In recent years, Japan has seen a significant rise in the number of foreign workers, driven by labor shortages and policies to attract international talent. However, this has also led to a growing problem of illegal employment, where foreign nationals engage in work outside the scope of their designated visa status. The case involving Demae-can, a major food delivery platform, where user accounts were fraudulently created and rented out to foreigners without work authorization, is a striking example of how such activities are becoming more sophisticated and organized.
1. Account Lending and Platform Gig Work
In the Demae-can case, intermediaries created delivery accounts using Japanese nationals’ identities, then rented them to undocumented or unqualified foreigners. These foreigners would conduct deliveries while paying a portion of their earnings to the account owner or broker. Similar practices have been reported with Uber Eats in Japan, where foreign nationals have used rented accounts to bypass employment restrictions, often found through SNS platforms and chat groups advertising “side jobs” or “Demae-can work.”
The gig economy, reliant on flexible, anonymous labor, provides fertile ground for such deception. Fraudulent identity verification using doctored photos, fake IDs, or manipulated documents makes detection difficult for companies and authorities alike.
2. Overworking Foreign Students
Foreign students in Japan are legally permitted to work up to 28 hours per week. However, many violate this limit by working multiple part-time jobs, sometimes under pressure to cover tuition and living expenses. This “overwork” is technically a violation of their residence conditions and constitutes illegal employment.
Moreover, some students are enrolled in Japanese language schools purely as a means to obtain a visa, with no genuine intent to study—a practice referred to as “fake students.” These individuals often work full-time illegally while attending school only nominally, enabled by lax oversight from both employers and educational institutions.
3. Abuse of the Technical Intern Training Program
Japan’s Technical Intern Training Program was established to transfer skills to developing countries, but in reality, it often functions as a source of cheap labor. Trainees sometimes flee abusive or exploitative conditions and engage in unauthorized employment. There have been cases where interns used fake residence cards to work at construction sites or in agriculture, escaping detection by employers who fail to conduct proper verification.
This misuse of the system raises human rights concerns and highlights the structural vulnerabilities within the program, which critics say makes interns vulnerable to exploitation and labor violations.
4. Fake Documentation and Identity Fraud
The use of forged residence cards and employment eligibility certificates is on the rise, facilitated by underground networks and criminal brokers. These forgeries are often difficult to detect visually and may pass casual inspection by employers or even local authorities. In 2023 alone, immigration authorities seized nearly 1,800 fake residence cards used primarily for illegal employment purposes.
Such fake documents are readily available online or through social media, where brokers advertise “complete job solutions” for foreigners, including document preparation and job placement. These networks exploit legal loopholes and employers’ lack of due diligence, contributing to a black-market labor economy.
5. Visa Fraud and Misuse
Another increasingly common method is the misuse of visa categories. For example, some foreigners enter into sham marriages with Japanese nationals to obtain a “spouse of Japanese national” visa, which allows unrestricted work. Others exploit the “Business Manager” visa by registering shell companies, thus obtaining a status that permits employment without being subject to standard labor restrictions.
Once the visa is granted, the individual may engage in completely unrelated work, often with little risk of detection due to limited follow-up from immigration authorities. These schemes blur the lines between legal and illegal activity and are difficult to investigate.
Conclusion: A Need for Stronger Systems and Oversight
These cases illustrate that illegal employment in Japan is evolving from simple violations to complex, organized schemes involving identity fraud, document forgery, and legal loopholes. The Demae-can scandal is just the tip of the iceberg. Without comprehensive countermeasures, these practices risk undermining Japan’s immigration system, labor market integrity, and broader social trust.
Going forward, Japan must strengthen employer accountability, improve verification technologies (such as real-time facial recognition), and enhance inter-agency cooperation between immigration, labor ministries, and law enforcement. At the same time, legal pathways for foreign workers must be made more transparent, humane, and fair to prevent the marginalization and exploitation of vulnerable populations.
As Japan continues to globalize, it must strike a balance between welcoming foreign talent and safeguarding the legal framework that governs residence and labor. Addressing illegal employment will require coordinated action among government bodies, private companies, educational institutions, and civil society.