The Ernst & Young (EY) office located in Yerwada, Pune, has come under intense scrutiny following the tragic death of 26-year-old audit executive Anna Sebastian Perayil. Reports indicate that the office has operated for nearly 17 years without the mandatory Shop Act license, raising serious concerns about compliance with labor laws and the welfare of its employees.
Under the Maharashtra Shops and Establishments Act, businesses are required to obtain a Shop Act license to operate legally. This license is vital as it governs critical aspects related to employee rights, including working hours, wages, and safety measures. Despite these requirements, sources have revealed that EY India has not secured this license since the opening of its Pune office in 2007. Although the company did submit an online application for the license in February 2024, the absence of this permit for almost two decades has raised alarm among labor authorities and the general public.
In a recent inspection conducted by the Labour Commissionerate, triggered by Anna’s untimely death, multiple compliance failures were uncovered. Additional Labour Commissioner Shailendra Pol confirmed that significant violations of the Shop Act regulations were identified during the inspection. He emphasised that any business exceeding the maximum working hours requires explicit permission from a managerial authority. Reports suggest that EY’s office did not have adequate measures in place to monitor and regulate working hours effectively.
Key Compliance Failures
During the inspection, officials noted several critical shortcomings:
- Absence of a Central Logout System: Commissioner Pol highlighted the need for a central logout system for employees’ laptops, which would automatically log out workers after eight hours of work. This system could help prevent overwork and mitigate potential health issues associated with long working hours. The lack of such measures in EY’s office has drawn widespread criticism, especially in light of Anna’s tragic passing.
- Excessive Working Hours: Anna reportedly faced an overwhelming workload, often extending her hours late into the night and over weekends. The absence of proper regulations regarding working hours potentially contributed to the stress and health issues she experienced.
Anna Sebastian Perayil joined EY India’s Pune office as an audit executive on March 18, 2024. Tragically, her life was cut short when she passed away on July 20, just two days after her last working day. According to reports, Anna succumbed to a heart attack, a condition her family attributes to the strenuous demands of her job.
In a poignant letter addressed to EY India Chairman Rajiv Memani, Anna’s mother, Anita Augustine, expressed her profound concerns over the “backbreaking” workload that her daughter endured. The letter, which has since gone viral on social media, detailed how Anna frequently worked late nights and weekends, leading to a debilitating sense of stress. Augustine voiced her distress over the lack of support from the company during her daughter’s difficult tenure, as well as the absence of company representatives at Anna’s funeral. This disregard deepened the family’s grief during an already painful time.
In her letter, Anita Augustine described Anna as a dedicated and ambitious individual who worked tirelessly to build her career. She recounted instances where Anna came home exhausted, often sharing stories of her demanding work schedule and the immense pressure she faced. “My daughter was driven by her passion for her work, but the toll it took on her health was devastating,” Augustine lamented. She emphasised the need for companies to foster healthier work environments that prioritise employee well-being.
The shocking circumstances surrounding Anna’s death have prompted a federal investigation into the working conditions at EY’s Pune office. The Ministry of Labour has begun gathering information from various state officials, police, and medical examiners to understand the situation surrounding Anna’s passing. Union Labour and Employment Minister Mansukh Mandaviya announced that the government would take decisive action based on the forthcoming report, which is expected to be released within the next week.
In response to the serious allegations, EY India issued a statement asserting that SRBC & Co. LLP, the member firm at the center of the investigation, is fully cooperating with the Ministry of Labour. The firm reiterated its commitment to employee well-being, emphasising that it places “the highest importance on the well-being of all employees.” However, EY has refrained from making further comments until the investigation concludes.
The tragic death of Anna Sebastian Perayil has intensified discussions about the urgent need for enhanced protections for employees, particularly in high-stress roles like finance and auditing. Similar incidents in the finance sector have underscored the pressing necessity for corporations to implement better safeguards against employee burnout and mental health deterioration. Notably, the recent death of a junior banker at Bank of America has further spurred conversations about corporate responsibility in prioritising employee health.
In the wake of such tragic events, several firms have begun to reevaluate their employee welfare strategies. Notably, companies like JPMorgan have initiated the creation of new roles dedicated to addressing employee mental health and well-being. This shift signals a growing acknowledgment within the corporate landscape of the critical importance of fostering a healthy work environment.
As the investigation progresses, the implications for EY and other firms operating without the proper licenses could be substantial. Additional Labour Commissioner Pol stated that if non-compliance with labor laws is determined to have contributed to an incident resulting in serious bodily injury or death, responsible individuals could face imprisonment of up to six months or a fine of up to 500,000 rupees (approximately $5,979).
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