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Toxic Corporate Culture: Understanding Its Impacts And Legal Solutions

Work-life balance in today’s world requires attention, as the issues arising from excessive work demands in corporate environments are concerning. Therefore, this
topic should be discussed and introduced in schools and colleges to help address it effectively.

Introduction
In India, the corporate sector is expanding rapidly, as the country is one of the fastest-growing economies in the world today. This sector has become increasingly
popular among the youth due to its promises of job stability, better work environments, improved lifestyles, and attractive salaries.

However, one must question whether corporate jobs are truly as glamorous as they are often portrayed. Are employees in this sector facing overwhelming stress from tight deadlines, unrealistic expectations, and a lack of balance between their work and personal lives?

Statistics around workplace stress in India throws up alarming facts. According to a CII-MedBuddy report, nearly 62% of Indian employees experience work-related stress and burnout. A Linkedin survey from 2022 found that 55% of Indian professionals felt overworked with many citing long hours, work life imbalance and insufficient mental health support as key issues of workplace deaths and health breakdowns tied to stress.
Only 24% employees feel satisfied with the current workplace health options.[1]

This article highlights the toxic aspects of corporate work culture, where the boundaries between work and personal life often overlap and remain unequal. It further explores how this imbalance negatively impacts the mental and physical well-being of employees
in this sector.

History And Background
The corporate work culture got a push with industrialization in the early 20th century. With the rise of industrialization, India paved the way for development in various sectors to expand its economy. Specifically, the corporate sector was at the rise and became very popular amongst the youth. In the 1990s, the economic liberation led MNCs to India, which helped freshmen to get appointed into MNC with high salaries.

Due to the rapid growth of the economy and rising demands of corporate work, the hiring process escalated and a good amount of employees got hired. But the demand of work load never decreased, which resulted in overburden for the employees working for corporate offices and corporate work culture took a different shape. Today when we look at the number of corporate offices, it's uncountable.

Corporate life looks great from an outside perspective, which offers their employees with a handsome salary and other benefits as well which seem very glamorous and looking at these benefits, the freshers put their all to get into the corporate world. So, after joining this "prestigious" company, he/she gets to know about the real challenges one has to face in this sector which shatters them and they feel helpless. At this point, most of the employees suffer from physical and mental health due to overburden and also there's a lack of respect for junior employees in some of the offices.

Challenges Of Corporate Life:

  1. Stressful deadlines: Impractical deadlines are being put on the employees, causing stress and anxiety. If the employees fail to meet the deadlines, their efficiency is questioned. A lot of times, deadlines are vaguely set by the managers; sometimes only on the requirements of the clients. Ideally, deadlines for each task must be decided after careful consideration of all the variables involved.
     
  2. Long working hours: To finish the assigned tasks and meet the unrealistic deadlines, employees often work more than the fixed working hours, for which they are rarely compensated. Companies often offer flexible working hours to give the impression that they are providing benefits to their employees. Although flexible working hours appear to offer autonomy to the employees over their schedules, in practice, they often lead to extended work hours and a lack of work-life balance. Without proper tracking of actual work hours, companies may exploit the flexibility, demanding more from employees without accountability. Even with fixed work hours, employees often exceed the official 8-9 hours to meet deadlines, leaving little time for personal activities. After accounting for sleep, office work, and daily chores, employees might not have even a few hours left for self-care, skill development, or relaxation. Thus, while flexible hours offer initial benefits, they can ultimately hinder employee well-being and personal growth.
     
  3. Micromanagement: Team leads and managers often keep the employees on their toes by constantly asking for updates every few hours (and sometimes even more frequently). They also keep imposing their methods and suggestions over the employees assuming this will have a better outcome. This approach often frustrates employees, as it limits their autonomy, decision-making, and creativity. Over time, it degrades the performance of the employees as they lose interest in the work.
     
  4. Work-life imbalance: Due to long working hours, employees find it hard to keep a balance between work life and their personal life. Since people don't have any time left after work, it becomes difficult for them to spend time with their family and friends.
     
  5. Lack of empathy: Employers and managers often fail to address the personal challenges and needs of their employees. This creates a cold and unresponsive environment where employees feel undervalued and unsupported. This leads to stress, dissatisfaction, and reduced morale, thereby harming both individual well-being and overall team performance.
     
  6. Insufficient compensation: Employees often invest significant effort into their work, yet the returns they receive - both in terms of monetary and non-monetary benefits - are minimal. The pay disparity is much more evident in tier-1 cities, where the cost of living is high. People in these cities face substantial recurring expenses, such as housing, transportation, and daily necessities, making it difficult for a modest salary to meet their basic needs. As a result, many workers feel financially strained.

Towards A Balanced Work Culture
Creating a supportive and positive work environment is essential for enhancing employee well-being, productivity, and overall job satisfaction.

To achieve this, employers must:
  • Prioritise employee mental health through workshops and counselling.
  • Establish fixed working hours, offering flexibility solely to employees to prevent exploitation.
  • Provide regular breaks to enhance employee productivity.
  • Acknowledge and appreciate employees’ efforts to boost morale.
  • Foster a positive and empathetic workplace environment with open communication.
  • Collect and act on employee feedback to improve the work experience.

Impact of toxic work culture on employees:
The corporate work culture is rapidly evolving in today’s fast-paced world, with organisations expecting increased growth, innovation, and higher efficiency as a result.
However, employees often bear the brunt of this evolution, paying the price through their personal lives and well-being.

Corporate environments have gained significant popularity globally, attracting many, especially the youth, who seek prestigious work settings, competitive salaries, a balanced lifestyle, and social recognition. Yet, reality often proves to be starkly different. Within months of entering the corporate world, employees quickly realise the challenges that come with it. The salary, in many cases, fails to reflect the demands placed on them, as they face escalating workloads, unrealistic expectations, and a lack of respect from senior management. Only those within the corporate environment truly understand the toll it takes, leaving many to question whether it is worth the sacrifice. As one might put it, "It is a work culture where the weak are drained, and the ambitious are often rejected."

Majority of employees are grappling with the toxicity of corporate work life, with some even paying the ultimate price.

Case 1: Anna Sebastian | Ernst & Young (EY)
The tragic death of Anna Sebastian Perayil has shaken the entire nation, putting the corporate culture under intense scrutiny.

Anna Sebastian Perayil, a 26-year-old from Kochi, Kerala, was a Chartered Accountant by profession. She lived with her parents and aspired to move to Pune for a new job opportunity at Ernst and Young (EY). According to her mother, Anita Augustine, Anna had been a bright and dedicated student since childhood. She was eager to gain experience and exposure in a new city, with aspirations of working for organisations like
the United Nations (UN) and the World Health Organization (WHO) after completing a year at EY. "After I get this certificate, I will get a good job anywhere. I want to get experience and exposure here,” she once told her parents." There were no weekly offs, no comp offs. She did not get paid for the extra work she did. In fact, even on the weekend when she fell ill, she was working. She had told her manager that her laptop was not working, and that she was going to the office to get it resolved with the IT team.

The organisation now says she worked till July 19. No, she worked on July 20 as well, the night she fell ill,” Ms. Anita said.[2]

As per reports Anna died in July, four months after joining the firm. Her parents have alleged that the "overwhelming work pressure" at her new job took a toll on her health and led to her death.[3]

Although the company denies that work pressure was the cause of her death, reports reveal that she worked 55 hours a week without taking weekends off and received no compensation for the excessive workload. Despite this, there is still no final judgement in the case, leaving her parents feeling helpless. They are devastated by the loss of Anna, knowing that no compensation from the company can ever justify her death or ease their pain.

Case 2: Tarun Saxena | Bajaj Finance
This is yet another tragic case that went unnoticed, similar to a previous incident, where a 42 Year-old man named Tarun Saxena took his own life due to immense work pressure from his superiors and the looming threat of salary deductions.

Tarun Saxena served as an Area Manager at Bajaj Finance, responsible for collecting EMIs on loans disbursed by the company in his assigned region. However, he faced difficulties in recovering payments for several reasons. This led to intense pressure from
his superiors to meet targets, with warnings that failure to do so would result in salary cuts. Tarun, fearing job loss on top of the stress, found himself in a dire situation.

A devoted family man, Tarun lived with his parents, wife, and two children. This incident is heartbreaking not only because of the suffering Tarun endured but also due to the immense grief it has caused his family. His parents, wife, and children are left struggling with this profound loss. Tarun left behind a five-page letter addressed to his wife, where he expressed his thoughts and emotions before the tragic event. He stated that"I have not slept for 45 days. I have hardly eaten.

I am under a lot of stress. Senior managers are pressuring me to meet targets at any cost or quit. I'am very tense about the future. I have lost my ability to think. I am going." You all take care of Megha, Yatharth and Pihu. Mummy, Papa, I have never asked for anything, but am doing so now. Please get the second floor built so that my family can stay comfortably," he said.[4]

In his letter, Tarun also named his seniors and urged his wife to file a police complaint against them, stating that "they are responsible for my decision." [5]

Acting on his request, she filed a complaint, and an FIR was registered against the individuals mentioned in the letter.
Two of Tarun’s seniors were subsequently accused under "Bharatiya Nyaya Sanhita sections 108 (abetment to suicide), 352 (intentional insult), and 351(2) (criminal intimidation)."[6]

The company expressed its condolences, releasing a statement to convey its grief over the incident. "We are deeply saddened by the tragic loss of Tarun Saxena and express our heartfelt condolences and full support to his family in this difficult time. Tarun was a loving father, son and a great friend who will be deeply missed by all who knew him. He was with our company for over 7 years and his loss is felt immensely by both us and his family," the company said in its statement.[7]

However, such statements and actions cannot undo the tragedy or bring Tarun Saxena back to life. While some cases like Tarun's come to light, many remain buried in silence, leaving countless employees to suffer in the shadows. Even after incidents like these, there is often no substantial action against those responsible, nor any significant changes in corporate work culture.

Some employees dare to speak up; others choose to leave their jobs. Tragically, some end their lives, while many remain silent, enduring their struggles alone.

Indian Laws for the Welfare of Employees:
The Indian legal system has always prioritised the safety and protection of its citizens. Additionally, India is known for being the largest democracy in the world. The country permits activities and frameworks that can be regulated to ensure the welfare and security of its people. In line with this, the Indian legal system has established several provisions under labour laws. Labour law is a distinct branch of law comprising various
acts that provide detailed guidelines on matters such as safety, protection, resolution of disputes between employees and employers, equal pay, maternity benefits, etc, for employees.

The Indian constitution has also given several provisions in matters of equality and equal opportunities in employment.
Like:
  • Article 14 of the Indian Constitution states - Equality before law: The State shall not deny to any person equality before the law or the equal protection of the laws within the territory of India. [8]
  • Article 15 states that, The State shall not discriminate against any citizen on grounds only of religion, race, caste, sex, place of birth or any of them. [8]
  • Article 16 - It is the most important article in respect to public employment and protection of rights of employees. It states that there should be Equality of opportunity in matters of public employment. And there shall be equality of opportunity for all citizens in matters relating to employment or appointment to any office under the State. [8]
  • Article 19 - Protection of certain rights regarding freedom of speech, etc. All citizens have the right:
    • (c) to form associations or unions or co-operative societies; [8]
  • Article 21 is again the most important article in every aspect of law, morality, and life. It states about the Protection of life and personal liberty. [8]

    Article 21 is important in respect of employees' personal life and liberty, as this provision allows the right to freedom of life and liberty of every individual of the country, and so every employee is also free to enjoy this right, whenever there is any kind of pressure on employees in respect of work, salaries, or holidays.

    As we discussed the cases of Anna and Tarun, they were clearly deprived of this right, when they tolerated pressure and long working hours along with restlessness and no compensation for double work!

  • Article 23 & 24 clearly prohibit human trafficking, forced labour, and child labour in factories etc.
  • Article 42 states the Provision for just and humane conditions of work and maternity relief. [8]

    The state shall make such provisions that every company, industry, factory shall adapt to good working conditions and should provide a good working environment for the employees and shall also provide maternity relief and benefits for female employees.

There are several other laws made in the form of Acts and Codes for resolving the disputes between employers & employees, for the protection of labour and employees, for safety, benefits, compensation, and relief of employees.

Some of the Acts which have provisions for the welfare of employees are listed below:

  1. Industrial Disputes Act, 1947: This act was made to investigate and settle several disputes arising in any industry between employers & employees. It provides with a special machinery of conciliation officers, work committees, court of inquiry, Labour courts, Industrial Tribunals and national Tribunals, defining their powers, functions and duties and also the procedure to be followed by them [9] and resolving the issues through arbitration.
  2. The Minimum Wages Act, 1948: It requires companies to pay the minimum wage set by the government alongside limiting working weeks to 40 hours (9 hours a day including an hour of break). Overtime is strongly discouraged with the premium on overtime being 100% of the total wage. [10]
  3. The Maternity Benefit (Amendment) Act, 2017: This act provides 26 weeks of leave to the female employee of every company as maternity relief along with paid leaves, medical bonus, and nursing breaks.
  4. The Payment of Bonus Act, 1965: The Payment of Bonus Act of 1965 imposes a contractual obligation on employers to pay bonuses to employees in proportion to the resources available for the establishment's smooth functioning. The Act's purpose was to give workers a say in the company's profits and to enable them to earn slightly more than the minimum wage based on their performance. [11]
  5. The Equal Remuneration Act, 1976: This act provides equal wages for equal work to male and female employees. And there shall be no discrimination against the female employees in matters of wages, transfers, and promotion.

There are several other Acts which provide information about welfare, safety, protection, benefits, and relief to employees. The Acts are:

  1. The Payment of Gratuity Act, 1972
  2. Factories Act, 1948
  3. Payment Of Wages Act, 1936
  4. The Employees' State Insurance Act, 1948
  5. The Trade Unions Act, 1926
  6. The Employees' Provident Funds and Miscellaneous Provisions Act, 1952

The Indian law system has provided detailed information great provisions for employees and their welfare, so that there shall be no discrimination or injustice faced by employees. These laws should strictly be applied and followed by every company,industry, factory and each and every employer should take care of their employees' welfare.

Conclusion:
The corporate work culture in India, while offering attractive salaries, career growth, and stability, often hides a grim reality of overwhelming stress, unrealistic expectations, and an unhealthy work-life balance. As highlighted by distressing cases like those of Anna Sebastian and Tarun Saxena, the toll of such a toxic environment can lead to devastating consequences, including loss of life.

The evolution of this culture, from its roots in industrialization to its current form, has seen the glorification of overwork, with employees bearing the brunt of increasing workloads and insufficient support systems. While Indian labour laws and constitutional provisions advocate for employee welfare, enforcement and awareness remain critical challenges.

The path towards a balanced corporate culture lies in prioritising mental health, fostering empathetic leadership, and ensuring fair work practices. Companies must take active steps to value their employees’ well-being as a foundation for long-term growth and sustainability. Without these changes, the cost of ignoring employee welfare may continue to outweigh the perceived benefits of corporate life.

References
  • Toxic Work Culture Kills EY India Employee - News9 Live
  • Death of EY Employee Anna Sebastian - The Hindu
  • Death of Indian employee sparks debate on 'toxic work culture' - BBC
  • No Sleep For 45 Days | Employee suicides under work pressure - NDTV
  • No Sleep For 45 Days | Employee suicides under work pressure - NDTV
  • Stress, Sleeplessness for 45 Days - TOI
  • Stress, Sleeplessness for 45 Days - TOI
  • The Constitution of India
  • Industrial Disputes Act
  • Indian Labour Law
  • Payment of Bonus Act, 1965
Written By:
  • Nirjara Singh Rao, Student of 4th year B.A L.L.B at University College of Law, Mohanlal Sukhadiya University, Udaipur
  • Sheetal Vairagi, Student of 4th year B.A L.L.B at University College of Law, Mohanlal Sukhadiya University, Udaipur
  • Rakshita Shaktawat, Student of 4th year B.A L.L.B at University College of Law, Mohanlal Sukhadiya University, Udaipur
  • Rekha Meghwal, Student of 4th year B.A L.L.B at University College of Law, Mohanlal Sukhadiya University, Udaipur

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