A partner at accountancy firm EY has been fined thousands of pounds after he admitted directing sexual comments towards a female trainee on a company skiing trip.
Industry regulator the Institute of Chartered Accountants in England and Wales (ICAEW) found that Neil Hutt acted obscenely towards a trainee accountant during a trip in January 2019.
The tribunal was told that the woman felt “shocked and disappointed” after Hutt told her at “I’m going to f*** you” while they were having lunch with other employees.
A further comment of a sexual nature was made later that day while the group were having drinks outside. The woman was discussing an incident where a snowboarder had “bashed” into her from behind, when Hutt interrupted and allegedly said, “that’s funny because I’m going to be bashing you from behind this afternoon”.
EY conducted an internal investigation. The woman said the process had been uncomfortable and embarrassing for her as she had to recount what was said to senior members of the firm. She said rumours around the office had left her feeling isolated and she found it difficult coming into work.
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During the internal investigation, Hutt disputed the words used but accepted that he had taken the joke too far and was embarrassed by what had happened.
He was given a final written warning following the incident and the firm imposed a financial penalty of £75,000 in the form of a salary deduction.
He was required to abide by all reasonable requests in respect of working with the woman; to attend diversity and inclusion training; and to agree to be an advocate for the firm’s cultural improvement, including talking to peers about his conduct and what he had learned.
The ICAEW’s disciplinary panel noted that Hutt had showed remorse and had taken remedial steps following the incident. However, it noted that his misconduct was aggravated by the difference in age and seniority between him and the employee and found the behaviour had “amounted to an abuse of his position and power”.
“The tribunal considered that the conduct set out in the complaint was both obscene and aggressive. Egregious behaviour of this nature has no place in the profession,” the ICAEW said.
It stopped short of deciding that Hutt should be struck off, noting that there was no risk of him repeating the behaviour. It imposed a £7,000 fine and ordered him to pay £4,895 in legal costs.
The actions taken against Hutt were published in the ICAEW’s report on disciplinary orders and regulatory decisions earlier this month.
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A spokesperson for EY said: “As the ICAEW notes this was a serious incident which we investigated thoroughly and resulted in EY imposing sanctions. EY takes these matters very seriously and will always take disciplinary action against anyone found to be in breach of our values and global code of conduct.”
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