An employee of a major beauty salon operator who sued the company over alleged acts of "maternity harassment" has reached an out-of-court settlement with the firm.

The woman withdrew the suit filed with the Tokyo District Court after her employer, Fuji Beauty, which operates the Takano Yuri Beauty Clinic chain, agreed to settle on Thursday for an undisclosed sum.

The plaintiff had demanded ¥16 million in damages and unpaid overtime, claiming that her request for a transfer and reduced workload during her pregnancy earlier this year were rejected, and that she was forced to work long hours without pay.

The beauty salon chain also agreed to improve the working conditions for its female employees, according to Esute Union, a labor union to which the plaintiff belonged.