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Last updated: July 1, 2026
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Do you believe that "working in Japan is supposed to be painful"? Has your boss threatened you, saying, "If you quit, I'll revoke your visa"?
If so, you are not experiencing "Japanese culture"—you are a victim of a Black Company.
Many foreign engineers are forced to work for less than half of a fair salary simply because they do not know Japanese labor laws. In this article, based on Japanese law and market data, we publish a checklist to determine if your company is "dangerous."
We will also show you the "escape route" to break free from this structure of exploitation and secure the salary and freedom your skills deserve.
Exploitation targeting foreign engineers has clear "numerical standards." Judge not by emotion, but by the numbers.
Danger Signal: Your employment contract lists "Fixed Overtime Pay (Minashi Zangyo)" covering 45 hours or more.
The Truth: 45 hours a month is right before the legal "Karoshi Line" (death from overwork). Companies that build this into your base salary from the start intend to work you to your limit. Under Japan's Labor Standards Act, the limit for overtime work is generally 45 hours per month. Including 45 hours of overtime in your fixed salary from day one is essentially a declaration that they plan to "make you work the maximum overtime limit every month."
Danger Signal: The company refuses to tell you the "Unit Price" (Tanka) the client is paying for you.
The Truth: In the SES (System Engineering Service / Client Resident) business, if you are earning the company ¥800,000/month but your take-home pay is only ¥300,000, how would you feel? In this case, the return rate is only 37%. The remaining 63% is being exploited by the company while doing nothing. Excuses like "educational costs" or "visa support fees" are just that—excuses.
My company won't tell me the unit price... Does that mean they might be taking more than half of my salary?
The threats Black Companies use to stop you from quitting have no legal force. Do not be deceived.
Legal Basis: Companies do not have the authority to cancel visas. That authority belongs solely to the "Immigration Bureau."
Reassurance: Even if you leave the company, your visa does not expire immediately. Legally, you have a 3-month grace period after resigning to look for a new job. Even if the company tells you to "return to your home country tomorrow," you have absolutely no obligation to obey. You are protected by Japanese law.
Legal Basis: This is a violation of Article 16 of the Labor Standards Act. Contracts that state "if you quit, you must pay a penalty" are invalid, even if you signed them when you joined.
Action: Tell them, "That is a violation of the Labor Standards Act. I will consult a Lawyer." They will likely go silent for fear of legal repercussions.
Once you realize your current environment is "Black," the next step is action. Choose the best "shelter" based on your Japanese level and skills.
Are you tired of "Client Resident" (SES) work, where you are sent to a different office every day and have to build relationships from scratch? As an In-house SE, you can settle down in your own company's office and focus on developing in-house services.
Visa renewals are also smoother with stable listed companies or reputable firms. Free yourself from the anxiety of "when will my contract be cut?"
No more client sites! If you want to build a stable career with in-house development, go to an agent specializing in In-house SEs.
Even if your Japanese is at N3 level, if you have modern skills like Python, Go, or AWS, your salary can go much higher. There is no need to stay at a company that doesn't understand your value.
TechGo is a high-class recruitment agent specializing in IT engineers. With professional salary negotiation, it is not uncommon to see a salary increase of ¥1.5 million.
Pro Tip: If you feel your skills aren't sharp enough yet to demand a raise, consider upskilling first. Read: Top 3 Coding Bootcamps for Foreigners (Get up to ¥560k Benefit)
An agent specialized in salary increases. If you have skills in Python/Go/AWS, register now.
If you cannot forgive the company's "middleman cut," the strongest option is freelancing or working for a "transparent return rate" company.
Return rates over 80% are the norm. Break free from company exploitation and keep what you earn.
With 'Salary Guarantee,' you can be safe even as a first-time freelancer. Risk-free independence with Midworks.
If the options above don't fit your needs, or if you want to explore more English-friendly job boards, check our comprehensive guide: 👉 The Ultimate Guide to Recruitment Agents in Japan for IT Engineers & Programmers
Before deciding to resign, please collect the following evidence. These will become your "weapons" in the unlikely event of trouble with the company.
Staying in a "Black Company" endangers not only your career but also your health and visa stability. There are many companies in Japan that value foreign engineers.
Start by registering with the agents introduced today and knowing "your true market value (appropriate annual salary)." That is the first step toward your escape.
First, check your market value with 'ShanaisSE Tenshoku Navi'. Registration is free, and you can consult about visas and your career.
You might need this information again. Bookmark this page to access it anytime.
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Reading this in English?
Help improve English guides like this
If this guide helped but a phrase felt unnatural, your native check can make the next English article clearer for foreign residents in Japan.
A: ブラック企業 (black company) refers to employers with predatory labor practices: excessive unpaid overtime (サービス残業), verbal abuse by management (パワハラ), illegal or near-illegal employment conditions, poor work-life balance, and high turnover rates. Foreign workers are particularly vulnerable due to language barriers and less familiarity with Japanese labor law.
A: Red flags: (1) No mention of fixed overtime compensation (固定残業代) or extremely high fixed overtime (80+ hours), (2) Interview with no concrete job description, (3) Pressure to sign contract same day, (4) Glassdoor/Vorkers reviews showing 1-star ratings with "パワハラ" mentions, (5) SES company that can't tell you which client site you'll be dispatched to.
A: Verification methods: (1) Search company name on 転職会議 (tenshoku-kaigi.com) or Vorkers (now OpenWork) for employee reviews, (2) Check 労働基準監督署 (Labor Standards Inspection Office) violation records, (3) Verify company registration on the National Tax Agency corporate search, (4) Ask in gaijin engineering communities (Facebook groups, Reddit r/japanlife).
A: All foreign workers with valid work status have the same rights as Japanese workers under Japanese labor law: (1) Minimum wage, (2) Paid annual leave (年次有給休暇), (3) Social insurance (健康保険・厚生年金), (4) Employment insurance (雇用保険), (5) Protection from illegal dismissal (不当解雇). Contact ハローワーク or Sōgi Rōdō for advice.
A: Steps: (1) Consult 総合労働相談コーナー (free, anonymous, multilingual in major cities), (2) File a complaint with the Labor Standards Inspection Office (労働基準監督署) if overtime is unpaid, (3) Start job hunting immediately — the job market for engineers is strong, (4) Consider using a 退職代行 (resignation agency) if your employer is making it difficult to quit, (5) Consult a 弁護士 (lawyer) for severe cases of unpaid wages or illegal dismissal.
CEO / Native Japanese Expert
Updated on: July 1, 2026
※ The information in this article is accurate as of the time of writing. Laws and regulations may change, so please always check official sources for the latest information. We assume no liability for any damages resulting from the content of this article.
