This article is written by a Japanese local.
For companies employing foreign nationals, managing the procedures at the time of resignation is just as legally important as the initial visa application. Particularly when an employee holding a Japan work visa, such as “Engineer/Specialist in Humanities/International Services,” resigns for personal reasons, strict reporting obligations mandated by law arise for the company.
This article explains the frequently overlooked reporting duties to the Immigration Services Agency and Hello Work, the severe legal risks companies face if they fail to comply, and the proper practical procedures for handling resignations legally.
1. The Reality of the “Two Reporting Duties” for Companies
When a foreign employee resigns, the most commonly confused requirements are the difference between “Reporting to Immigration” and “Reporting to Hello Work.” Japanese law operates under the following framework:
Principle: “Notification of Employment Status of Foreigners” to Hello Work
Under the Comprehensive Labor Policy Promotion Act, all employers are obligated to submit a “Notification of Employment Status of Foreigners” to Hello Work when a foreign employee leaves the company. If the employee is enrolled in employment insurance, this must be submitted “within 10 days from the day after the resignation.” If they are not enrolled, it must be submitted “by the last day of the month following the resignation.”
[Important] If a company legally fulfills this reporting requirement to Hello Work, the “Notification Concerning the Accepting Organization” to the Immigration Services Agency, stipulated in Article 19-17 of the Immigration Act, is waived (as it is deemed to have been submitted).
Exception: Cases Requiring Direct Reporting to Immigration
If, for any reason, the notification to Hello Work is not made, or if the procedure is delayed because employment insurance does not apply, the company must directly submit a “Notification Concerning the Accepting Organization” to the Immigration Services Agency “within 14 days” of the resignation date. This should be completed promptly online (via the Immigration Services Agency Electronic Notification System) or by mail.
2. Company Penalties for Failing to Report
If a company neglects resignation procedures as if they were dealing with a domestic part-time worker, or makes a false report, they may face not only legal penalties but also severe consequences directly affecting future business operations.
- Application of Criminal Fines: Failing to submit the “Notification of Employment Status of Foreigners” to Hello Work, or submitting a false notification, can result in a fine of up to 300,000 JPY.
- Risk of Aiding Illegal Employment: Failing to track the whereabouts of a resigned foreign employee and leaving the situation unaddressed creates the conditions for that individual to illegally stay and work until their visa expires. This calls the company’s overall management system into question.
- Negative Impact on Future Hiring (Blacklisting): Companies that fail to fulfill their reporting duties are viewed by the Immigration Services Agency as “ineligible organizations unable to properly manage foreign labor.” When attempting to hire new foreign nationals and applying for a COE (Certificate of Eligibility) in the future, the company will face extreme disadvantages, and the risk of denial will skyrocket.
3. Strictly Prohibited Actions and Required Documents Upon Resignation
We clarify the actions companies must absolutely avoid and the documents they must issue during the resignation process for foreign employees.
[Strictly Prohibited] Confiscating the Residence Card or Passport
There are rare cases where a company attempts to force the return of a Residence Card or passport upon resignation, claiming, “We sponsored the visa.” This is a serious criminal act that violates the Immigration Act and other regulations. Foreign nationals are legally required to carry their Residence Card at all times, so it is an absolute rule that the individual retains it even after resignation.
Issuing Documents to Facilitate Career Transition
In order for a resigned foreign national to legally process a “Change of Accepting Organization” or “Visa Renewal” at their next company, objective documentary evidence from their previous employer is indispensable. Please promptly issue the following documents to the individual upon resignation:
- Certificate of Resignation / Separation Notice (Rishoku-hyo)
- Withholding Tax Slip (Gensen-choshu-hyo) – essential for the next visa renewal or change screening.
4. Legal Guidance for the Resigning Employee
Separate from the company’s procedures, the resigning foreign national also has legal obligations. As part of proper labor management, it is highly recommended to instruct the individual on the following two points during the exit interview and provide this information in writing.
- The Employee’s Duty to “Report within 14 Days”: Even if the company reports to Hello Work, the foreign employee is obligated to personally submit a “Notification Concerning the Accepting Organization (Resignation)” to the Immigration Services Agency within 14 days of resigning.
- The “Re-employment within 3 Months” Rule: If an individual holding a work visa remains unemployed for more than 3 months after resigning without a justifiable reason, their visa becomes subject to revocation. Urging them to promptly find their next employer acts as a safeguard against unnecessary legal trouble.
Resignation procedures for foreign employees are not merely internal HR matters; they are directly linked to national immigration administration. Thoroughly ensuring compliance and executing accurate reporting and document issuance is the only way to elevate a company’s legal security.