Penalties for employers hiring illegal residents?

¥3,000,000
Max fine
3 years
Max imprisonment
5 years
Hiring ban
s. 73-2
Immigration Act
The Short Answer

Employers in Japan who hire illegal residents face fines up to ¥3 million, imprisonment up to 3 years, or both — and may be banned from hiring foreign workers for up to 5 years.

What the Law Says

Japan strictly prohibits employers from hiring foreign nationals who lack valid residence status or work authorization. Violations trigger criminal penalties and administrative sanctions under the Immigration Control and Refugee Recognition Act.

Under Section 73-2 of the Immigration Control and Refugee Recognition Act, any person who employs a foreign national knowing that the person is staying illegally — or without permission to engage in the activity — commits an offense.

The law applies whether the employer directly hires the individual or uses a subcontractor or staffing agency. Employers must verify residence status and work eligibility before hiring — including checking the Residence Card and work permission endorsement.

Penalties include imprisonment with labor for up to three years, a fine of up to three million yen, or both. In addition, the Minister of Justice may issue an administrative order prohibiting the employer from accepting or employing foreign nationals for up to five years.

Statutory Text

Any person who employs a foreign national knowing that the foreign national is staying illegally in Japan, or who employs a foreign national without permission to engage in the activity, shall be punished by imprisonment with labor for not more than three years or a fine of not more than three million yen, or both.

Immigration Control and Refugee Recognition Act, s. 73-2 — Penalty for employment of illegal residents

What to Do

1

Before hiring any foreign national, confirm their Residence Card (in Japanese) and check the 'Permitted Activities' field for authorized work scope.

2

Verify work permission status online via the Ministry of Justice’s Foreign Residents Portal or consult with immigration authorities if uncertain.

3

Keep copies of verified documents for at least 3 years — failure to retain records may lead to separate administrative penalties.

4

If you discover an employee lacks valid status, immediately cease employment and report to the Regional Immigration Services Bureau.

5

Attend official employer compliance seminars offered free by the Ministry of Justice to stay updated on legal obligations.

Sources

Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.