Introduction

Many people worry that if their employer’s business is deteriorating, their “Skilled Labor” visa renewal will be denied. In fact, the employer’s business situation is an important factor in the visa renewal review. Here, we will explain the impact of company reliability and business conditions on “Skilled Labor” visa renewals, based on the latest regulations and actual review standards.

The impact of the employer’s business condition on visa renewal

In the review process for renewing the “Skilled Labor” visa, not only the applicant’s expertise and job content but also the employer’s business situation is closely examined. In particular, if the company is in deficit or has a negative net worth, the Immigration Bureau may doubt the continuity of salary payments and the stability of the business. However, a deficit alone does not automatically result in denial; if there is a business improvement plan or proof of salary payment ability, approval is still possible.

The impact of company reliability on the review

Company reliability refers to business continuity, salary payment ability, and the adequacy of labor management systems. The review process checks the following points:

• Company financial statements (profit/loss, cash flow)
• Business plans and improvement measures
• Proof of salary payment ability (cash and deposit balance, funding plans, etc.)
• Adequacy of employment contracts and internal regulations

Companies that are newly established or have continued deficits are more likely to be questioned about their ability to continue employing foreigners, increasing the risk of denial. Therefore, it is crucial to submit business plans, funding plans, improvement measures, and other documents to objectively prove business continuity and salary payment ability.

Case Example

A manufacturing company experienced two consecutive years of deficit. When a foreign employee applied for a “Skilled Labor” visa renewal, the company submitted a business plan, proof of funding, and improvement measures. As a result, the Immigration Bureau recognized the company’s business continuity and salary payment ability, and the visa was approved. On the other hand, a company established two years ago, with deficit and without improvement plans or explanations, was denied due to doubts about its continuity.

Summary

A deteriorating employer’s business does not automatically result in the denial of a “Skilled Labor” visa renewal. However, it is very important to provide documents that prove company reliability, business continuity, and salary payment ability, and to clearly present improvement plans and cash flow forecasts. If you are concerned, it is recommended to consult with an administrative scrivener or other expert for appropriate support.