Article 16 of the Labor Standards Act prohibits labor contracts that stipulate the amount of penalties or damages to be paid in the event of non-performance, such as “If you damage company property, you will pay XXX yen” or “If you resign within XXX years, you will pay XXX yen.” 

While companies are not obligated to cover costs incurred when workers come to work in Japan, they may bear some expenses for workers’ benefit. 

For example: 

1. Airfare to Japan 
2. Status of residence application fees
3. Housing costs in Japan 

In such cases, you may be asked to sign a contract stating “We are lending you money, but you do not need to repay it if you work for X years”. 

When a company provides necessary funds to workers, it does not constitute money lending, meaning such contracts are not illegal. 

However, when a registered support organization or supervising organization provides funds, it falls under money lending and requires a money lending license. Lending without a license is illegal. 

The Specified Skilled Worker and Technical Intern Training systems have stricter provisions than Article 16 of the Labor Standards Act, and contracts requiring payment due to leaving these programs may violate the Ministerial Order on Specified Skilled Worker Criteria or the Technical Intern Training Act. 

Workers are under no obligation to sign a contract stating “You must repay costs borrowed from the company at the time of hiring if you quit within X years”. 

If a company refuses to make a job offer unless you sign such a contract, it may be better not to work for that company. Companies that impose conditions on quitting likely have other problems as well. Think carefully before entering into a contract. 

Companies invest significant costs in recruiting workers and want them to stay as long as possible. Workers can also earn stable income by acquiring a variety of skills in the same workplace. Working at the same company for a long time has many benefits for both the company and the worker. Choose your job carefully so that you can work there for a long time. 

Glossary 

Salary: Money received by workers from employers as compensation for labor 

Working hours: The time from start to end of work as defined in the company’s employment regulations. 

Contract: A legal act established through the agreement of intention between two or more parties 

Contract document: A document that proves a contract has been entered into 

Breach of contract: When a party fails to execute the terms of a contract without a valid reason. 

Penalty: Monetary compensation that one party can receive if the other party breaches the contract 

Damages: Compensation provided by the party that has caused damage to the other party to restore the situation to what it would have been without the damage 

Status of residence application fees: Costs incurred when applying for status of residence More costs are involved if you request a lawyer or administrative scrivener to handle the application. 

Housing costs: When renting housing, you will need to pay a security deposit, key money, advance rent, brokerage fees, fire insurance premiums, and more before moving in. 

Money lending: Engaging in the lending of money or mediating such lending as a business. 

Registered support organization: An organization that supports the hiring of foreign workers under the Specified Skilled Worker System 

Supervising organization: An organization that takes in technical intern trainees and provides support for their work and the companies that hire them. 

Quitting: Leaving a job due to resignation or being fired 

Ministerial Order on Specified Skilled Worker Criteria: Ministerial Order to Provide for Criteria for the Employment Contract for Specified Skilled Workers and Support Plan for Specified Skilled Workers (i) 

Technical Intern Training Act: Officially the Act on Proper Technical Intern Training and Protection of Technical Intern Trainees, this law regulates the Technical Intern Training system. 

Signing a contract: When two parties agree to a contract, treaty, or agreement. 

Costs and Precautions on Technical Internship

For those who are interested in technical intern training and have some questions, such as ‟how much does technical intern training really cost?” or ‟I am charged a high fee, is this okay?”, here are the costs and points to be careful of for technical intern training.

What is a Specified Skilled Worker? What are the Requirements and How to Obtain it?

Is it true that there is a Status of Residence that allows you to work in Japan regardless of your education or work experience? For those who are interested in this visa, please refer to the Status of Residence for Specified Skilled Worker.