Japanese company's bizarre punishment for not meeting sales targets

NEO Corporation is facing public outrage after reports of shocking punishments for staff who didn’t meet sales targets. The punishments the underperformers allegedly received are shocking, to say the least.

The Japanese company, based in Osaka, sells and instals electricity and energy-saving products. It has nine branches in Japan and claims high salaries in its job ads.

According to the company, the average annual income for sales staff in 2024 was $97,000 ( ₹83 lakh). It also claims that 57.1 per cent of its salespeople earn $69,500 (nearly ₹60 lakh a year).

However, what has shocked social media is how the company allegedly treats its employees.

Former employees said underperformers were forced to take nude photos. They were sexually abused by the boss, who allegedly grabbed the underperformers’ private parts, according to the South China Morning Post.

Five ex-workers filed a lawsuit in March. They accused the company of verbal abuse and harassment. One worker said, if someone failed to make a sale, the manager forced them to take nude photos. Then, he shared them with others and sent the victim proof.

According to one employee, his boss often punished him by painfully grabbing his private parts. When he complained, the manager laughed and said it happened to everyone. The worker later developed depression.

Reports also reveal verbal abuse, forced unpaid overtime and even slapping by senior staff. The company deducted sales commissions unfairly and sometimes made employees return money on payday.

Harsh fines were also imposed for things like traffic violations, some as high as $42,000 ( ₹36 lakh). In March, five ex-employees filed a lawsuit, demanding $132,000 (₹1.13 crore) in damages for mental harassment and illegal pay cuts.

The incident has shocked many. It has raised serious concerns about workplace abuse in Japan’s corporate sector.

One person called it “more than workplace harassment”, according to SCMP. Another said asking for and sharing private photos is a crime.

“We thought television dramas were exaggerated, but reality is even more terrifying,” came from another.

Company statement

Neo Corporation has, however, denied all the allegations and emphasised its anti-harassment policy. “Harassment has no place in our corporate culture. There are also factual errors based on one-sided perspectives,” SCMP quoted the company as stating.