Maharashtra’s Labour Department to take action against EY India over absence of Shop Act License
Maharashtra’s Labour Department to take action against EY India over absence of Shop Act License
The Department of Labour in Maharashtra is poised to take action against the Ernst & Young branch in Pune, citing the company’s inability to provide a valid reason for not possessing a proper Shop Act license.
This notice follows the tragic death of an employee, Anna Sebastian. Her mother, Anita Sebastian, claimed in a letter that the work pressure at EY may have contributed to her daughter’s passing. Last week, Labour Department officials conducted an inspection of EY’s office in Yerwada, Pune, and found multiple issues, including the absence of a Shop Act license, even though the company has been operating since 2007. Additionally, EY did not respond to the notice within the stipulated seven-day timeframe.
A Shop Act license is a legal requirement under the Maharashtra Shops and Establishments Act, which governs work conditions such as employee rights, working hours, wages, and safety. This license must be obtained from the Pune Municipal Corporation (PMC) to operate legally.
Ernst & Young (EY) stated that they applied for an online license in February of this year. They were given a week to respond to the Labour Department’s notification.
On Tuesday, EY’s administration submitted documentation addressing 13 of the issues raised by the Labour Department. However, they did not provide an explanation for the lack of a valid Shop Act license.
According to Additional Labour Commissioner Shailendra Pol, the department is now preparing to take direct action against the company. Although EY requested an additional three to four days to respond, the Additional Commissioner indicated that no further extensions would be granted, and immediate action would be taken by the Labour Commissionerate.
In the meantime, the National Human Rights Commission has granted EY a two-day extension to reply regarding the issue of work hours. When asked for a comment on the situation, EY declined to provide an official statement.
