Probe into EY India Office Lacks Labour Welfare Permit
An Ernst & Young (EY) office located in western India has been operating without a state permit regulating work hours since 2007, according to a senior government official who spoke to Reuters. This follows the tragic death of audit executive Anna Sebastian Perayil, a 26-year-old employee whose family attributed her passing to an excessive workload.
The incident has led to increased scrutiny of EY in India, particularly in light of a federal investigation sparked by Perayil’s death. Her mother expressed her grievances in a letter to EY India’s chairman, stating that her daughter faced a “backbreaking” workload.
In a statement released late on Tuesday, EY confirmed that its global member firm, SRBC & Co. LLP, is “providing its full cooperation to the Ministry of Labour in its investigation,” though they declined to comment further on the matter.
The need for more robust protections for employees in high-pressure roles has gained attention, particularly following the death of a junior banker at Bank of America in May. Additionally, JPMorgan recently established a new position aimed at addressing such workplace concerns.
Shailendra Pol, Maharashtra’s additional labour commissioner, reported that EY was operating without the necessary registration mandated by the state’s Shops and Establishments Act. This law stipulates a maximum of nine working hours per day and 48 hours per week for adult employees.
Pol noted that EY applied for registration in February 2024, but that application was rejected because the firm had not applied since its office opened in 2007. He revealed that EY has been given a week to explain this oversight.
Failure to comply with the law, particularly if it leads to serious injury or death, could result in penalties including imprisonment for up to six months or fines up to 500,000 rupees (approximately $5,979).
In her viral letter, Perayil’s mother, Anita Augustine, claimed her daughter experienced an “overwhelming workload,” stating, “She worked late into the night, even on weekends, with no opportunity to catch her breath.” EY has previously emphasized its commitment to the well-being of all employees and is taking the family’s concerns very seriously.
Perayil’s family asserts that she died due to cardiac arrest. In its ongoing investigation, the labour department has requested records from EY regarding employee hours, welfare policies, and whether Perayil was subjected to excessive work during her four-month tenure as an associate at the firm.
EY claims to employ around 100,000 individuals across its member firms in India.