Model Case of Illegal Employment Facilitation and Key Points for Preventing Recurrence

The employment of foreign workers involves complex systems and multiple stakeholders.
As a result, companies may unknowingly create a structure that falls under
the crime of Illegal Employment Facilitation (Immigration Control Act, Article 73-2).
This section outlines a model case commonly seen in foreign employment and highlights the essential points companies should learn.

Case: Involvement of an Unlicensed Employment Agency

A company hired a foreign worker introduced by an agency,
without realizing that the agency was
operating without a license for employment placement.

Receiving introductions from an unlicensed agency is a violation of the Employment Security Act,
but at this stage, the company is not yet violating the Immigration Control Act.
However, cases involving unlicensed agencies often include situations such as excessive fees charged to the foreign worker,
or assignments to duties not permitted under their status of residence—
conditions known to increase the risk of illegal employment.

When employing foreign nationals, companies have an obligation to verify
the content of the status of residence, permitted job categories,
the licensing status of the introducing agency, and any contractual or financial burdens placed on the worker.
If these checks are not performed and illegal employment occurs as a result,
the company’s lack of verification may be considered
“conduct that facilitates illegal employment,”
and the company may be subject to the crime of Illegal Employment Facilitation.

Furthermore, under the operational practice of the Immigration Control Act,
“not knowing” does not necessarily exempt a company from responsibility.
Failure to verify required items may be evaluated as
“negligence in exercising due caution,”
which can result in the conduct being treated as facilitation.

Issues Identified in This Case

● Failure to confirm the agency’s license number
● Lack of transparency in contracts and sending structures
● Company did not verify the financial burden imposed on the foreign worker
● Supervising organizations and support agencies did not conduct sufficient checks

Preventive Measures

● Always verify the license number and registration status of the introducing agency
● Have a third party examine the relationships among sending organizations and staffing companies
● Confirm whether the foreign worker bears any financial burden
● Have an administrative scrivener review contracts and support arrangements in advance

Damages Suffered by the Company

● Administrative guidance and mandatory reporting
● Suspension of work due to the foreign worker’s employment halt
● Internal investigations by the compliance committee
● Loss of trust from business partners
● Complete revision of recruitment plans

Lessons for Other Companies

Illegal employment often occurs not out of “malicious intent,”
but within hidden structures that companies cannot easily detect.
The relationships among introducing agencies, sending organizations, and support institutions
are sometimes impossible for companies to identify on their own.

Why Companies Need an External Specialist

An administrative scrivener acting as an external advisor can review operational structures
from the company’s perspective as a neutral third party,
preventing the formation of conditions that lead to illegal employment.