Tears For Anna - A Young Chartered Accountant What India Lost - Case of Prima Facie Social Audit from Pune's Ernst & Young.

Tears for Anna. Very Long tears for Anna & Salute to National Human Right Commission.   

Anna, was a young Chartered Accountant from Kochi. She joined  Ernst & Young office at Pune as Associate. She has strong vision to look the beautiful world. The poor work culture killed her. She died under cardiac arrest on 20 July 2024.  She has given a long complain about the culture of Ernst & Young to her mother. The  long working hours and heavy work load, killed her. This would have been similar unreported death.  But, her mother reported it in a long letter, to the insensible society. 

A "Prima Facie" Social Audit conducted at Ernst & Young office at Pune, reveals that  the first primary and mandatory requirement of  Labour Law Compliance under the MSE Act 2017 is skipped here intentionally. This was kept skipped even on the date of death. This was known to the Ernst & Young that their culture is different, then the work culture permitted under the Indian Law. Otherwise, there is no other valid reason to skip.    

One can only imagine the ugly work culture, when foundation is missing. Ernst & Young practiced in India the ugly work culture of Europe of unproductive long working hours. This is also not permitted now in Europe, after the intervention of the ILO and the UDHR. Then why the Ernst & Young, practiced it in India. The major violations are reported here:     

Violation Under Convention No. 30 of the ILO.  

The International Labour Organization (ILO) Convention No. 30 regulates the "Hours of Work" limits  to 48 hours per week or eight hours per day. India is signatory of this convention. Ernst & Young violated the provision.  

Violation Under Article 24 of the UDHR. 

The Universal Declaration of Human Rights Article 24, states that everyone has the right to rest and leisure, including availability of reasonable working hours. India is signatory of this declaration. The Employee Human Right is outlined in Article 24 of the UDHR. Ernst & Young violated the provision. 

Violation Under Maharashtra Law: 

1. Ernst & Young was required to be covered under Section 6 and Section 1 (3 ) (a) of the Maharashtra SE Act  2017. Ernst & Young failed to comply this compliance.

2. Ernst & Young violated openly Section 12 of the Maharashtra SE Act. Anna was forced to work more than nine hours in a day or  more than 48 hours in a week. 

3. Ernst & Young violated Section 13 (2) of the Maharashtra SE Act. Her express written consent was not taken to work in any part of the day falling under  9-30 p.m and 7-00 a.m bracket. The violation of this Section 13 (2)  threatened her dignity, honor and safety.

Violation Under Central Law. 

4. Ernst & Young failed to give notice to the Government Authority under Section 73 (1) of the Central Law on Social Security 2020. This was a poor work culture, which resulted into the death of employee. This was the cause of excess work load and no rest. She suffered work related injury leading to cardiac arrest. Cardiac arrest as claimed by Mother is not easily ruled out. At young age of 26 cardiac disorder is attributed only due to long working hours and stress.

5.  Ernst & Young failed in its duty to provide right work culture under Section 6 (1) of the OHS Act 2020. The workplace was not  free from hazards which cause or are likely to cause injury to the employee.

6. Ernst & Young failed to provide notice to the authority under Section 10 (1) (c) of the OHS Act 2020. 

7. Ernst & Young failed to provide requirement under Section 23 (1) on Occupational Health and Safety maintained under the OHS Act 2020.  

Some Important Suggestion: 

1. The Institute of Social Auditor of India, now working under Institute of Chartered Accountants of India has responsibility to ensure Social Audit norms, through The Members of the Institute of Social Auditor of India. This shall  ensure in Social Audit, protection of  social safeguard including labour law protection & human right protection.  This is now in practice in SEBI listed entity. This should be  compulsory for all business operation registered under the Companies Act 2013. 

2. The SEBI in turn should demand from such business operation,  Social Audit Report on the fulfillment and discharge of their duties towards labour law protection.  SEBI should ban such companies to perform if Social Audit report is not submitted and remedial measures are not taken.  The present arrangement of Social Audit performed in Social Stock Exchange shall be extended here. 

3. The National Human Rights Commission (NHRC) and Union Ministry of Labour and Employment should ensure compulsory social audit of such business premises as suggested in point one and two above. 

 4. Long working hours  is the ugly culture of Europe. How this has been permitted in India. This is a point of examination. In May 2024 similar employee death reported from Bank of America in May 2024. The case at Bank of America remained hidden.   Though EY Chairman Rajiv Memani, has regretted. But this is not the solution. Continuous Social Audit is required of such premises. This move should be taken by the Ernest & Young. It should voluntarily allow Social Auditors to examine the loopholes and lapses. Honestly that should be rectified and improved. Rather than hiding the matter.  

5. This raise serious issues regarding challenges faced by young citizens at work, suffering from mental stress, anxiety, and lack of sleep, adversely affecting their physical and mental health while chasing impractical targets and timelines.  This is only Independent Social Audit, which should be  performed aggressively by the business units. 

6. The businesses should take accountability for safeguard, labour and human rights issues and regularly update and revise their work and employment policies and regulations to ensure alignment with global standards, through continuous Social Audit.  

7. This is expected that the Union Ministry of Labour and Employment, shall implement Social Audit of all business premises immediately in phased manner. Lesson can be learnt how SEBI implemented Social Audit in its listed entities. The proposed steps shall  ensure that such incidents do not recur.

8. The mother of the deceased girl, in her letter, exposes poor work culture of Ernst & Young. No body from the company attended the funeral of one of its own employees. Mandate is on the Ernst & Young to improve culture side. This has collapsed. This is not known,  whether legal dues have been paid or not to Anna's Mother?   This is only the  further investigation. 

9. National Human Right Commission is prayed to intervene and give direction to the Ministry of Corporate Affairs, to review the existing legislations and regulations relating to the business environment and human rights through Third Party Social Audit. There is violation of  Companies Act 2013, under Section 134(5), Section 204 and Section 205. In these different Sections   requirement of Labour Law Compliance is needed. Under Section 134(5)(f) – the "Director Responsibility Statement" is required from Director. Director says in this statement:-“Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.” The Director Responsibility Statement submitted by Ernst & Young is bogus. Again  under Section 204(1), where  Secretarial Audit is required for reporting of "compliance of all applicable laws to companies" is also bogus. Thus the report of the "Company Secretary" and the "Director Responsibility Statement" are both bogus. Direction be given to submit these two reports only after  Third Party Social Audit. Now this is missing.   

10. ICSI ( Institute of Company Secretary of India ) should also check how the sanctity in the above mentioned Section 204(1) relating to the  Secretarial Audit is protected.  This should must be based on the Independent Third Party Social Audit report. Now after the SEBI intervention the ICSI is also regulating the Social Audit norms. This should be extended to the businesses covered under the Companies Act 2013.    

The reform is necessary to stop another death of Anna.

( The National Human Rights Commission (NHRC) of  India now has taken the cognizance of  this case. The Government of India has also started the investigation.  )