Japan AGC unit loses lawsuit for indirect gender discrimination

In a groundbreaking ruling, a subsidiary of Japanese glass-maker AGC has been ordered to pay damages for indirect gender discrimination in a lawsuit filed by a female clerical worker. The Tokyo District Court ruled in favor of the 44-year-old plaintiff, who claimed that AGC Green-Tech limited its corporate housing program to career-track employees, all of whom were men.

The court ordered AGC Green-Tech to pay ¥3.7 million to the plaintiff, citing the revised equal employment opportunity law that prohibits indirect gender discrimination by imposing requirements that are difficult for women to meet. Despite having more female clerical workers than male career-track employees, the company only allowed the latter to use the corporate housing program.

While the court acknowledged that the different treatment did not constitute direct gender discrimination, it concluded that the company’s actions gave a disadvantage to women without a rational reason, thus constituting indirect discrimination. The ruling emphasized the need for a workplace free of discrimination where women can express their opinions and abilities.

The plaintiff expressed her satisfaction with the ruling, stating that she hoped the company would create a more inclusive work environment. Lawyer Kota Hirai hailed the ruling as “epoch-making,” as it is believed to be the first in Japan to recognize indirect gender discrimination. The ruling serves as a significant milestone in the fight against gender discrimination in the workplace.