License Application Support for Worker Dispatch and Employment Placement Services
What is the staffing (worker dispatch) business?
The staffing business is a service where a company dispatches workers it employs to client companies and receives compensation in return. Previously, there were two categories: "Specified Worker Dispatch," where employees hired directly by the company were dispatched, and "General Worker Dispatch," where workers were registered and hired only during the dispatch period. The former did not require a license.
However, following the 2015 amendment to the Worker Dispatch Act, the distinction between specified and general dispatch was eliminated, and all forms of staffing now require a Worker Dispatch Business License.
Some companies may have customarily sent their employees to related companies or clients under the label of "temporary transfer" (shukkō) and received payment. However, if this is done repeatedly for profit, it is considered staffing, and doing so without a license is a violation of the Worker Dispatch Act.
To obtain a Worker Dispatch Business License, one must meet all requirements, including completion of a training course for dispatch managers, assets of at least 20 million yen, and having an office space of at least 20 square meters. It generally takes about four months from application to approval.
Click here for the fees for Worker Dispatch Business License application
The employment placement business
The employment placement business differs from the worker dispatch business, where the worker is employed by the dispatching company. Instead, the placement business arranges for the introduced candidate to sign a direct employment contract with the client company and receives a fee for the introduction.
When schools or chambers of commerce provide employment placement services for free, only a notification to the Labor Standards Inspection Office is required. However, if the service is provided for a fee, a license for a paid employment placement business must be obtained.
To obtain a license for a paid employment placement business, one must complete the responsible officer training and meet all requirements, including having at least 5 million yen in assets and an
Click here for the application fees for a Paid Employment Placement Business License