Foreign residents in Japan are being urged to exercise caution when using retirement agency services following the arrest of two executives from "Momuri," one of Japan's prominent job resignation support companies. The arrests, reported by NHK on February 3, 2025, have exposed serious irregularities in how some retirement agencies operate, raising important questions about worker protections during a critical period of annual wage negotiations. According to NHK, the president and another executive of the company operating Momuri were arrested on suspicion of violating the Attorney Act by illegally receiving referral fees for directing clients to lawyers. The investigation revealed that payments from lawyers were disguised as "support funds" to a partnered labor union, which authorities suspect may have existed in name only without substantial organizational structure. Retirement agency services, known as taishoku daikō in Japanese, have grown increasingly popular in Japan's rigid employment culture, where workers often face pressure or difficulty when attempting to resign. These services handle the resignation process on behalf of employees, negotiating with employers and managing paperwork. However, the Momuri case highlights a concerning regulatory gap: while labor unions can legally negotiate on behalf of workers, companies without proper union status cannot legally represent employees in employment matters, and lawyers cannot pay referral fees to non-legal entities. For expats working in Japan, this scandal serves as a critical reminder to verify the legal status of any service claiming to assist with employment matters. According to NHK's reporting, the suspects deny the charges, but the case has prompted authorities to examine whether the labor union involved was merely a front for circumventing legal restrictions on legal referrals and employment negotiations. The timing of these arrests coincides with Japan's annual spring labor negotiations, known as shuntō, which determine wage increases across industries. On February 3, according to NHK, the heads of the Japan Chamber of Commerce and Industry and Rengo, Japan's largest labor union confederation, met to discuss this year's wage negotiation strategy. Both parties agreed that achieving sustainable wage increases exceeding inflation requires proper price pass-through mechanisms, allowing companies to raise prices appropriately to cover increased labor costs. For foreign workers, these spring negotiations have significant implications. Rengo has historically advocated for wage increases that benefit all workers, including non-unionized employees and foreign residents. The emphasis on "appropriate price transfer" suggests that both business and labor leaders recognize that wage increases must be supported by broader economic adjustments rather than simply squeezing company margins. The convergence of these two stories—the retirement agency scandal and spring wage negotiations—underscores the complex landscape of labor rights in Japan. While the country has robust labor protections on paper, enforcement gaps and cultural factors can create vulnerabilities, particularly for foreign workers who may be less familiar with their rights or face language barriers. Experts recommend that foreign residents facing workplace issues should first consult with established labor unions, certified labor and social security attorneys (shakai hoken rōmushi), or official labor consultation offices operated by prefectural governments, known as rōdō sōdan. These official channels provide legitimate support without the legal ambiguities that have plagued some commercial retirement agencies. As spring wage negotiations progress through March, foreign workers should monitor whether their employers announce wage increases and ensure they receive equal treatment regardless of nationality. Japanese labor law prohibits discrimination based on nationality, and the outcomes of shuntō typically set benchmarks that influence compensation across entire industries. The Momuri scandal serves as a cautionary tale about the importance of using properly credentialed services when navigating Japan's employment landscape, while the spring wage talks offer hope for improved compensation in an inflationary environment. Foreign residents should stay informed about both developments to protect their rights and maximize their earning potential in Japan's evolving labor market.