EY India Under Scrutiny as Probe Reveals Pune Office Lacked Labor Welfare Permit

EY India Under Scrutiny as Probe Reveals Pune Office Lacked Labor Welfare Permit

Reports have emerged indicating that Ernst & Young (EY) may have been flouting labor laws. A probe into the matter was launched following the sudden death of one of its employees, Anna Sebastian Perayil, aged 26. EY has not had a permit to regulate work hours in Maharashtra state since at least 2007. Perayil passed away after suffering cardiac arrest, believed by her family to have been brought on by stress from being overworked.

An investigation is ongoing. Perayil worked as an audit executive at EY’s office in Pune. In a letter to the firm’s India chief, Rajiv Memani, her mother wrote that the young woman had frequently put in long shifts with no days off—a situation that had become normal for many people employed there. She added this fact has sparked nationwide discussion about whether such high-pressure workplaces could be damaging their employees’ health.

During an inspection led by Shailendra Pol, Additional Labour Commissioner of Maharashtra, it was found that EY’s Pune office has been operating without a necessary permit under the state’s Shops and Establishments Act since 2007. This legislation limits adult employees to nine hours’ work daily or 48 hours weekly.

Pol said EY India only sought registration with the labor department in February 2024—an application that was turned down because the firm had flouted the rules for so long. The company now has a week to respond and explain; should it be found guilty, there are various penalties available, including a fine up to ₹5 lakh (approximately $6,900), and if someone has been seriously injured or killed as a result of an infringement, then imprisonment may stretch to six months.

EY India responded by reiterating its dedication to the wellbeing of its employees. They said they are taking the family’s concerns seriously and with care. Now the labor department will look further into EY’s employee logbooks and welfare policies. They want to find out if Anna Perayil worked too hard during her short time at the company.

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The National Human Rights Commission (NHRC) has also decided to get involved in this case on its own accord. The NHRC said that if it does turn out employees have been made to work too much, this would be a serious violation of their rights. So it has sent a notice to the Union Ministry of Labour and Employment asking for more information.