Japanese Company Faces Lawsuit Over Alleged Workplace Harassment and Degrading Punishments
A lawsuit filed against Neo Corporation, an Osaka-based electrical equipment company, has brought allegations of severe workplace harassment and degrading punishments to public attention. Five former employees initiated the legal action in March, seeking 19 million yen (approximately US$132,000) in damages for what they claim were improper wage deductions and workplace bullying.
According to the plaintiffs, employees who failed to meet daily sales targets were subjected to humiliating penalties. One former employee alleged that sales managers required underperforming staff to take nude photographs, which were then circulated among colleagues, with screenshots sent to the targeted individual accompanied by the message, “It has been shared.” The same employee reported physical assault, including having their testicles grabbed by a superior, which they described as intensely painful despite the superior’s claim of minimal force. The employee stated that their complaint to a branch manager was dismissed with the remark, “Everyone has gone through this.” The individual was later diagnosed with adjustment disorder and depression.
Additional allegations include routine verbal abuse, excessive overtime, and physical reprimands. One branch manager was reportedly slapped by a company director for missing a company dinner. The lawsuit also claims that Neo Corporation deducted sales commissions, sometimes requiring employees to transfer money back to the company on payday. Severe fines, including penalties for traffic violations reportedly as high as 6 million yen (US$42,000), were also imposed.
Founded in 1999, Neo Corporation specializes in selling and installing electricity and energy-saving equipment, operating nine branches across Japan. The company has previously promoted its high-earning potential, advertising an average annual income of 14.27 million yen (US$97,000) for sales staff in 2024, with over half of its salespeople earning above 10 million yen annually.
Neo Corporation has denied the allegations, stating that the complaints contain “factual errors based on one-sided perspectives” and emphasizing that “harassment has no place in our corporate culture.”
In Japan, workplace harassment remains a complex issue. According to a 2020 study published in the *Women’s Studies International Forum*, no specific criminal penalties exist for corporations or individuals responsible for workplace harassment, and victims often face challenges in claiming damages due to unclear legal grounds. Efforts to address workplace harassment have gained traction in recent years, with Japan’s Ministry of Health, Labour and Welfare introducing guidelines in 2020 requiring companies to establish measures to prevent power harassment. However, enforcement and legal recourse remain limited.
The case has triggered significant public reaction online. Social media users expressed shock, with one commenting, “Forcing subordinates to send intimate photos and then circulating them is a crime!” Another remarked, “Reality is even more terrifying than television dramas.”
The lawsuit is ongoing, and further developments are expected as the court examines the claims and the company’s response.
