Japan to ease foreign trainee job transfer rules by Oct amid record exits | Personal Finance #JapanFinance

“Japan aims to have a harmonious society and be a nation attractive to foreign workers,” Prime Minister Fumio Kishida had said then.

What are the changes for foreign trainees?

Under Japan’s current technical intern programme, foreign workers are generally prohibited from switching jobs during their first three years. However, exceptions are made for “unavoidable circumstances.” This policy has been criticised for its vagueness, with many trainees facing exploitation without a clear path to change employers.

To address this, the Immigration Services Agency is revising its guidelines. These changes will allow job transfers if trainees face abuse, sexual harassment, or other serious violations of laws and contracts. The new guidelines will also permit both victims of harassment and their colleagues to request transfers. Additionally, interns will be allowed to work part-time for up to 28 hours a week while in the process of switching jobs, to help cover living expenses.

The number of foreign trainees leaving their jobs without notice has been steadily increasing, from 5,885 in 2020 to 9,006 in 2022, with 2023 seeing a further rise. Vietnamese workers made up the largest group, with 5,481 leaving their jobs, followed by 1,765 from Myanmar and 816 from China, according to figures from the Justice Ministry.

Special provisions for specified skilled workers

The revised guidelines will include a special provision for trainees who cannot find a new employer. They will be able to temporarily switch to the “specified skilled worker” scheme, which allows them to work under a designated activities visa until they pass the necessary exams to obtain the status.

The technical intern programme, which has been in place since 1993, has faced heavy criticism, with many saying it has become a way for Japan to import cheap labour. However, the Japanese government plans to replace this system by 2027 with one that permits job transfers after just one or two years of employment at a single workplace.

Low Indian participation in Japan’s workforce

While Japan’s foreign trainee programme attracts large numbers of workers from Vietnam, Indonesia, and the Philippines, the presence of Indian workers remains low. As of April 2024, the Ministry of Justice reported 46,262 Indian nationals living in Japan, with most working in IT and creative industries in Tokyo.

India’s ambassador to Japan, Sibi George, expressed optimism at an event at the Indian Embassy in 2023, saying, “We will be able to have more Indian workers support Japan’s economic growth in the coming months and years.” Yet, language barriers and comparatively low salaries make other destinations more appealing for Indian workers and students.

According to a report by Nikkei Asia, only 434 Indian nationals were in Japan as technical interns in 2023, with just 120 holding visas under the specified skilled worker programme, a category introduced to address Japan’s labour shortage. This contrasts sharply with over 170,000 Vietnamese, over 40,000 Indonesians, and nearly 30,000 Filipinos participating in the same programme.

Indian students in Japan remain a small number

The low interest extends to education. In 2023, there were just 1,851 Indian students in Japan, compared to over 100,000 Chinese students. Despite both India and China having similar population sizes, this vast difference sheds light on Japan’s unpopularity as a study destination for Indians.

Japan’s reforms to its trainee programme, starting in October, may make the country more appealing

With the upcoming reforms, especially permanent residency, Japan hopes to make the country more appealing to foreign workers and thereby address the labour shortage crisis.

First Published: Sep 24 2024 | 2:55 PM IS