EY India's Pune Office Lacked Labour Welfare Permit, Probe Reveals After Employee's Death

In the wake of the tragic death of a 26-year-old Ernst & Young (EY) employee, reportedly due to an excessive workload, an investigation has revealed that the company has been operating without a state permit to regulate working hours since 2007, as reported by Reuters.

Anna Sebastian Perayil's mother addressed a letter to EY India's chairman, Rajiv Memani, claiming her daughter's death was a result of the "overwhelming workload" at the Pune office. According to Perayil's family, she suffered a cardiac arrest.

In her letter, Anna Perayil's mother emphasized, "She worked late into the night, even on weekends, with no chance to catch her breath." This statement has ignited discussions on the impact of high-pressure jobs on employees' physical and mental health.

Maharashtra's Additional Labour Commissioner, Shailendra Pol, and his team conducted an inspection of EY's Pune office and confirmed it was operating without the required permit under the state's 'Shops and Establishments Act.' This legislation stipulates a maximum of nine working hours per day and 48 hours per week for adults.

Pol informed Reuters, "The company only applied for registration with the labour department in February 2024, which we rejected since they hadn't applied since 2007 when they opened this office."

EY India has been given seven days to address this compliance issue. Should it be determined that this lapse contributed to an incident resulting in serious injury or death, the company could face fines of up to ₹5 lakh, and the responsible individuals could face imprisonment of up to six months.

EY has previously stated that the well-being of its employees is a top priority and that it is addressing the family's concerns with seriousness and humility.

Shailendra Pol's team will also review EY's logbook for employee hours, welfare policies, and whether Perayil was excessively overworked during her four months at the company.

The National Human Rights Commission (NHRC) has taken suo motu cognizance of the case, asserting that if the reports are accurate, subjecting individuals to excessive work hours constitutes a severe violation of their rights. The NHRC has issued a notice to the union ministry of labour and employment, requesting a detailed report on the situation.