Labor authorities have recognized that the mental illness suffered by an executive of the Japanese arm of Swiss watchmaker Swatch Group was caused by bullying at the hands of the branch's president, constituting an industrial accident, the employee's union said Wednesday.

The executive, a Japanese woman in her 50s, claims she was relentlessly scolded by the president of Swatch Group (Japan), a female foreign national, and subjected to power harassment, as workplace bullying is referred to in Japan.

The woman was allegedly frequently reprimanded with insults by the president, such as being told she was stupid, and accused of low performance, leading to her developing an adjustment disorder.