Japan’s Whistleblowers Face Severe Financial Penalties for Reporting Misconduct

‘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 to work. Kato is among a growing number of whistle-blowers in Japan who say laws meant to protect...

By Julian Ryall