This is purely a hypothetical situation.
Let’s say I’m employing a foreigner as a seishain and they have a humanities visa. I want to fire them but don’t want to go through the headache of trying to terminate a seishain. But their status of residence is up for renewal soon. Obviously they can fill out the company’s side of the application, but what if the company refuses to issue the financial statement document that goes with it? Could that block the renewal, leading to the employee losing their status of residence and thus being for all intents and purposes terminated, or is there some kind of deterrent to that? Some way of compelling the employer or going around the requirement to provide that paper?
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No. As long as you’re employed they have to help you renew your visa by providing you with the required employer side paper work:
https://www.japaneselawtranslation.go.jp/notices/view/128
ロ 事業主は、外国人労働者が在留資格を変更しようとするとき又は在留期間の更新を受けようとするときは、その手続を行うに当たっての勤務時間の配慮その他必要な援助を行うように努めること。
“*(b) If a foreign worker intends to change their status of residence or renew their period of stay, an employer should strive to give consideration regarding working hours required for undertaking those procedures and provide other necessary support.*”
So they have to fire your or (if under fixed-term contract) not renew your contract. Which requires them to follow labor standards laws and labor contract laws.
As you state in your OP, If this practice was allowed it would make employers able to dispose of foreign employees on a work visa by default. By just letting their visa expire. Which is why it’s not allowed.