How to Hire Dispatched (派遣) Workers in Japan: Step-by-step Procedure for Employers (2026 Update)

Understanding how to hire dispatched workers in Japan is essential for any employer planning to use temporary staffing arrangements in the country. Japan’s worker dispatch system, known as rōdōsha haken (労働者派遣), is governed by the Act on Securing the Proper Operation of Worker Dispatching Undertakings and Protecting Dispatched Workers (the “Worker Dispatch Act”), a detailed regulatory framework that imposes obligations on both dispatching agencies and client employers. With strengthened employer obligations taking effect in 2026, this guide provides the complete dispatched worker procedure for Japan: eligibility requirements, step-by-step process, required documents, timelines, costs, and the specific compliance changes employers must address now.

Overview of the Dispatched Worker Process and Who It Applies To

“Worker dispatch” under the Worker Dispatch Act means having a worker employed by one company (the dispatching agency) engage in work for a separate client company, while performing that work under the instruction and orders of the client company. The employment relationship remains between the dispatched worker and the dispatching agency, not the client. This triangular structure is the defining feature of dispatch and distinguishes it from direct employment, outsourcing, and secondment.

There are two principal models of how to hire dispatched workers in Japan that employers should understand:

• Registered dispatch (一般労働者派遣). The dispatching agency registers workers on its books and places them with client companies as assignments arise. The worker’s employment contract with the agency typically lasts only for the duration of each assignment.
• Regular (specified) dispatch (特定労働者派遣). The dispatching agency employs workers on an indefinite or fixed-term basis and dispatches them to clients. These workers remain employed by the agency between assignments.

This article applies to two audiences: client employers who will receive and supervise dispatched workers at their premises, and dispatching employers (staffing agencies) who employ the workers and hold the dispatching business licence. Both parties bear statutory obligations under the Worker Dispatch Act. Where a foreign-invested company in Japan is establishing a dispatch arrangement for the first time, the same framework applies, the company must either obtain its own dispatching business permission or contract with a licensed agency. Employers seeking qualified counsel for dispatch matters can find employment lawyers in Japan through specialist directories.

Eligibility and Prerequisites: Worker Dispatch Law Requirements

Before initiating a dispatch arrangement, employers must confirm that the proposed work falls within permissible categories and that both parties meet the worker dispatch law requirements set out in the Act and its Enforcement Orders.

Prohibited and restricted work types

The Worker Dispatch Act and its associated Enforcement Orders prohibit dispatching workers to certain sectors and for certain tasks. The following types of work are excluded from the dispatch system:

• Port and harbour transport work. Covered by separate labour supply regulations.
• Construction work. Dispatch of workers to construction sites is prohibited.
• Security services. Guard and security work cannot be staffed through dispatch.
• Medical services at hospitals and clinics. Restrictions apply to dispatching medical professionals to healthcare facilities, with limited exceptions.

Beyond outright prohibitions, the Act imposes a general rule that dispatched workers may not remain in the same organisational unit of a client company for more than three years (the “three-year rule”). After that period, the client must either directly employ the worker, request a different dispatched worker, or restructure the assignment.

Classification checklist for employers

Correct classification is critical. In a lawful dispatch arrangement, the dispatching agency, not the client, is the employer for purposes of social insurance enrolment, wage payment, annual paid leave, and labour insurance. The client is responsible for day-to-day direction, workplace health and safety, and compliance with working-hour rules at the work site. Employers should confirm the following before proceeding:

• The proposed work is not on the prohibited list.
• The arrangement is genuinely triangular (the client directs work; the agency employs the worker).
• If the client exercises full employer-like control including hiring and firing, the arrangement may be reclassified as a direct employment relationship, creating liability for unpaid social insurance, back wages, and penalties.
• The dispatching agency holds a valid licence (許可) issued by the relevant Prefectural Labour Bureau.

Employers in Japan’s employment practice area should treat classification as the first compliance gate before any contractual steps begin.

How to Hire Dispatched Workers in Japan: Step-by-Step Procedure

The following numbered steps set out the complete dispatched worker procedure Japan employers must follow, from initial planning through to ongoing compliance. Each step identifies who is responsible and what statutory requirements apply.

Step 1: Decide on the dispatch model and complete a pre-engagement legal check

The client employer’s HR and legal teams should first determine whether a dispatch arrangement is the appropriate staffing model. This involves confirming the scope of duties, checking the prohibited work lists under the Enforcement Orders, and verifying that the role is suitable for dispatch rather than direct hire, outsourcing, or secondment. If the same position was previously held by a dispatched worker who reached the three-year limit, the client must assess whether the “cooling-off” period or direct-hire obligation applies. Document this classification decision in writing as an internal compliance record.

Step 2: Select and appoint a licensed dispatching agency with due diligence

The client should conduct due diligence on prospective dispatching agencies before signing any agreement. Essential checks include:

• Verify the agency holds a current dispatching business permission (許可証) issued by the Prefectural Labour Bureau, this can be confirmed through the MHLW register or by requesting a copy of the licence.
• Review the agency’s mandatory disclosure materials, including its commission rate structure, worker training programmes, and placement track record, as required by MHLW guidance and Japan Staffing Services Association (JASSA) standards.
• Confirm that the agency maintains proper social insurance enrolment for its dispatched workers.

The client-agency relationship should be formalised through a basic contract (基本契約) that sets out general commercial terms, liability allocation, confidentiality obligations, and dispute resolution procedures.

Step 3: Obtain or verify the dispatching business licence (registration for temporary staffing Japan)

If the employer itself intends to operate as a dispatching agency, it must apply for a dispatching business permission (労働者派遣事業の許可) from the Prefectural Labour Bureau. The application requires submission of prescribed forms under the Enforcement Regulation, together with supporting documents including the company’s articles of incorporation, financial statements, and details of the proposed dispatching operation. Processing typically takes two to three months, though this varies by prefecture and workload.

If the employer is a client receiving dispatched workers, rather than operating the dispatching business itself, no separate licence is required. However, the client must confirm the dispatching agency’s licence validity before each engagement and retain evidence of that verification on file. Industry observers expect that 2026 enforcement guidance will place greater emphasis on client-side due diligence, making licence verification a practical audit focus.

Step 4: Prepare the Worker Dispatch Contract and workplace rules

The Worker Dispatch Contract (労働者派遣契約) is the central compliance document. Under Article 26 of the Worker Dispatch Act, this written contract between the dispatching agency and the client must specify:

• The content of the work to be performed by the dispatched worker
• The name and location of the client’s workplace where work will be performed
• The person who will directly supervise the dispatched worker at the client’s premises
• The dispatch period and working days/hours
• Start and end times, rest periods
• Safety and health measures
• The procedure for handling complaints from dispatched workers
• Other matters prescribed by MHLW ordinance

The client must also provide or make accessible its workplace rules, work instructions, and any site-specific health and safety protocols. Both parties should retain signed copies of the Worker Dispatch Contract for at least three years.

Step 5: Onboard the dispatched worker, workplace health, safety and training

Once the contract is signed and the dispatched worker is assigned, the client bears responsibility for workplace induction, health and safety training, and day-to-day supervision. The dispatching agency remains responsible for employment-related matters (wages, social insurance, leave). The client must designate a complaints-handling officer at the workplace and ensure the dispatched worker has access to the complaint mechanism specified in the Worker Dispatch Contract.

Step 6: Maintain records, report, and retain documents for three years

Both the dispatching agency and the client must maintain a dispatch management ledger (派遣先管理台帳 for the client; 派遣元管理台帳 for the agency). These ledgers record the dispatched worker’s name, work content, dispatch period, hours worked, and other prescribed items. The statutory retention period for these records is three years from the date the dispatch period ends, as specified in the Worker Dispatch Act and its Enforcement Regulation. All contracts, notification records, and training logs should likewise be retained for at least three years to ensure audit readiness.

Step 7: Address the three-year conversion rule and direct employment obligations

When a dispatched worker has worked in the same organisational unit of the client for three continuous years, the client must take action. Options include offering direct employment, requesting the agency assign a different worker, or restructuring the unit to reset the clock (though the latter is subject to regulatory scrutiny). The dispatching agency may also be required to offer the worker an indefinite employment contract. Failure to comply with the three-year rule exposes both the agency and the client to administrative orders and potential deemed direct-employment liability.

Timeline and step summary

Documents Needed for Dispatched Workers

A complete set of documents needed for dispatched workers is critical for both initial compliance and ongoing audit defence. The table below sets out each required document, who issues it, and the applicable retention period.

Employers should assemble these documents before the dispatched worker’s first day on site. Missing or incomplete documentation, particularly the Worker Dispatch Contract, is one of the most common findings in labour bureau audits and can trigger administrative correction orders.

Timeline for Compliance and Key Deadlines

The timeline for compliance with Japan’s dispatch regulations runs from the initial classification decision through to the three-year conversion point. Employers should plan against the following milestones:

• Before dispatch begins: Complete classification, agency due diligence, licence verification, and execution of the Worker Dispatch Contract. For new dispatching businesses, allow two to three months for the licence application and approval process at the Prefectural Labour Bureau.
• Day 1 of assignment: Onboarding, workplace induction, health and safety briefing, and complaint-handling officer designation must all be in place.
• Ongoing (throughout the dispatch period): Maintain the dispatch management ledger with current entries. Both client and agency must update records continuously.
• At the three-year mark: Assess the direct employment obligation, conversion options, or organisational unit restructuring. Early planning, at least six months before the three-year date, is strongly recommended to avoid last-minute compliance gaps.
• After the dispatch period ends: Retain all contracts, ledgers, and records for a minimum of three years from the end of the dispatch period, as required by the Worker Dispatch Act and its Enforcement Regulation.

Registration for temporary staffing Japan applicants should note that the Prefectural Labour Bureau may request additional documentation or conduct a premises inspection during the licensing review, which can extend the timeline beyond the typical two-to-three-month window.

Costs, Fees, and Tax Considerations

The costs associated with hiring dispatched workers in Japan fall into several categories. Because exact amounts depend on the dispatching agency’s commercial terms, prefecture-specific fees, and the worker’s wage level, employers should verify current figures directly with the relevant authority or agency before budgeting.

Employers should also factor in the internal costs of compliance: legal review of the Worker Dispatch Contract, internal audit procedures, and training for supervisors who will manage dispatched workers on site. These costs are not trivial, particularly for first-time users of the dispatch system or companies facing 2026 audit scrutiny.

What Changes for Employers in 2026

The 2026 regulatory landscape introduces strengthened employer obligations under the Worker Dispatch Act and associated MHLW guidance. Early indications suggest the following practical effects for employers:

• Enhanced classification scrutiny. MHLW enforcement guidance now places greater emphasis on distinguishing genuine dispatch from disguised employment or outsourcing. Employers should review existing arrangements and document the triangular relationship clearly.
• Stronger record-keeping and reporting obligations. Updated guidance reinforces the requirement for both client employers and dispatching agencies to maintain complete, current dispatch management ledgers and to make them available for inspection promptly.
• Extended client-side governance duties. The likely practical effect of 2026 guidance will be increased regulatory attention on the client’s role, including workplace safety compliance, complaint-handling mechanisms, and proactive management of the three-year conversion timeline.
• Contract clause updates. Employers should review and update existing Worker Dispatch Contracts to reflect current MHLW model clauses and ensure all Article 26 items are addressed in full. Industry observers expect that contracts drafted before 2024 may require amendment.

Employers are advised to conduct a compliance audit of all active dispatch arrangements against the current MHLW operational manual and to consult qualified employment counsel where gaps are identified.

Common Pitfalls and How to Avoid Them

The following pitfalls are the most frequent sources of penalties for non-compliance in Japan’s dispatch system. Each item identifies the risk and a concrete mitigation step.

• Misclassification of the arrangement. Treating a direct employment or outsourcing relationship as dispatch, or vice versa, can result in deemed direct employment, back-payment of social insurance, and administrative sanctions. Mitigation: complete the classification checklist before any contract is signed and document the decision.
• Failing to verify the dispatching agency’s licence. If the agency’s permission has lapsed or was never granted, the entire arrangement is unlawful. Mitigation: check the MHLW register or request a copy of the current 許可証 before each new engagement.
• Incomplete Worker Dispatch Contract. Omitting any of the mandatory items under Article 26, such as the complaints procedure or safety measures, renders the contract non-compliant. Mitigation: use the MHLW model contract as a baseline and cross-check against the statutory checklist.
• Poor record retention. Failing to maintain the dispatch management ledger or discarding records before the three-year statutory retention period has elapsed. Mitigation: implement a document-retention schedule tied to the end date of each dispatch period.
• Ignoring the three-year conversion rule. Allowing a dispatched worker to remain in the same organisational unit beyond three years without taking action triggers deemed direct employment. Mitigation: calendar the three-year date at the outset of every assignment and begin planning at least six months in advance.
• Inadequate health and safety induction. The client is responsible for workplace safety for dispatched workers. Failure to provide induction training or designate a complaints officer is a common audit finding. Mitigation: include induction in the onboarding checklist and assign a named officer before day one.

Sources

1. Japan Law Translation, Act on Securing the Proper Operation of Worker Dispatching Undertakings and Protecting Dispatched Workers
2. Japan Law Translation, Enforcement Regulation for the Worker Dispatch Act
3. Ministry of Health, Labour and Welfare (MHLW), Labour Dispatch Guidance and Operational Manuals
4. Japan Staffing Services Association (JASSA), System and Law
5. Japan Institute for Labour Policy and Training (JILPT), Dispatched Work Research