Worker’s dismissal over improper insurance sales scandal overturned

A Japanese court has overturned the dismissal of a post office worker for his alleged involvement in improper sales of Japan Post Insurance products.

In 2019, Japan Post Holdings came under fire for double-charging premiums to customers and other sales irregularities, leading to a lengthy investigation and the resignation of several top officials of the formerly government-owned company.

Following the improper sales scandal, over 3,000 employees of Japan Post Holdings received punishments such as suspensions, and 28 were fired, Jiji Press reported.

However, the Sapporo District Court sided with the plaintiff and ruled that his dismissal was illegitimate. On Thursday, the court also ordered Japan Post to pay unpaid wages to the plaintiff, who is in his 40s. Japan Post lodged an appeal against the ruling on the same day.

The ruling said that the plaintiff was formerly in charge of sales at a post office in Hokkaido and that he was dismissed in September 2020 for “concluding a total of 19 new contracts for insurance products without checking customers’ intentions.”

The ruling was the first on a total of six related lawsuits filed across three district courts, the report said. Cases have also been filed in Mito in Ibaraki Prefecture and in Kanazawa in Ishikawa Prefecture.