EY India Office in Pune Operated Without Labour Welfare Permit Since 2007, Sources Reveal

Pune: Ernst & Young (EY) India is under scrutiny after it was revealed that the company’s Pune office, where an employee recently died allegedly due to overwork, has been operating without a mandatory Shop Act licence since its establishment in 2007. This licence, required under the Maharashtra Shops and Establishments Act, regulates working conditions, employee rights, hours, wages, and safety standards.

According to sources, EY’s Yerwada office, which has been operational for over a decade, only applied for the permit online in February of this year. The company is now facing criticism following the tragic death of 26-year-old audit executive Anna Sebastian Perayil, who had joined the firm in March 2024 and passed away from a heart attack in July.

After Perayil’s death, the Labour Commissionerate conducted an inspection of EY’s office on Monday, uncovering violations related to the Shop Act, as per a report in India Today. The Labour Department is now investigating allegations of worker exploitation, particularly concerning excessive working hours. Under state regulations, companies must obtain permission for employees to work more than eight hours a day. Additionally, officials suggest that a central logout system be implemented to automatically log employees out of their laptops after eight hours, preventing overwork.

Perayil’s mother has publicly accused EY of overworking her daughter, alleging that long hours and intense workloads contributed to her untimely death. In a letter addressed to EY India Chairman Rajiv Memani, she claimed that the company’s work environment negatively impacted her daughter’s health. However, EY has denied these allegations.

The Labour Department’s ongoing probe could lead to further legal action if the company is found to be in violation of state regulations regarding employee welfare and working conditions.

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