‘Chilling effect’: Japan’s whistle-blowers weigh high price of speaking out
Yutaka Kato* knew there would be risks when he reported suspected misconduct by his employer to Japanese authorities. What he did not expect, he said, was a 47.88 million yen (US$300,000) damages claim from that employer – the Japanese subsidiary of US-listed medical device manufacturer STAAR Surgical – along with the prospect of years in court and the uncertainty of whether he would ever return…
Yutaka Kato, a former employee of the Japanese subsidiary of medical device manufacturer STAAR Surgical, has expressed concern over the financial burden and professional repercussions of being a whistle-blower in Japan. Upon reporting suspected misconduct, Kato faced a damages claim of 47.88 million yen (US$300,000) from his former employer, along with the potential for years of litigation and uncertain employment prospects.
Despite the Tokyo District Court dismissing the damages claim in December, Kato's case is currently on appeal. He remains apprehensive about the upcoming ruling on September 3, as the company has appealed to Japan's Supreme Court. Legal experts argue that the Whistleblower Protection Act, introduced in 2004, has limitations that allow employers to pursue damages claims based on related conduct, rather than the act of whistle-blowing itself.
This has left many whistle-blowers financially drained and professionally isolated, despite the Act's intent to protect workers from retaliation.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
