What’s it Like Working for a Black Company in Japan?

Japan is known for its strong work ethic, where staff are expected to dedicate themselves to a company and the company will take care of them in turn. However, this dedication to the company can be exploited by so-called “black” companies (ブラック企業, burakku kigyo) that take advantage of the same corporate values that fuel Japan’s business success to trap workers in a hamster wheel of low-paid, thankless overwork. That said, what’s it like working for a black company in Japan?

Despite Japan’s recent labor reforms, black companies continue to exploit legal loopholes, often targeting young or inexperienced workers who struggle to resist unfair conditions. Some workplace horror stories are so extreme they should come with a content warning.

If you’re concerned, check out our posts on what it’s like to work for a legitimate Japanese company or explore books on Japanese work culture. These resources can help you quickly distinguish between good and bad employers.

What are Black Companies?

The term burakku kigyou became widely known in the 2000s, as a series of media reports and lawsuits brought the public’s attention to labor conditions in Japan. It was initially coined by young IT workers but has since been applied across various industries. 

Black companies are notorious for exploitative practices, such as disregarding labor laws, enforcing excessive working hours without proper compensation and subjecting employees to workplace harassment

The Japanese government has since introduced labor reforms to combat these issues, but black companies still exist, particularly in fledgling industries like IT, food service and manufacturing.

Common signs of black companies are:

• Long hours: Employees are often required to work well beyond legal limits, sometimes exceeding 80 hours of overtime per month or more.
• Lack of proper compensation: Many black companies either underpay overtime or don’t pay it at all, despite legal requirements.
• Overwork (karōshi risk): Excessive workload can lead to severe stress, burnout, and even karōshi (death from overwork).
• Discouraging complaints: Employers may pressure workers to stay silent about mistreatment, sometimes using intimidation tactics.
• Unpaid or forced overtime (“service overtime,” or sabisu zangyo)
• High turnover rates: Many employees quit within months due to poor working conditions.
• Excessive demands on employees: Workers may be expected to show extreme loyalty, sacrificing personal time.
• Harassment and bullying (power harassment or pawa hara): Toxic work environments where managers abuse their authority.

Exploitative Practices of Black Companies

Black companies persist in Japan despite labor laws due to a combination of cultural, economic, and regulatory factors. Many black companies take advantage of Japanese workplace culture and social norms to exploit their employees. Common tricks include:

• “Loyalty to the company” mentality: Many workers, especially older generations, were raised with the belief that dedicating oneself to the company is virtuous. Black companies exploit this, making it seem like dedication when, in reality, employees are being exploited.
• Gaman (我慢) culture: The Japanese concept of enduring hardship without complaint (gaman, or “bear your burden”) discourages employees from resisting harsh work conditions.
• Seniority-based hierarchy: Younger employees may feel powerless to challenge abusive practices from senior staff.
• Weak enforcement of labor laws: Labor inspections are infrequent, allowing exploitative companies to operate with little oversight.
• Light penalties for offenders: Unlike in the U.S., large settlements or severe consequences for labor violations are rare in Japan.
• Difficult legal action: Employees often hesitate to sue due to the long legal process, high costs and fear of career damage.
• Stigma against job-hopping: Changing jobs is still somewhat frowned upon, leading many employees to endure harsh conditions rather than risk being seen as uncooperative.

Many black companies operate in a legal grey zone, disguising exploitative practices within a corporate culture that tacitly endorses them. For example, in the gaming industry, excessive overtime is often reframed as “crunch time,” making 80-hour weeks for 40 hours of pay seem like a standard practice before a game’s release. 

Similarly, employees at black companies are pressured into working extra hours under the guise of “self-improvement” or “team contribution,” creating just enough ambiguity to skirt labor law violations.

Workplace Harassment and Discrimination

To fully understand the problems with black companies, it’s important to recognize the tactics they use, especially those who try to stand up for their rights. While workplace harassment comes in many forms, the most common types include:

• Power harassment (pawa hara, パワハラ): Abuse of authority, such as bullying or intimidation from superiors.
• Sexual harassment (seku hara, セクハラ): Unwanted sexual advances, inappropriate remarks, or coercion.
• Gender/sexual orientation harassment (SOGI hara, SOGI ハラ): Discrimination based on gender identity or sexual orientation.
• ‘Reverse’ sexual harassment (gyaku seku hara, 逆セクハラ): Typically refers to a powerful woman harassing a man, as depicted in Disclosure (e.g., Demi Moore’s character).
• Academic harassment (aka hara, アカハラ): Harassment within academic institutions, often involving control over resources, research or promotions. This also applies to black companies with research laboratories.

Why Do Black Companies Foster Toxic Workplaces?

While creating a toxic work environment may seem counterproductive, it actually benefits black companies in several ways:

• Reducing permanent staff: Permanent employees have more rights, so companies avoid granting permanent contracts by frequently hiring and firing workers. (In Japan, workers typically become permanent employees after five years.)
• Unpaid/excessive overtime: Long hours without pay help cut labor costs.
• Below-minimum wage pay: Companies manipulate contracts to avoid paying fair wages.
• Manipulating vacation policies: Employees are either denied vacation or restricted to inconvenient dates, making meaningful breaks impossible.
• Sudden terminations and unfair evaluations: Workers may be fired arbitrarily, and vague performance metrics may be used to justify dismissals or deny promotions.
• Over-reliance on part-time or contract workers: Companies favor temporary employees, who have fewer labor protections and are easier to replace.
• Punishing pregnancy: Pregnant employees may be illegally fired, or paternity/maternity leave may be denied to cut costs.

The Impact on Employees

Working long days at a company that doesn’t value your contribution and actively exploits you makes you feel burned out. There are a number of effects of black companies, and if you think that these are similar to your situation, you will want to get help:

• Mental and physical toll: stress and burnout 
• Health deterioration
• Real-life cases of karoshi (overworking to the point of death)
• Workforce stability is reduced.

Protecting Yourself: Resources and Red Flags

There are many resources that workers can use to refrain from falling into the trap. Message boards are full of advice, warnings and tips for workers:

• Check and avoid any of the companies on the ‘Most Evil Corporations’ award site. 
• A map of black companies, marked with those accused of karoshi.
• Government reports: The Ministry of Health, Labor and Welfare published a “Companies with Labor Violations” List.
• Online company reviews: Read reviews posted on sites such as 転職会議 (Tenshoku Kaigi), みん就 (Minshu), キャリコネ (career connections) and OpenWork.
• Labor Laws & Worker Protections – Read up on employee rights on General Union and Labor Consultation Offices

While Japan has made efforts to combat black companies through work-style reform (hatarakikata kaikaku, 働き方改革) and legal changes, cultural inertia, weak enforcement and economic pressures allow them to persist.

If you’re looking for better work opportunities, check out GaijinPot Jobs for positions at reputable companies that value their employees.

Have you ever worked at a black company? What was your experience like? When did you realize it was a black company? Share your story in the comments.

This site is protected by reCAPTCHA - Privacy Policy - Terms of Service