The government is planning to simplify some of the procedures small and midsized companies must go through to change the residence status of foreign students they wish to hire, sources said.
The current application process is troublesome for small and midsized companies, and has served as a hurdle to hiring foreign students.
The changes, which are to be introduced in April, are aimed at easing the burden on businesses to create an environment that encourages the hiring of foreign students.
When foreigners find jobs after studying at universities or graduate schools, they must change their residence status from "Student" to "Engineer / Specialist in Humanities / International Services."
To employ a foreign student, both the student and the company must apply to the Immigration Bureau for a change in residence status.
There is currently a disparity in the procedures for large companies and those for small and midsized firms. Large companies only have to fill out an application form with information such as the company's size and capitalization, and the type of job the foreign student will be offered.
Small and midsized companies not only have to fill out application forms, but also have to submit materials verifying their financial status, such as accounting documents or certificates verifying registrations.
While the purpose of these extra steps is to verify whether a firm should be employing foreigners, it places a major burden on the company.
Under the new system, companies that are certified as "superior with no management issues" by agencies, ministries, or local municipalities would not have to submit such materials.
The government is considering granting certification to small and midsized companies and other entities that have passed screenings to participate in projects that receive state subsidies or other matters.
According to the Justice Ministry, 22,419 foreign students changed their residence status in 2017 to work at Japanese companies or for other purposes.
Of these, about 8,275 students, or 37 percent, were employed by small and midsized companies with less than 50 employees.
"Getting highly qualified foreigners to small and midsized companies could stimulate the economy," a senior ministry official said.
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