By Yating Yang
A Japanese company has sparked outrage by dishing out degrading punishments to staff who fail to meet sales targets.
Underperforming employees were forced to take nude photos of themselves and were physically assaulted, including having their testicles grabbed by the boss.
The incident came to light after five former employees of the Neo Corporation, headquartered in Osaka, filed a lawsuit in March alleging verbal abuse and power harassment.
Founded in 1999, the Neo Corporation sells electricity and energy-saving equipment, as well as installing it. The firm has nine branches across Japan.
The company had previously drawn attention for its bold recruitment advertisements, which claimed that the average annual income for sales staff in 2024 was 14.27 million yen (US$98,000), with 57.1 per cent of its salespeople earning more than 10 million yen (US$70,000) a year.
However, one employee revealed that sales managers would force workers who failed to make a sale in a day to take nude photos of themselves.
The boss then circulated the nude photos among other colleagues and sent the targeted employee a screenshot, saying: 鈥淚t has been shared.鈥
The employee also disclosed that his superior frequently punished him in a humiliating manner by grabbing his testicles.
鈥淢y 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,鈥 he said.
His complaint to the branch manager was simply laughed off.
鈥淓veryone has gone through this,鈥 the manager told him.
He was later diagnosed with adjustment disorder and depression.
It was also reported that overtime and verbal abuse were commonplace. One branch manager was allegedly slapped by a company director for skipping a company dinner.
The company also reportedly deducted sales commissions, sometimes even requiring employees to transfer money back to the company on payday.
It also imposed severe penalties, including fines for traffic violations, some reportedly reaching as high as six million yen (US$42,000).
In March, five former employees filed a lawsuit against the company, seeking 19 million yen in damages for improper wage deductions and workplace bullying.
The company has denied all allegations.
It said: 鈥淗arassment has no place in our corporate culture. There are also factual errors based on one-sided perspectives.鈥
In Japan, no criminal penalties are stipulated for corporations or individuals responsible for workplace harassment, nor are there clear legal grounds for victims to claim damages, according to the Women鈥檚 Studies International Forum.
The incident has sparked outrage online.
One person wrote: 鈥淯nbelievable. This goes way beyond workplace harassment.鈥
Another said: 鈥淔orcing subordinates to send intimate photos and then circulating them is a crime!鈥
While a third added: 鈥淲e thought television dramas were exaggerated, but reality is even more terrifying.鈥