.

4. Stricter Regulations on Permanent Residency

Previously, permanent residency was relatively easy to obtain if a person met the required residency period and fulfilled tax obligations. However, this revision has introduced stricter criteria, including new reasons for revoking permanent residency.

New Grounds for Revocation

• Violation of obligations under the Immigration Control Act
• Intentional non-payment of taxes or social insurance contributions
• Serious violations of criminal law

As a result, even permanent residents must strictly comply with Japan’s laws and social rules to avoid the risk of losing their status.

5. Impact of the Revision and Future Outlook

With this revision, Japan’s system for accepting foreign workers has changed significantly. Key impacts include:

Impact on Businesses and Employers

• A need for companies to understand the new system when hiring foreign workers
• Ensuring appropriate support structures when using “Developmental Employment" or “Specified Skilled Worker" programs
• Stronger employment management to prevent illegal employment

Impact on Foreign Workers

• Better protection of fair working conditions
• Easier career advancement through smoother transitions to the Specified Skilled Worker system
• Increased importance of complying with laws due to stricter permanent residency requirements

Future Outlook

With this revision, Japan is shifting towards treating foreign workers as partners rather than just a labor force. Further legal revisions and improvements in the system may continue, making it essential to stay updated with the latest information.

Conclusion

The 2024 revision of the Immigration Control Act introduced important changes, including the establishment of “Developmental Employment," optimization of the Specified Skilled Worker system, stricter measures against illegal employment, and stricter permanent residency requirements.

As Japan moves toward a fairer and more transparent system for accepting foreign workers, both businesses and foreign residents need to understand the new system and respond appropriately.

Immigration Lawyer ONE STOP OFFICE provides support for obtaining residency status and visa applications for foreign nationals. If you have any questions regarding the Immigration Control Act revision, feel free to contact us!