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Home News Japan enacts laws for new foreign worker scheme amid labor crisis

Japan enacts laws for new foreign worker scheme amid labor crisis

by Celia

Japan has taken significant steps to address its labor crisis by enacting new laws aimed at reforming its foreign worker scheme. On Friday, Japan’s parliament passed revised legislation intended to replace the contentious foreign trainee program with a system designed to encourage longer stays for foreign workers. This move comes amidst a severe labor shortage exacerbated by Japan’s aging population.

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Key changes in the legislation include provisions allowing for greater flexibility in changing workplaces within the same industry under certain conditions. This aims to address issues such as unpaid wages and long working hours that have plagued the previous Technical Intern Training Program, criticized for exploiting foreign labor.

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The new system emphasizes the development and retention of foreign talent, with a focus on helping inexperienced workers acquire skills necessary to transition to the specified skilled worker scheme within three years. Introduced in 1993, the Technical Intern Training Program has faced scrutiny for its perceived role in importing cheap labor rather than fostering technical skills as initially intended.

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Concerns have arisen over a new measure granting the government authority to revoke permanent residence status for foreigners found deliberately avoiding tax and social insurance payments. Critics argue this could unfairly impact long-term residents and have called for safeguards to protect individuals’ rights.

Despite these concerns, the legislation marks a significant policy shift in Japan’s approach to foreign labor, aiming to increase the number of permanent residents while tightening regulations to prevent abuse. The government has expanded the specified skilled worker scheme, which offers pathways to long-term residency and family reunification for eligible workers.

As Japan grapples with demographic challenges—including a declining native population—the legislation reflects efforts to adapt immigration policies to meet evolving economic needs. The move underscores Japan’s ongoing efforts to balance labor market demands with regulatory safeguards amid demographic shifts.

The legislation garnered support from the ruling Liberal Democratic Party and its coalition partner Komeito, alongside some opposition members, highlighting bipartisan recognition of the need for comprehensive immigration reform. The new laws are set to take effect within three years, signaling a pivotal moment in Japan’s immigration policy aimed at sustaining economic growth amidst demographic decline.

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