Japan's Technical Intern Training Program (技能実習制度 - Ginō Jisshū Seido, hereinafter "TITP") was established with the official aim of transferring skills, technology, and knowledge to developing countries by allowing individuals from these nations to undertake on-the-job training in various Japanese industries. However, the program has been persistently plagued by criticisms and legal challenges, with numerous reports and court cases highlighting issues such as labor exploitation, human rights abuses, and inadequate oversight. This article delves into some of the key legal challenges associated with the TITP, drawing upon judicial precedents to examine problems like unpaid wages, employer misconduct, and the liability of supervising organizations.

Overview of the Technical Intern Training Program (TITP)

The TITP operates through a structured framework involving:

1. Sending Organizations: Entities in the interns' home countries that recruit and dispatch them to Japan.
2. Supervising Organizations (監理団体 - Kanri Dantai): Non-profit entities in Japan, such as business cooperatives or chambers of commerce, responsible for overseeing the implementing organizations, providing guidance, and ensuring the proper conduct of the training program.
3. Implementing Organizations (実習実施機関 - Jisshū Jisshi Kikan): The actual companies or farms in Japan where the technical interns are placed for training and work.

Foreign nationals participating in this program reside in Japan under the "Technical Intern Training" (技能実習 - ginō jisshū) status of residence. The program is divided into different stages, typically starting with an initial period of lectures and basic training, followed by practical on-the-job training where interns are engaged in actual work.

Despite its stated goals, the TITP has frequently been criticized as a de facto guest worker program, used by some Japanese companies, particularly in labor-intensive sectors, to secure low-cost labor rather than genuinely focusing on skills transfer. This has led to a range of legal disputes.

Key Legal Challenges and Areas of Dispute

Court cases related to the TITP reveal several recurring patterns of legal issues and abuses.

A. Unpaid Wages, Below-Minimum Wages, and Unlawful Deductions

A significant number of legal challenges involve wage-related disputes. Once technical interns transition from the initial lecture-based training to the practical, on-the-job training phases (typically after the first month or two), they are generally considered "workers" under Japanese labor laws. This means they are entitled to protections under the Labor Standards Act (労働基準法 - Rōdō Kijun Hō), the Minimum Wage Act (最低賃金法 - Saitei Chingin Hō), and other labor-related statutes.

Despite these protections, cases of interns being paid less than the applicable regional minimum wage, not receiving proper overtime pay, or having excessive and often unexplained deductions made from their salaries for expenses like rent, utilities, or "training fees" have been prevalent.

• Numerous district court rulings have recognized the rights of interns to receive unpaid wage differentials. For example, the Tokushima District Court on December 26, 2014 (Heisei 22 (Wa) No. 637), the Hakodate District Court on March 27, 2014 (Heisei 23 (Wa) No. 158, Heisei 24 (Wa) No. 27), and the Kanazawa District Court, Komatsu Branch on March 7, 2014 (Heisei 24 (Wa) No. 77), all involved successful claims by interns for such payments.
• The Fukushima District Court, Shirakawa Branch, on February 14, 2012 (Heisei 21 (Wa) No. 160, Heisei 22 (Wa) No. 1), also ordered payment of unpaid wages.
• The Tsu District Court, Yokkaichi Branch, on March 18, 2009 (Heisei 19 (Wa) Nos. 478, 552), similarly recognized interns' claims for unpaid wages.

These cases underscore that contractual agreements stipulating wages below the legal minimum are void, and interns are entitled to be paid according to Japanese labor standards. Employers who fail to comply face legal action for back pay and potential damages.

B. Human Rights Abuses and Employer Misconduct

Beyond wage issues, more severe forms of mistreatment and human rights violations have been reported and litigated.

• Forced Management (Confiscation) of Passports and Bankbooks:
  A particularly egregious practice has been the confiscation of interns' passports and bankbooks by implementing organizations or even supervising organizations. This severely restricts the interns' freedom of movement, makes it difficult for them to leave abusive environments, and gives employers undue control over their finances. Such actions are illegal.
  • The Kanazawa District Court, Komatsu Branch, on March 7, 2014 (Heisei 24 (Wa) No. 77), the Nagasaki District Court on March 4, 2013 (Heisei 22 (Wa) No. 118), the Fukushima District Court, Shirakawa Branch, on February 14, 2012 (Heisei 21 (Wa) No. 160), and the Kumamoto District Court on January 29, 2010 (Heisei 19 (Wa) No. 1711), all involved situations where the forced management of passports or bankbooks was a central issue, often leading to findings of tort liability against the employers.
• Assault, Harassment, and Poor Working/Living Conditions:
  Cases of physical assault by company employees, verbal harassment, excessively long working hours, unsafe working conditions, and cramped or unsanitary living accommodations have also surfaced. The Chiba District Court, on September 30, 2014 (Heisei 21 (Wa) No. 2950), for example, dealt with a claim involving assault by an employee of the implementing organization.

These abuses not only violate Japanese law but also fundamentally undermine the purported educational and skill-transfer objectives of the TITP.

C. Liability of Supervising Organizations (監理団体 - Kanri Dantai)

Supervising organizations are intended to act as intermediaries and overseers, ensuring that implementing organizations conduct training appropriately and comply with labor laws and program regulations. However, their effectiveness has often been questioned.

Courts have, in several instances, found supervising organizations jointly liable with implementing organizations for damages arising from unpaid wages or abusive practices, particularly when they have failed in their supervisory duties.

• The Kumamoto District Court on January 29, 2010 (Heisei 19 (Wa) No. 1711), the Fukushima District Court, Shirakawa Branch on February 14, 2012 (Heisei 21 (Wa) No. 160, Heisei 22 (Wa) No. 1), the Toyama District Court on July 17, 2013 (Heisei 24 (Wa) No. 6), and the Saitama District Court on October 24, 2012 (Heisei 22 (Wa) No. 3472), are examples where supervising organizations were held liable in tort for failing to prevent or address abuses and illegalities committed by the implementing organizations they were supposed to guide and monitor.

This line of cases indicates that supervising organizations cannot simply act as passive conduits but have an active responsibility to ensure the welfare and proper treatment of interns under their purview. (It is worth noting that one case, Kumamoto District Court, January 29, 2010 (Heisei 19 (Wa) No. 1711) also considered the liability of JITCO (Japan International Training Cooperation Organization), a former government-affiliated support body, and did not find it liable in that instance, distinguishing its role from that of a direct supervising organization).

D. Interns Absconding and Subsequent Immigration Issues

Driven by harsh conditions, low pay, significant debts owed to sending organizations or brokers, or disillusionment with the program, a considerable number of technical interns have absconded from their designated workplaces.

• When interns leave their implementing organizations without authorization, they typically lose their "Technical Intern Training" status and become overstayers if they remain in Japan.
• Many absconded interns then seek unauthorized employment elsewhere to survive or pay off debts, leading to further immigration violations.
• Cases before the Tokyo District Court on September 8, 2015 (Heisei 26 (Gyo-U) No. 508), July 10, 2015 (Heisei 26 (Gyo-U) No. 320), March 25, 2015 (Heisei 26 (Gyo-U) No. 149), and July 15, 2014 (Heisei 25 (Gyo-U) No. 215), likely involved deportation proceedings against interns who had absconded and were subsequently found to be overstaying or working illegally.

While absconding is an immigration violation on the part of the intern, the high incidence of such cases also points to systemic problems within the TITP that create conditions leading interns to take such desperate measures.

The Legal Framework for Protecting Technical Interns

Despite the issues, legal protections do exist for technical interns:

1. Application of Labor Laws: As mentioned, once interns begin practical, on-the-job training, they are generally covered by the Labor Standards Act (regarding working hours, rest, paid leave, dismissal rules), the Minimum Wage Act, the Industrial Safety and Health Act, and other labor protection laws. The Wakayama District Court, on June 3, 2008 (Heisei 20 (Wa) Nos. 146, 218), for example, involved a criminal conviction of an employer for violating the Labor Standards Act in relation to technical interns.
2. Act on Proper Technical Intern Training and Protection of Technical Intern Trainees (技能実習適正化法 - Ginō Jisshū Tekiseika Hō): This law, fully enacted in 2017 (thus, many of the cited PDF cases predate its full impact), aimed to address some of the longstanding problems by strengthening the regulatory framework. Key features include:
   • Stricter licensing and oversight of supervising organizations.
   • Enhanced requirements for implementing organizations.
   • Establishment of the Organization for Technical Intern Training (OTIT - 外国人技能実習機構) as a new supervisory and support body with powers to conduct on-site inspections and order improvements.
   • Clearer prohibitions on human rights abuses like passport confiscation and restrictions on freedom.
   • Provisions for consultation and support for interns.

Whether this Act has been fully effective in curbing abuses remains a subject of ongoing debate and monitoring.

Broader Implications and Corporate Social Responsibility

The persistent issues within the TITP have broader implications, particularly concerning corporate social responsibility (CSR) and supply chain ethics. Companies in Japan that directly employ technical interns, and international companies that source goods or services from Japanese businesses utilizing the TITP, face reputational and ethical risks if interns in their operations or supply chains are found to be subjected to exploitative or abusive conditions.

• There is increasing international scrutiny on labor practices in global supply chains.
• Businesses are expected to conduct due diligence to ensure that their operations and those of their suppliers respect human and labor rights. This includes understanding the conditions under which technical interns are employed.

The Japanese government itself has acknowledged problems with the TITP and, as of recent discussions, is considering significant reforms or even replacing the program with a new system more focused on genuine skills development and addressing labor shortages in a more transparent manner, while strengthening protections for foreign workers.

Conclusion

Japan's Technical Intern Training Program, while conceived with the laudable goal of international skills transfer, has been fraught with significant legal and human rights challenges. Court cases have consistently affirmed that technical interns are entitled to the protections of Japanese labor laws concerning wages, working hours, and safety. Furthermore, practices such as withholding passports or forcing interns into exploitative conditions have been found unlawful, with both employers (implementing organizations) and, increasingly, supervising organizations being held liable for failing in their duties.

The enactment of the Act on Proper Technical Intern Training and Protection of Technical Intern Trainees represented an attempt to address these issues, but vigilance from authorities, civil society, and the business community remains crucial. For any company involved with or benefiting from the TITP, a thorough understanding of the legal obligations and a commitment to ethical treatment and genuine skills development are essential to avoid legal pitfalls and uphold fundamental human and labor rights. The ongoing discussions about reforming or replacing the TITP signal a recognition at the highest levels that changes are needed to ensure the program aligns with both Japan's economic needs and its commitment to international labor standards.