What is the Fee-Charging Employment Placement Business?

“Fee-Charging Employment Placement Businesses” refers to a business that receives a commission by connecting a job seeker with a recruitment company.
Companies commonly referred to as “recruitment companies” are the “paying job placement business operators”. Such as “Hello Work” which does not generate compensation by matching and the employment division of the university are “free employment placement business”.

What is recruitment work?

① Benefits of using recruiter

For companies recruiting job seekers, the benefits of using recruitment,
・Initial costs can be reduced
· Small burden of recruitment work
· You can also correspond to private job offerings
It will include things like difference between recruitment work and temporary staffing business.
Next, let’s explain the difference between recruitment worker and temporary staffing business.

In the case of temporary staffing service, the person dispatched will sign an employment contract with a temporary agency and will receive salary from the temporary agency. The temporary agency will pay the fee from the fee received from the company to be dispatched and pay the person dispatched.
In the case of one recruitment worker, job seekers and referral companies enter a direct employment contract. The introduction company only receives the referral fee from the referral company, and it does not connect to employment.

Regarding the introduction fee, it is classified into two categories, upper limit control fee and notification control fee, each with detailed regulations. Upper limitation fee is determined by the Ministry of Health, Labor and Welfare under fixed formal regulation and the fee is determined and received. The notification fee is the fee charged by the paid employment placement business operator to the Minister of Health, Labor and Welfare.
In general, it is the market price that receives about 10 to 30% of the annual income of job seekers as a commission. Also, except for some occupations, it is forbidden to take a fee from job seekers.

Please note that mediation is prohibited for the two industries of the port transport industry and the construction business in the toll payment placement business.

 

License requirement for paid job placement business

To start a fee-based employment placement business, you need to obtain permission from the Minister of Health, Labor and Welfare. The validity period is new 3 years, renewal 5 years. In order to apply for permission, the following requirements must be satisfied.

1.  Requirements for property (assets and cash deposits)

2.①The amount obtained by deducting the total amount of liabilities from the total assets is 5 million yen or more.(5 million yen × number of establishments if there are multiple business establishments performing employment placement projects)
② The amount of cash and deposits of self-nominated as funds of business is 1.5 million yen or more.

(If there are two or more establishments engaged in employment placement business, 1.5 million yen × number of establishments)

Requirements for property basis

1. An amount (“reference asset amount”) less the total amount of liabilities from total assets is 5 million yen or more for each business establishment that intends to conduct employment placement business
2. The amount of cash on deposit in self nominated, An amount equal to the sum of the number of business establishments trying to carry out job introduction business to 1.5 million yen plus the amount obtained by multiplying by 600,000 yen to the amount obtained by subtracting 1
Baseline asset value = total assets – (goodwill + deferred assets) – total liabilities
1. Base asset value ≧ 5 million yen × number of authorized establishments

2. Amount of cash / deposit ≧ 1.5 million yen × (Number of establishments – 1 × 600,000 yen)

3. Requirements for office (size / location)

4.

①It is not in an unfavorable position for business management, such as densely popular business regulated by wind farming law.
②The area that can be used for business is approximately 20㎡ or more. However, in case of occupation introduction which does not accompany face-to-face exclusively on the Internet, the size of the area is not required as a requirement.
③It must have a structure that can hold personal secrets of recruiters and job seekers.
④The name of the place of business is not misidentified as an occupational stability agency or other public institution

3. Requirements for representatives and officers (limited to corporations)

①The life ground is stable.
②There is no risk of arbitrarily binding on the spirit, body and freedom of others.
③There is no fear of putting on harmful operations on public health and public morals.
③ In case of a foreigner, you must have a certain requirement of residence status.
④ ④ When grasping employment placement abroad, understand the situation and system of the recipient country and be able to communicate accurately with job offerers and job seekers.

4. Requirements for employment placement officer

①Not minors, not falling under disqualification reasons.
②The employment placement officer has been appointed according to laws and regulations.
③The life ground is stable.
④Good health condition.
⑤There is no risk of arbitrarily binding on the spirit, body and freedom of others.
⑥The employment placement officer is not nominated.
⑦To have experience of employment management for 3 years or more since the age has been reached.
⑧Be a person who took a job placement supervisor lecture (Registered less than 5 years before application for permission).
⑨For foreigners, you must have a status of residence.

5. Proper business management requirement

①Do not use paid employment placement business as a means for acquiring members, expanding organization, promoting purpose etc.
②There is no possibility that employment introductions biased towards the interests of employers will be carried out.
③In the case of concurrent work with the temporary work, certain requirements such as clearly distinguishing and managing the personal information of job applicants and personal information of temporary staff are to be satisfied.
④Have a commission table clarifying the fee to collect.

 

6. Requirements for personal information management

①The scope of staff within the office that handles personal information such as job seekers has been clarified.
②Education for staff is being implemented for not using personal information on recruiters, job seekers, etc. who knew in the job for purposes other than business, or not to leave to others.
③There are regulations on matters concerning the handling of disclosure or correction (including deletion) of personal information when requested from the principal, and the regulations have been notified to job seekers, etc.
④The system within the office by the job introduction managers etc. concerning the handling of complaints concerning the handling of personal information is clarified and it is said that complaints should be handled promptly and appropriately.
⑤Measures are taken to keep personal information accurate and up to date within the necessary range according to the purpose.
⑥Measures have been taken to prevent the loss, destruction and tampering of personal information.
⑦Measures have been taken to prevent access to personal information such as job seekers by persons other than staff in the office that handles personal information such as job seekers.
⑧Measures have been taken to discard or delete personal information that is no longer necessary in light of the purpose of employment placement.

Documents necessary for permission

■Application form
① Paid employment placement permission application form
② Paid employment placement plan
※It is necessary for each business office to report multiple business establishments.
③ Reporting fee notification form
※Submitting is unnecessary when it is based on the upper limit control fee.

■Attached document

In the case of corporation
① Articles of Incorporation or donation
※If there is a change in the contents, please also attach the minutes of the shareholders meeting.
② All history items Certificate (Registered transcript)
③ A copy of the resident’s card of officers (including corporate auditors)
④ Resume of officers (including corporate auditors)
※Described so that there is no space blank in history such as leaving company.
※Describe whether there is reward or punishment.
※Photo is unnecessary.
⑤ The most recent balance sheet and income statement, statement of changes in shareholders’ equity
(6) A copy of the tax return declaration of corporate tax (Appended Table 1 “Acceptance of Tax Office” and Appended Table 4)
⑦ Tax certificate for corporate tax (Part 2 for income amount)
⑧ Documents certifying the right of use of the business establishment (lease contract etc)
※In case of own ownership, a transcript of the real estate registry of the building
⑨ Commission table
⑩ Layout drawing of the office
⑪ A copy of the resident card of employment placement officer
⑫ Resume written by employment placement officer
※Described so that there is no space blank in history such as leaving company.
※Describe whether there is reward or punishment.
※Photo is unnecessary.
⑬ Copy of attendance certificate of employment placement workshop seminar
⑭ Personal Information Adequacy Management Regulations
⑮ Regulations concerning the management of operations
⑯ Fees table
※When notifying more than one place of business, the above ⑧ to ⑯ are necessary for each business office.

In case of individual

① Copy of resident’s card of employer
② Career’s resume
※Described so that there is no space blank in history such as leaving company.
※Describe whether there is reward or punishment.
※Photo is unnecessary.
③ Copy of income tax declaration form
④ Income tax payment certificate (Part 2 income amount)
⑤ Income tax blue return statement
⑥ Documents certifying the usage rights of the business establishment (lease agreement etc.)
※In case of own ownership, a transcript of the real estate registry of the building
⑦ A copy of the resident card of employment placement officer
⑧ Resume written by employment placement officer
※Described so that there is no space blank in history such as leaving company.
※Describe whether there is reward or punishment.
※Photo is unnecessary。
⑨ Copy of attendance certificate of employment placement workshop seminar
⑩ Personal Information Adequacy Management Regulations
⑪ Regulations concerning the operation of business
⑫ Commission Chart
※When reporting multiple establishments, the above ⑦ to ⑫ are required for each business office.

Legal fees required for permission

Stamp fee 50,000 yen + 18,000 yen × (number of business establishments carrying out employment placement projects -1)
Registration license tax 90,000 yen
(Example 1) When conducting a fee-based employment placement business with only one place of business
Total legal fee is 140,000 yen (50,000 yen + 90,000 yen = 140,000 yen)

The above-mentioned matters will be an outline of the application for approval and approval for the paid employment placement business. For details, we recommend that you contact a social insurance labor specialist who is specializing in permission application for temporary staffing services.

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What do you think?

In order to support businesses who are considering application for permission of recruitment work, the group provides substitute service for recruitment of recruitment work by specialized social insurance labor.
By receiving expert assistance familiar with the recruitment industry, it is possible to smoothly acquire the permission of the recruitment industry.
If you are planning to enter the recruitment industry, please do not hesitate to contact us.