[Blog]"Not Knowing" Is No Excuse: Why Employers Can Still Be Liable for Aiding Illegal Employment

2025-11-17

A recent case reported by The Mainichi described how executives of a food-processing company were arrested for violating Japan’s Immigration Control Act after foreign workers with “Engineer/Specialist in Humanities/International Services” (E/H/I) visas were found performing unauthorized labor in a vegetable processing plant. This incident is not an isolated event but a warning to all employers in Japan. Even if a company president claims to have had no knowledge of illegal work, they can still be held criminally responsible. This article highlights the risks and obligations employers must understand.

What Is the Crime of Aiding Illegal Employment?

Under the Immigration Control Act, aiding or facilitating illegal employment is a criminal offense. This does not only apply to the foreign national who works illegally but also to those who hire, assign, dispatch, or knowingly allow unauthorized work. Corporate officers, managers, and HR personnel with decision-making authority can be held liable. In small and medium-sized enterprises, the owner often carries this responsibility directly.

Why “I Didn’t Know” Does Not Provide Protection

Authorities assess not only whether the employer actually knew about the illegal work but also whether the employer should have known. If an employer failed to check basic documents, ignored inconsistencies, or overlooked suspicious circumstances, they may still be considered negligent. In the reported case, the president claimed ignorance while the HR manager admitted knowing the illegality. The question becomes: did the company have proper systems to verify residence status, check job eligibility, and monitor assignments? Employers have an affirmative duty to prevent illegal work. Negligence or lack of oversight can amount to aiding illegal employment.

Matching Residence Status and Actual Duties: The Most Critical Check

Illegal employment is not limited to overstayers or undocumented individuals. Increasingly, problems arise when foreign nationals with valid residence cards work outside the permitted scope of their visa. For example, the E/H/I visa allows professional and administrative white-collar roles, not simple labor in a factory. Some brokers obtain visas through fake job offers and then deploy workers to unrelated workplaces. Employers must not assume that a valid residence card alone guarantees compliance. The core question is whether the work assigned truly matches the resident status category.

The Risk of Assuming “It’s Outsourced, So We’re Safe”

Many companies mistakenly believe they have no responsibility if foreign workers come through staffing agencies or contractors. However, if the actual work violates visa conditions or the company exercises direct control over workers, the client company may still be liable. Industries like food processing, logistics, cleaning, and construction are especially high-risk due to chronic labor shortages and reliance on dispatch agencies. When illegal employment occurs, investigators will examine what checks were made and who had oversight. Outsourcing does not eliminate employer responsibility.

Essential Compliance Points for Employers

To reduce risk, company leaders should establish mechanisms that verify residence status authenticity, expiration, and—most critically—permitted activities. This verification must occur at hiring and whenever job roles change. Employers should train HR staff and supervisors to recognize visa categories and escalate concerns. When working with staffing agencies, contracts should clearly state obligations regarding legal residence, and employers should request residence card copies or job descriptions as needed. These steps help prevent “unintentional” violations.

Cheap Labor Comes with Hidden and Serious Risks

Cases involving illegal work often feature “cheap labor” as an incentive—workers willing to accept minimum wage or harsh conditions. Behind this may be large broker fees, exploitation, or fraudulent visa schemes. When authorities uncover such practices, companies face severe consequences: criminal charges, loss of business credibility, strained relationships with clients and banks, and long-term hiring difficulties. Cutting corners in foreign labor management exposes companies to far greater costs than any labor savings.

Conclusion: Employers Must Not Remain Ignorant

As highlighted in The Mainichi’s report, illegal employment can occur in any industry. The crucial point is not merely whether an employer claims ignorance but whether they fulfilled their duty to verify residence status and job alignment. Employers must ensure compliance systems are in place and avoid relying solely on frontline staff or outsourcing partners. Illegal employment can arise from negligence and complacency, not just intent. In an era where “not knowing” provides no protection, responsible and lawful management of foreign workers is essential for sustainable business operations.