News On Japan

Brokers Prey On Foreign Trainees in Japan

TOKYO - Foreign workers in Japan reached a record of about 2.3 million last year, reflecting chronic domestic labor shortages that have made overseas hires indispensable. At the same time, illegal employment has climbed, with experts pointing to brokers who target technical intern trainees amid reports of workplace harassment and low pay.

A recent segment featuring labor specialists highlighted how illegal employment cases, after dipping to around 6,000 in 2022, exceeded 14,000 last year. Roughly 40% involve short-term visitors overstaying and working without authorization, while about 30% are people who entered with valid statuses—such as student work permits or other employment categories—but later dropped out as debt or unexpected living costs mounted.

Brokers exploit those pressures. According to lawyers who handle foreign-labor cases, some agents tell unauthorized workers they can “secure a job,” promise refunds if placement fails, and then demand “interview referral fees” of 500,000 to 1,500,000 yen. Technical intern trainees are a particular target because the current program tightly restricts job changes, leaving trainees little room to exit abusive or underpaid workplaces.

The technical intern training program, launched in 1993, channels company openings through supervising organizations and overseas sending agencies. Applicants typically pay 300,000 to 500,000 yen in fees to the sending side, even though there are no formal requirements for education or Japanese-language testing. Because these fee practices are governed abroad, Japanese authorities have limited leverage. Some countries, such as the Philippines, prohibit charging workers and require the receiving side to bear costs, but in many other jurisdictions the burden still falls on the trainee.

Structural issues compound the vulnerability. Transfers are in principle prohibited; even in recognized hardship cases, trainees generally must move only within the limited set of companies tied to their supervising organization—of which there are more than 4,000—narrowing options and strengthening brokers’ leverage. Compliance on the employer side is also uneven: a labor ministry survey has found that over 70% of companies accepting interns have committed some form of legal violation, underscoring the breadth of the problem.

To address these gaps, the government plans to replace the current program with a new “training and employment” framework on April 1, 2027. Under the proposal, trainees would be allowed to change employers once certain conditions are met, such as completing at least one year at the initial workplace; Japanese-language ability would be required; and newly designated support agencies would oversee fewer foreign workers per staff member to provide closer assistance. Experts say the changes could improve mobility and working conditions by nudging employers to offer better pay and treatment to retain workers. They also caution that outcomes will depend on how transfer rules are applied in practice and whether enforcement against illegal brokering is tightened, since penalties are still seen as relatively light—for example, reentry bans of five years for offenders—and staffing these support bodies will raise costs.

Amid these policy shifts, some institutions are trying to raise skill levels and match labor demand more safely. A driving school in Saitama has begun helping foreign residents obtain professional licenses to work as drivers in Japan, and since July has partnered with a school in Tokushima to offer Vietnamese candidates a curriculum that teaches Japan’s traffic rules before arrival. The school has also hired and trained Vietnamese instructors, reflecting the growing need for on-the-ground support as foreign employment deepens across retail, construction and services.

Ultimately, specialists argue that curbing illegal work will require a mix of stricter action against brokers, clearer and more practicable transfer pathways under the new system, and better pay and conditions so workers choose to stay with compliant employers rather than seek risky alternatives.

Source: サン!シャイン公式ch.

News On Japan
POPULAR NEWS

Record rainfall caused 19 rivers to overflow across Fukui Prefecture, flooding roads and homes, triggering landslides and temporarily forcing authorities to issue the highest-level heavy rain emergency warning from early Sunday morning.

Drones were used to deliver food and daily necessities to an isolated mountain community in Himi City, Toyama Prefecture, on August 30 after torrential rain triggered a landslide that cut off road access, while volunteers continued flood recovery work in neighboring Ishikawa Prefecture.

Two typhoons east of Japan were moving northward on August 30, with Typhoon No. 23 (Banlan) overtaking Typhoon No. 22 (Artau), although neither storm is expected to have a direct impact on Japan.

A 9-minute, 13-second drone video filmed inside Aeon Mall Kumamoto two days after the deadly explosion has provided a detailed view of the destruction, showing collapsed ceilings, heavy dust and widespread damage that may have affected between one-third and nearly half of the shopping center.

Strong Typhoon No. 18 was moving northwest through the East China Sea on the night of August 26, gradually pulling away from Okinawa and the Amami Islands as lingering rain, strong winds and high waves were expected to ease. As of 9 p.m. on August 26, the typhoon was over waters north-northwest of Kume Island and moving northwest.

MEDIA CHANNELS
         

MORE Business NEWS

Toyota Motor plans to introduce passenger vehicles equipped with advanced automated driving technology from 2028, allowing drivers to travel with almost no manual operation, including taking their hands off the steering wheel on ordinary roads.

Consumer prices in central Tokyo rose 1.8% in August from a year earlier, with the pace of inflation accelerating for a third consecutive month as higher food prices continued to put upward pressure on household costs.

Tokyo stocks rose on August 28, with the Nikkei 225 closing at 66,405.56, up 273.58 points, or 0.41%, as information-technology, software, automaker and selected semiconductor-related shares gained after a U.S. technology rally, while investors remained cautious before Federal Reserve Chair Kevin Warsh’s Jackson Hole speech.

Japan's toy market continues to expand despite the country's declining number of children, reaching a record 1.1664 trillion yen in fiscal 2025 as manufacturers increasingly target adults and introduce products reflecting social issues ranging from sustainability to investment.

Tokyo stocks slipped on August 27, with the Nikkei 225 closing at 66,131.98, down 130.18 points, as early buying in artificial intelligence and semiconductor-related shares following Nvidia’s strong earnings forecast faded into profit-taking, while the broader TOPIX edged higher for a sixth straight session.

Seven-Eleven Japan and Yamato Transport announced on August 26 that they will introduce self-service shipping machines allowing customers to send parcels without lining up at a staffed checkout counter.

Tokyo stocks rose on August 26, with the Nikkei 225 closing at 66,262.16, up 405.73 points, or 0.62%, as investors bought back selected semiconductor and financial shares, although trading was thin ahead of Nvidia’s earnings and uncertainty remained over artificial intelligence valuations, the yen and Bank of Japan policy.

Tokyo stocks fell on August 25, with the Nikkei 225 closing at 64,980.53, down 0.8%, as investors sold semiconductor and electronics shares ahead of Nvidia’s earnings while a weak yen, elevated bond yields and renewed U.S. pressure on Iran kept risk appetite subdued.