We explain the notification of foreign employment status, social insurance enrolment and residence card checks that begin on day one, along with practical points for supporting new employees as they settle in.
Once the status of residence has been granted and the employee has entered Japan, the day of joining finally arrives. For the company, however, this is where a new set of practical tasks begins. Hiring a foreign employee involves not only the procedures common to Japanese staff, but also several statutory notifications specific to foreign employment.
Some of these procedures carry statutory deadlines, and penalties may apply if they are not completed. The first step towards a smooth onboarding is for recruitment and general affairs staff to understand the full picture before the joining procedures begin.
In this article, as STEP 6 of the flow of hiring foreign nationals, we summarise the statutory procedures required on joining, residence card checks, social insurance and tax matters, and the key points for supporting employees as they settle into life in Japan. Please note that the specifics of these procedures may change from time to time; for the latest information, please check the official pages of the relevant government authorities.
Whenever a business hires or terminates the employment of a foreign national, it is obliged to submit a Notification of Employment Status of Foreign Nationals to Hello Work (the Public Employment Security Office). This notification exists to help stabilise and improve the employment of foreign workers, and applies to all foreign workers except those holding diplomatic or official status of residence and special permanent residents (see: Notification of Employment Status of Foreign Nationals (Ministry of Health, Labour and Welfare)).
The deadline for the notification differs depending on whether the employee is insured under employment insurance.
When making the notification, please ask the foreign employee to present their residence card or passport so that the details can be confirmed. There is no need to attach a copy of the residence card. Failure to make the notification, or making a false notification, may result in a fine of up to ¥300,000.
The notification can be made either by using the employment insurance notification forms (Form No. 2 / Form No. 4), or by submitting the dedicated Notification of Employment Status of Foreign Nationals (Form No. 3). Electronic filing via e-Gov or the Foreign Employment Notification System is also available.
At the time of joining, it is important to check the details on the residence card once again. Even if it was checked at the interview or selection stage, please have the employee present the original on the day of joining so that the latest status can be confirmed.
The main points to check are as follows.
The residence card contains an embedded IC chip, and by using the Residence Card Reader Application provided by the Immigration Services Agency of Japan (ISA), you can cross-check the information printed on the card against the data on the IC chip and confirm whether it has been forged or altered (see: Residence Card Reader Application (Immigration Services Agency of Japan)).
Whether or not to retain a copy of the residence card should be handled appropriately in accordance with internal rules, from the standpoint of protecting personal information. It is also worth continuing to monitor the period of stay after joining, and speaking to the employee in good time as the renewal date approaches — this also supports retention.
Even for foreign employees, social insurance (health insurance and employees' pension insurance) and employment insurance are applied on essentially the same conditions as for Japanese employees. According to guidance from the Japan Pension Service, anyone under 70 years of age who is regularly employed at a covered workplace becomes an insured person under employees' pension insurance and health insurance, regardless of nationality (see: Japan Pension Service – Covered Workplaces and Insured Persons). A Notification of Acquisition of Insured Person Status must be submitted to the Japan Pension Service (the relevant service centre or pension office) within 5 days of the employment starting.
On the tax side, the treatment of withholding tax may differ depending on the employee's residency status. Because the applicable tax rate changes depending on whether someone is classified as a "resident" or a "non-resident" under the Income Tax Act, we recommend referring to guidance from the National Tax Agency regarding the treatment immediately after entry, and consulting a tax accountant or other specialist where necessary (see: National Tax Agency – Salary etc. Paid to Non-Residents).
Collecting the employee's My Number (individual number) is necessary for social insurance and tax procedures. When a foreign employee completes resident registration at the municipal office, a My Number is assigned. Once this process is complete, please confirm the My Number and manage it appropriately.
To help foreign employees perform well at work from the moment they arrive, supporting the foundations of their daily life alongside their working environment contributes to early retention. Below are some forms of support that companies can consider.
Securing housing When a foreign national rents accommodation in Japan, difficulties can arise in arranging a guarantor or passing the tenant screening. It is worth setting out in advance what support the company can offer — for example, providing company housing or partner properties, or introducing estate agents and guarantor companies with a track record of accepting foreign tenants.
Resident registration and My Number Foreign nationals who enter Japan or move into a municipality are required to complete resident registration at the local government office where they live. Because the My Number is assigned on the basis of resident registration, please encourage employees to complete this promptly so that social insurance and tax procedures can proceed.
Opening a bank account A bank account is needed for salary payments. Depending on the financial institution, several documents may be required in addition to the residence card and passport, such as a certificate of residence. As preparing these documents can take time immediately after arrival in Japan, it is advisable to explain this early, during onboarding orientation.
Onboarding orientation Set out clearly the points that foreign employees tend to find particularly difficult to follow, such as work rules, internal policies and emergency contact procedures, and make use of Easy Japanese (plain Japanese) or multilingual materials where needed. Careful explanation on both the language and cultural fronts has a significant effect on subsequent retention.
📋 Do you have questions about how to proceed with the joining procedures?
If you have any questions about preparing to accept a foreign employee — such as the timing of the Notification of Employment Status of Foreign Nationals, social insurance enrolment procedures, or how to check a residence card — please feel free to consult us. To start, please feel free to get in touch.
The real work of onboarding as a company begins once the status of residence has been granted. The Notification of Employment Status of Foreign Nationals, the residence card check, and the social insurance enrolment procedures each come with their own deadlines and points to watch. Because gaps in these procedures can sometimes lead to trouble or penalties, we recommend preparing a checklist before the joining date and allowing plenty of time to work through it.
We cover the full picture of hiring foreign nationals in the flow of hiring foreign nationals, and the mindset for considering recruitment in hiring foreign nationals starts before the visa application. Retention support after joining (STEP 7) will be covered in the article that follows.
🧭 We provide one-stop support from recruiting foreign talent through to onboarding
Our foreign talent recruitment service provides comprehensive support for your company's foreign recruitment, from visa application support through to settling-in support after joining. Why not start with our self-check on whether you're ready to accept a foreign employee?
