When you dismiss or decline to renew a foreign worker — status of residence and moving to "Designated Activities (departure preparation / job hunting)"

Bottom line first: The labor procedures for dismissing or not renewing a foreign worker—dismissal notice (Article 20 of the Labor Standards Act), loss of social-insurance and employment-insurance status, and the separation slip—are basically the same as for a Japanese worker. What differs is that the worker's "residence" moves afterward. Because a work status is tied to the job (the activity), if the worker stays for three months or more without a legitimate reason without performing the activity for which the status was granted, the status of residence may be revoked (Article 22-4, paragraph 1, item 6 of the Immigration Control and Refugee Recognition Act). If the worker will leave Japan, "Designated Activities (departure preparation)"; if they will look for the next job in Japan, job hunting within the remaining period of stay or a move to "Designated Activities (job hunting)" is considered. The notification regarding the contracting (affiliating) organization on leaving or changing jobs is filed, within 14 days, by the worker rather than the employer (Article 19-16). The dismissal notice and the various loss procedures and advice on work rules are the field of a Shakai Hoken Roumushi, the validity of a dismissal or an unfair-dismissal dispute the field of a lawyer, and the change of status of residence or acting as application agent the field of a Gyoseishoshi; where the matter crosses entities, each is contracted separately as an independent business entity.

When you dismiss or decline to renew a foreign worker, what differs from a Japanese worker?

The Labor Standards Act and the Labor Contract Act apply regardless of nationality. So the dismissal notice (Article 20 of the Labor Standards Act), the non-renewal procedure, and the loss of social-insurance and employment-insurance status all proceed by the same steps as when you let a Japanese worker go. Being a foreign national does not make dismissal easier, nor does it add specially heavy procedures.

What differs is that the worker's status of residence moves after the employment ends. Work statuses such as "Engineer/Specialist in Humanities/International Services" or "Specified Skilled Worker" are granted on the premise of performing a particular activity—the job at that company. When the worker leaves, the basis for that activity disappears. The status of residence and the period of stay are not automatically lost at the moment of leaving, but if the worker stays for three months or more without a legitimate reason without continuing the activity for which the status was granted, this may amount to a ground for revoking the status of residence (Article 22-4, paragraph 1, item 6 of the Immigration Control and Refugee Recognition Act; a case where there is a legitimate reason for not performing the activity is excluded, and the period of looking for the next job is generally understood to fall within this "legitimate reason").

So even though the employer's labor procedures are the same as for a Japanese worker, for the departing worker a separate problem—"what to do about residence"—arises at the same time. How to align the period of stay and the term of the employment contract at the hiring and renewal stage is set out in how to align the period of stay and the employment-contract term; this article narrows to the end stage of dismissal and non-renewal.

How do you proceed with the dismissal notice, loss of social-insurance status, and the separation slip?

Regardless of nationality, the labor-side procedures are as follows. Because the deadlines run against the date of leaving, they are organized in the table.

Procedure	Content	Deadline / where to file
Dismissal notice	Give notice at least 30 days in advance, or pay average wages for 30 days or more (dismissal-notice allowance) if not. You may combine, reducing the allowance by the number of days of notice given	Article 20 of the Labor Standards Act. No notice is needed for a person within a 14-day trial period, etc., under Article 21
Non-renewal notice	When not renewing a person whose fixed-term contract has been renewed three times or more, or who has been continuously employed for over one year, give notice 30 days in advance	Standards on the conclusion, renewal, and non-renewal of fixed-term labor contracts (Ministry of Health, Labour and Welfare Notice No. 357 of 2003)
Loss of social-insurance status	Notification of loss of insured status for health insurance / employees' pension insurance	Within 5 days of the day after the leaving date / Pension Office
Loss of employment-insurance status	Notification of loss of insured status plus the separation certificate	Within 10 days of the day after the leaving date / Hello Work
Notification of foreign-worker employment status (leaving)	Notify name, status of residence, period of stay, etc. If the worker is insured under employment insurance, it can be combined via the remarks column of the loss notification	Article 28 of the Act on Comprehensively Advancing Labor Measures. If not insured, by the end of the month following the leaving date

When you submit the separation certificate, Hello Work issues the separation slip to the worker. The separation slip is the document the worker needs to receive unemployment benefits (the basic allowance). Even if the worker plans to leave Japan, if they request it, issue it; do not, in principle, omit it. Note that a foreign worker's unemployment benefits presuppose meeting the eligibility requirements (period as an insured person, intention to seek work) and having a status of residence that permits work, and in principle cannot be received after the status changes to one that does not permit work.

When you let a foreign worker on a work status go, what happens to their residence?

Leaving does not lose the status of residence or period of stay immediately. If the period of stay remains, the worker can choose their next course within that period. The options fall into three broad types.

First, changing to a job within the range permitted by the same status of residence. For example, a person on "Engineer/Specialist in Humanities/International Services" who moves to another company in the same field does not need to change the status. But whether the post-change job falls within that status depends on the case, so it helps to obtain a "certificate of authorized employment" confirming the content of the contract with the new company, which makes trouble at the next renewal easier to avoid (this judgment is the domain of the Immigration Services Agency and the Gyoseishoshi who acts as application agent).

Next, looking for the next job within the remaining period of stay. As above, where there is a legitimate reason, a certain period of not performing the activity does not immediately cause revocation, but when the period of stay expires, the worker must choose to renew, change, or leave.

Finally, leaving Japan, or being unable to find a job with the period of stay running out. This is where the "Designated Activities" explained next come in. Whether the dismissal itself is contested is a separate matter; for how to divide where to consult about a dismissal, see where to consult about a dismissal.

What does moving to "Designated Activities (departure preparation / job hunting)" mean?

"Designated Activities" is a status of residence in which the Minister of Justice designates activities for each individual foreign national. In the dismissal/non-renewal context, what is usually at issue is the "non-notified Designated Activities" that are not in the public notice; because they are designated based on individual circumstances, they are not recognized automatically just because someone has left. Two representative types are organized below.

Type	Assumed situation	Whether work is permitted (general position)
Designated Activities (departure preparation)	When preparation to return home is needed, such as the period of stay expiring or a renewal/change being refused	In principle, work is not permitted. The period granted and whether work is permitted depend on the entries in the designation letter
Designated Activities (continued job hunting)	When a worker who lost the job through no fault of their own cannot find the next job within the remaining period of stay, etc.	In principle, work is not permitted. Part-time work within the scope of permission for activities outside status may be possible

The departure-preparation Designated Activities is a short period of stay for winding up affairs toward returning home; it is generally said that around 30 days is granted, but the specific period and whether work is permitted must be confirmed in the designation letter and cannot be stated uniformly (individual operation is treated as unverified, with no definitive figure shown).

The Designated Activities to continue job hunting is applied for by a person who, through no fault of their own—such as dismissal due to bankruptcy or business downsizing—has found it difficult to work, in order to continue seeking work in Japan. Whether it is recognized depends on the individual examination. Separately, there is a work-permitting framework, "Designated Activities (employment-continuation support)," for persons aiming to move from a technical intern or certain statuses to "Specified Skilled Worker (i)," and the Immigration Services Agency lists persons who have found activity continuation difficult due to dismissal, etc., as one of the eligible categories (period of stay one year; renewable up to twice only in certain cases; accessed 4 November 2026). But this is limited to the specific route of moving to Specified Skilled Worker. For any of these Designated Activities, the judgment of whether one qualifies and the application are the domain of the Immigration Services Agency's examination and the Gyoseishoshi or lawyer who acts as application agent.

Who files the notification regarding the contracting organization, and when?

This is an easy point to get wrong. The residence-management notifications on leaving or changing jobs include one filed by the worker and one filed by the employer.

What the worker files is the notification regarding the contracting (or affiliating) organization. A mid-to-long-term resident on a contract-based work status such as "Engineer/Specialist in Humanities/International Services," "Skilled Labor," or "Specified Skilled Worker" has a duty to notify the Commissioner of the Immigration Services Agency within 14 days of the day each event arises—when the contract with the contracting organization ends, and when a new contract is concluded (Article 19-16, item 2 of the Immigration Control and Refugee Recognition Act). A person on a status performed through affiliation with an organization, such as "Business Manager" or "Student," notifies under item 1 of the same Article, likewise within 14 days, treating leaving as departure and changing jobs as transfer. Where the worker leaves and moves to another company, "termination of the contract (departure)" and "conclusion of a new contract (transfer)" are each a separate ground for notification. These are the worker's duties, not something the employer files on their behalf.

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What the employer files is the aforementioned notification of foreign-worker employment status (leaving) (Article 28 of the Act on Comprehensively Advancing Labor Measures). Separately, the Immigration Act has a notification by the accepting organization (Article 19-17), but organizations with a duty to file the notification of foreign-worker employment status are excluded from its scope, and there is no penalty for not filing it. So the notification an ordinary company should reliably make on dismissal or leaving is the notification of foreign-worker employment status to Hello Work. The practice of the notification is set out in notification of foreign-worker employment status. For the whole picture of foreign-worker labor from hiring to leaving, see also the guidelines for employing foreign nationals and the employer's duty of effort.

Who do you ask for judging the validity of a dismissal and for the residence procedures?

This situation splits by the governing law.

In charge	Work	Basis/position
Shakai Hoken Roumushi	Dismissal notice and calculating the dismissal-notice allowance, loss of social-insurance and employment-insurance status, the separation slip, the notification of foreign-worker employment status, arranging work rules	The field of labor and social insurance
Lawyer (Bengoshi)	Judging the validity of a dismissal or non-renewal, disputes and negotiations over unfair dismissal or unpaid wages	Legal judgment and disputes
Gyoseishoshi (application agent)	Preparing documents for and acting as agent in applications to change the status of residence (Designated Activities, etc.) or for a certificate of authorized employment	An application under the Immigration Act; a Shakai Hoken Roumushi cannot act as agent for a residence application
Immigration Services Agency	Judging applicability of the status of residence and whether to grant a change	The final judgment is the Agency's

A Shakai Hoken Roumushi cannot make the legal judgment of whether a dismissal is valid, nor act as agent for a change-of-status application. The validity of a dismissal is, premised on the labor design of arranging work rules, the employment contract, and the dismissal reasons, ultimately the domain of a lawyer's judgment and the courts. The change of residence is the domain of the Gyoseishoshi (application agent) and the Immigration Services Agency. A Shakai Hoken Roumushi arranges the labor procedures, residence goes to a Gyoseishoshi, and disputes to a lawyer. Where the matter crosses entities, each is contracted separately as an independent business entity, and there is no referral fee.

Frequently asked questions

Q. When dismissing a foreign worker, are more procedures needed than for a Japanese worker?
A. The labor procedures themselves are the same as for a Japanese worker. The dismissal notice (Article 20 of the Labor Standards Act), the loss of social-insurance and employment-insurance status, and the issue of the separation slip all follow the same steps regardless of nationality. On the employer side, the foreign-worker-specific procedure that is reliably needed is the notification of foreign-worker employment status (leaving) to Hello Work (Article 28 of the Act on Comprehensively Advancing Labor Measures). If the worker is insured under employment insurance, it can be combined via the remarks column of the loss notification; if not insured, file by the end of the month following the leaving date. Notifications about the status of residence are filed by the worker, not something the employer files on their behalf.

Q. Once I let them go, does their status of residence become invalid immediately?
A. No; the status of residence and period of stay are not automatically lost at the moment of leaving. But because a work status presupposes the job (the activity), if the worker stays for three months or more without a legitimate reason without performing the activity for which the status was granted, the status of residence may become subject to revocation (Article 22-4, paragraph 1, item 6 of the Immigration Control and Refugee Recognition Act). While looking for the next job is generally understood to fall within this "legitimate reason," once the period of stay expires the worker must choose to renew, change, or leave.

Q. With "Designated Activities (departure preparation)," may I let the worker do part-time work until they leave?
A. In principle, the departure-preparation Designated Activities does not permit work. The period granted and whether work is permitted are determined by the entries in the designation letter issued to the individual, so the designation letter must be checked. You cannot, in principle, employ the worker on the premise of a bridging part-time job until departure; confirm in the designation letter whether work is permitted. If in doubt, confirming with the Gyoseishoshi who acts as application agent or with the Immigration Services Agency is the sure route.

Q. Does the company file the residence-status notification after the worker leaves?
A. The notification regarding the contracting (affiliating) organization is the worker's duty to file (Article 19-16 of the Immigration Control and Refugee Recognition Act). The worker files it with the Immigration Services Agency within 14 days of the day each event arises—leaving = termination/departure, changing jobs = conclusion of a new contract/transfer. The company does not file it on their behalf. What the company files is the notification of foreign-worker employment status (leaving) to Hello Work. The Immigration Act's notification by the accepting organization (Article 19-17) excludes companies with a duty to file the notification of foreign-worker employment status.

Basis for this article

• Labor Standards Act (Act No. 49 of 1947), Article 20 — when dismissing a worker, the employer must give notice at least 30 days in advance or pay average wages for 30 days or more (dismissal-notice allowance); the number of days of notice may be shortened by the number of days for which average wages are paid
• Same Act, Article 21 — the dismissal-notice provision does not apply to a person employed by the day, a person employed for a fixed term of two months or less, a person within a trial period (except where employment continues beyond 14 days), etc.
• Standards on the conclusion, renewal, and non-renewal of fixed-term labor contracts (Ministry of Health, Labour and Welfare Notice No. 357 of 2003) — where not renewing a worker whose fixed-term contract has been renewed three times or more, or who has worked continuously for over one year, give non-renewal notice at least 30 days before the end of the contract term
• Health Insurance Act / Employees' Pension Insurance Act — the notification of loss of insured status is filed with the Pension Office within 5 days of the day after the leaving date. Employment Insurance Act — the notification of loss of insured status and the separation certificate are filed with Hello Work within 10 days of the day after the leaving date, and the separation slip is issued to the worker
• Act on Comprehensively Advancing Labor Measures and Stabilizing the Employment of Workers and Enriching Their Working Lives (Act No. 132 of 1966), Article 28 — the employer notifies Hello Work of the name, status of residence, period of stay, etc., when hiring and when a foreign worker leaves
• Immigration Control and Refugee Recognition Act (Cabinet Order No. 319 of 1951), Article 19-16 — notification regarding the contracting organization (item 2) and regarding the affiliating organization (item 1); the mid-to-long-term resident themselves notifies the Commissioner of the Immigration Services Agency within 14 days of the day the termination or conclusion of a contract, or departure from or transfer of the affiliating organization, etc., arises
• Same Act, Article 19-17 — notification by the accepting organization; however, organizations with a duty to file the notification of foreign-worker employment status are excluded from its scope, and there is no penalty for not filing it (Immigration Services Agency guidance; accessed 4 November 2026)
• Same Act, Article 22-4, paragraph 1, item 6 — where a person staying under an Appended Table I status of residence stays, without a legitimate reason, without continuing the activity corresponding to the status of residence for three months or more (six months for Highly Skilled Professional (ii)), the status of residence may become subject to revocation
• Immigration Services Agency, "Where continuation of activities is difficult due to unavoidable circumstances (Designated Activities (employment-continuation support))" — a mid-to-long-term resident, etc., who has found activity continuation difficult due to dismissal, etc., may be allowed to change to "Designated Activities (work permitted)" until passing the examination, if aiming to move to Specified Skilled Worker (i) (period of stay one year; renewable up to twice only in certain cases). Accessed 4 November 2026
• Statutory provisions checked on e-Gov Law Search, and the Immigration Services Agency guidance on the official site, both on 4 November 2026. Whether Designated Activities (departure preparation / continued job hunting) is granted, its period, and whether work is permitted are designated individually by the Minister of Justice as non-notified activities, and rest on the entries in the designation letter and the judgment of the Immigration Services Agency and the Gyoseishoshi who acts as application agent (definitive operation is not shown uniformly, treated as unverified)

This article does not determine whether any particular case qualifies. 四葉社会保険労務士事務所 can advise on the dismissal notice and calculating the dismissal-notice allowance, the loss of social-insurance and employment-insurance status, the separation slip, the notification of foreign-worker employment status, and arranging work rules, in connection with the dismissal or non-renewal of a foreign worker. We refer the validity of a dismissal or non-renewal and disputes over unfair dismissal or unpaid wages to a lawyer; preparing documents for and acting as agent in applications to change the status of residence (Designated Activities, etc.) or for a certificate of authorized employment to a Gyoseishoshi (application agent); and the final judgment on applicability of the status of residence to the Immigration Services Agency. Where a different professional is needed, each is contracted separately as an independent business entity, and there is no referral fee. Fees are set out in the fee schedule, and frequently asked questions in the FAQ.

This article is general information. Individual determinations are made by a qualified professional after a consultation, in light of individual circumstances. Written by Joji Uramatsu (Shakai Hoken Roumushi, Gyoseishoshi, Registered Real Estate Transaction Specialist).