BRSR (SEBI ) Audit - On Identifying Poor HR Practice- Human Right Violation - A Case from WIPRO Limited.

 BRSR  (SEBI)  AUDIT : HR Practice - Human Right Violation  

* Birendra K Jha                                                                                                                                                                               Certified Social Auditor; Practitioner Social Impact Assessment Audit; Practitioner BRSR (SEBI ) Audit. EMail: birendrajha03@yahoo.com

Wipro Limited is a SEBI listed entity. This entity is mandated to report to the SEBI on BRSR Principle 5 after Third Party Audit. HR Practice is poor or up to the mark is the fundamental core of the Sustainable Development Goal Number 8, which demands "Decent Work Culture" in the HR Practice. The Data Entry Operators case of Wipro Limited on failure of Minimum Wage payment is serious threat to the sustainability. SEBI should must take necessary countermeasure.  

 

In HR Practice if employees are not paid Minimum Wage, then this is worst culture of any Organization. This is not only extreme violation of the Human Right protection, but the Minimum Wage "Non-Payment is Unpardonable Offence." This is Constitutional Prohibition under Article 23. This is Human Right violation. Such violation of Human Right is now reported to SEBI under the Business Responsibility and Sustainability Reporting (BRSR) in India under  Principle 5. The Examples of Human Rights Addressed in BRSR is completely HR Practice. The BRSR  addresses  Minimum Wages; Prevention of Sexual Harassment; Child Labor;  & Other Human Right Issues like  Freedom of Association ( Trade Union );  Prohibiting Discrimination etc. 

SEBI should must tighten the provision of BRSR on Third Party Mandatory Audit to detect poor HR Practice, which generates Human Right violation. An example is here where  near about 6000 employees were paid less than the Minimum Wage.  This breaks down the  Sustainable Development Goals (SDGs) Goal 8. That is intrinsically linked to labour laws and human rights which focuses on "Decent Work and Economic Growth".  The statutory or internal auditor  failed to detect the break down of "Decent Work". They focused on financial figures. The Directors also remained silent on this massive  anomalies in their Annual Report. The Social Auditors  should must focus on the HR Practice while auditing the Principle 5 of the BRSR. Industries manipulates the liability of the "Principal Employer" to reduce cost. This is ugly form of HR Practice. This should must not be permitted in India. SEBI as guardian of the sustainability should must discourage this type of practice. 

Before the Wipro Limited case is taken here this is important to know what the Hon'ble Supreme Court has said in Sanjit Roy vs State of Rajasthan case. The  Hon'ble  Court held the condition of the "Forced Labour", an offence, mentioned in the Article 23 of the Constitution of India. The Hon'ble Supreme Court directed  in these strong words:  

"HELD: 1. Where a person provides labour or service to another for remuneration which is less than the minimum wage, the labour or service provided by him clearly falls within the meaning of the words 'forced labour' and attracts the condemnation of Article 23. Every person who provides labour or service to another is entitled at the least to the minimum wage and if anything less than the minimum wage is paid to him, he can complain of violation of his fundamental right under Article 23 and ask the court to direct payment of the minimum wage to him so that the breach of Article 23 may be abated". 

Hon'ble Supreme Court also in YA Mamarde and others  Vs. Authority Under The Minimum Wages Act Nagpur - reinforces the rights of workers to fair compensation where the "Ordinary Rate" is defined as Minimum Wage. Most industries in India, in the name of cost cutting defines "Ordinary Rate" something poor rate but other than  the Minimum Wage.  

This demonstrates Organization practicing wage payment below Minimum Wage,  is forcing employees to work in "Forced Labour" condition in India. This is banned completely. Company entity can't pay wages below the legally mandated minimum. This essentially forces workers to accept less than what they are entitled to. This is effectively trapping workers in a situation where they are compelled to work for inadequate compensation. This is forced labour condition.  This is completely Human Right violation.  

Data Entry Operator Case: 

The projected case  is that about 6000 Data Entry Operators were engaged by the Wipro Ltd for design, development and maintenance of the 'NRC Software Solution' and for setting up of the 'NRC Seva Kendras' in the State of Assam. The "Wipro Limited" was the Principal Employer. It was clearly understood from the Minutes of Meeting that the Wipro Ltd being Principal Employer, was responsible  to obtain license under Section 12 of the Contract Labour (Regulation and Abolition) Act. Neither license under Section 12 as stated above was taken by the Wipro Limited nor Minimum Wage was paid to the Data Entry Operators.  

The NRC authority had sanctioned Minimum Wage  (Rs 14,500 to Rs 17,500) per Data Entry Operator per month. However, Wipro paid less than the Minimum Wage.  

CONCLUSION: 

1. The High Court of Assam, Nagaland, Mizoram and Arunachal Pradesh directed Wipro Limited to comply immediately Section 12 of the Contract Labour (Regulation and Abolition) Act and execute duty under the Act as Principle Employer on  Minimum Wage. 

2. The Comptroller and Auditor General of India is also on record on  this massive  anomalies after complain from the employees.  This was also  placed in  State Legislative Assembly for discussion. The CAG clearly identified the flaws and documented that the Data Entry Operators engaged by the SEBI listed entity paid less than the Minimum Wage.

3. The Labour Department issued notice to the Wipro Limited for not complying the requirement of license. As Principle Employer, Wipro Limited was binded to pay  Minimum Wage to the Data Entry Operators. 

4. The HR Practice of Wipro has attracted Human Right violation. This HR Practice broke down the Sustainable Development Goal Number 8. The Goal 8 is on the Labour Laws and Human Rights protection, which focuses on the "Decent Work and Economic Growth". This is needless to mention what is the meaning of "Decent Work" in HR Practice.

  

5. This is only the inner consciousness of the Directors of the Wipro Limited. They have to decide whether they are above law or wish to comply law. They should must regularly conduct Social Audit on the HR Practice. What the auditors report in the audit, that should must be honestly rectified as correction measures, if there is any.  The audit report must be reported on the BRSR Report and the Annual Reports, as per law. There is no any shortcut.