Forced nudes, testicle-grabbing: Japanese firm abuses staff for missing targets
What's the story
Osaka-based Neo Corporation has come under fire for its inhumane treatment of underperforming employees. The company, which specializes in electricity and energy-saving equipment sales and installation, is accused of subjecting its workers to humiliating punishments for not meeting sales targets. These include being forced to take nude pictures and physical assaults, such as testicle-grabbing by their superiors. Founded in 1999, the Neo Corporation has nine branches across Japan.
Legal action
Lawsuit reveals toxic work environment
The shocking revelations about Neo Corporation's treatment of its employees came to light when five former workers filed a lawsuit against the company in March. The lawsuit alleged verbal abuse and power harassment, and sought ¥19 million (around $132,000) in compensation. Despite these allegations, Neo Corporation had previously boasted about its high-paying job offers in bold recruitment advertisements.
Employee's complain
Neo Corporation employee alleges abuse
An employee at Neo Corporation alleged that sales managers forced staff who failed to make a sale to take nude photos of themselves. These images were then circulated among colleagues, and the targeted employee would receive a screenshot with the message: "It has been shared." The employee also reported repeated physical abuse, including being punished by his superior through acts like grabbing his testicles.
Manager's reaction
How a manager handled the complaint
The employee said, "My superior claimed he was not using much force, but it was so painful I could hardly speak. This kind of thing happens all the time." When he reported the abuse to the branch manager, the complaint was dismissed with laughter. "Everyone has gone through this," the manager told him. The employee was later diagnosed with adjustment disorder and depression.
Workplace scenario
Culture of routine overtime and verbal abuse
Reports also indicated that overtime and verbal abuse were routine at Neo Corporation. In one instance, a branch manager was allegedly slapped by a director for missing a company dinner. The firm was also accused of withholding sales commissions and, at times, demanding employees return money on payday. Harsh penalties were imposed for various infractions, including traffic violations, with some fines reportedly reaching up to ¥6 million (around $42,000).
Company's response
Company has denied all allegations
Neo Corporation has rejected all accusations, stating: "Harassment has no place in our corporate culture." According to the Women's Studies International Forum, Japan doesn't impose criminal penalties on corporations or individuals for workplace harassment, nor does it offer clear legal grounds for victims to seek damages. The incident has triggered widespread outrage online. One user commented: "Unbelievable! This goes way beyond workplace harassment." Another posted, "Forcing subordinates to send intimate photos and then circulating them is a crime!"
Salary claims
Neo Corporation's claims in recruitment ads
The recruitment ads from Neo Corporation had claimed that the average annual income for sales staff in 2024 would be ¥14.27 million (approximately $97,000). The company also boasted that 57.1% of its salespeople earn over ¥10 million a year. However, these claims now seem to be overshadowed by the allegations of abuse and harassment against the firm.