Introduction
The status of residence “Designated Activities (Public Notice No. 46)” was created to enable highly skilled foreign nationals who have graduated from universities and other institutions in Japan to work in a wide range of fields.
In practice, employers and foreign employees often ask whether the status can be renewed when the employment contract is set for less than one year, for example a six‑month contract.
This article explains, from a practical viewpoint and based on information published by the Ministry of Justice and the Immigration Services Agency of Japan, whether renewal is possible under such circumstances.
Overview and Legal Position of Designated Activities (No. 46)
Designated Activities (No. 46) covers activities of foreign nationals who have graduated from universities or similar institutions in Japan and meet requirements such as Japanese‑language ability and utilization of their academic achievements, working as full‑time employees of public or private entities in Japan.
The detailed requirements regarding academic background, Japanese‑language ability and use of academic achievements are set out in the Ministerial Public Notice (Ministry of Justice Public Notice No. 131 of 1990, No. 46) and Table 11 attached to it.
The period of stay is “5 years, 3 years, 1 year, 6 months, 3 months or any period designated individually by the Minister of Justice not exceeding 5 years”, and renewal of the period is permitted.
Period of Stay and Contract Term Do Not Always Match
Under Japanese immigration law, the “period of stay” and the “employment contract term” are different concepts, and there is no rule that the period of stay must always be identical to the contract term.
In practice, the period granted upon renewal is determined comprehensively, considering factors such as the contract term, continuity of the activity, business stability, nature of work, conduct of the foreign national and tax/payment records, rather than being mechanically tied to the contract length.
However, short contract terms tend to raise questions about the continuity of the activity, which may affect both the possibility of renewal and the length of the period granted.
Cases Where Renewal Is Possible with a Contract of Less Than One Year
For example, after graduation, a foreign national under Designated Activities (No. 46) may work for a company on a six‑month renewable fixed‑term contract, while in substance the company expects to employ the person for several years.
Even in such a situation, if documents demonstrate that the employment is in fact intended to continue and other requirements are still met, renewal of status and even a one‑year or longer period of stay may be granted despite the six‑month contract.
Key factors include:
- Good work performance and clear indication in company documents that renewal of the contract is expected.
- Stability and continuity of the employer’s business, evidenced by financial statements and business plans.
- Continued fulfillment of the Designated Activities (No. 46) requirements (academic background, Japanese‑language ability, remuneration level and use of academic achievements).
Patterns Where Short Contracts Make Renewal Difficult
On the other hand, if a three‑ or six‑month fixed‑term contract is used for trial employment or for a short‑term project only, there is a higher risk that the authorized activity will end shortly after renewal.
When the continuity of the activity is weak, the immigration authority may grant only a short period of stay upon renewal or may even find that renewal is not appropriate in some cases.
If low income, very few working days or other problematic conditions are combined with a short contract, the authority may determine that the legal requirements of Designated Activities (No. 46) are not satisfied.
Main Points Examined at Renewal
In renewal examinations, authorities look not only at the contract length but also at the following points.
- Remuneration: whether the salary is at least equivalent to that of a Japanese national in a comparable position.
- Duties: whether the work corresponds to the designated activities and utilizes the person’s academic achievements.
- Business continuity: whether the employer has sound business operations and financial stability.
- Compliance: whether the foreign national has properly paid taxes and social insurance and fulfilled required notifications.
Thus, the key question is not simply whether the contract is for less than one year, but whether lawful activities are expected to continue under that contract and future renewals.
Practical Measures When Renewing Under a Short Contract
Employers should prepare employment contracts and work rules that clearly indicate, where appropriate, that fixed‑term contracts of less than one year are intended to be renewed in the ordinary course of business.
Job descriptions that show the duties match the scope of Designated Activities (No. 46) and written explanations on how the employee’s academic background is utilized can strengthen the case at renewal.
The foreign employee is also advised to submit tax certificates, proof of social insurance enrollment and other documents showing a stable life and compliance with obligations.
Illustrative Case (For Explanation Only)
Suppose Ms. B, who graduated from a Japanese university and holds JLPT N1, works under Designated Activities (No. 46) for a regional retailer on a six‑month renewable contract, handling cashier and customer service as well as product planning and multilingual support.
If the company’s financial statements show stability, internal documents indicate an intention of long‑term employment and Ms. B’s performance is positive, renewal may be approved even though the contract is renewed every six months.
This is only an illustrative example; the actual outcome and length of the period of stay will always depend on the individual circumstances and the authority’s examination in each case.
Risk Management Under Contracts of Less Than One Year
With a contract of less than one year, sudden business difficulties or restructuring may lead to non‑renewal of the contract, in which case it may become difficult for the foreign national to maintain a valid status of residence.
Employers should therefore design their recruitment and employment plans with both mid‑ to long‑term HR strategy and immigration requirements in mind, rather than using foreign employees merely as short‑term replacements.
Foreign nationals are also encouraged to discuss their medium‑ to long‑term career plans with their employers and to consider, where appropriate, change of status to other work‑related categories or future permanent residence applications.
Conclusion
For Designated Activities (No. 46), the law does not require that the period of stay exactly match the employment contract term, and renewal is in principle possible even when the contract is for less than one year, as long as the statutory requirements and continuity of activities are satisfied.
However, short contract terms may increase risks related to continuity of activities and stricter examination, so both employers and foreign employees should carefully prepare contract terms, job contents, business documents and compliance records before applying for renewal.
Because the operation of Designated Activities (No. 46) depends on public notices, administrative policies and individual facts, it is advisable to check the latest official information and, when necessary, seek advice from qualified professionals.
