Pune office of the global accounting firm Ernst & Young (EY) is under scrutiny as serious allegations have surfaced regarding its legal operations.
The Maharashtra Labor Department has launched an investigation and is preparing to take action against EY for operating without the mandatory license under the Shops and Establishments Act since 2007, which governs the welfare and rights of employees.
This development comes after an inspection revealed the company’s non-compliance with multiple labor regulations.
According to labor department officials, EY's Pune office has been functioning for over 16 years without obtaining the necessary operational license under the Shops and Establishments Act, which is designed to protect employees' health, rights, and financial security.
The department has confirmed that the company will soon receive a show-cause notice, and further action will depend on EY's response.
This investigation was prompted by a tragic incident in July, when a 26-year-old Chartered Accountant, Anna Sebastian Perayil, died while working at EY’s Pune office. Her untimely death raised serious concerns about the high-pressure work environment at the firm.
Ana’s mother, in a letter to EY India Chairman Rajiv Memani, accused the company of creating unbearable work stress, which she claimed led to her daughter’s death. However, EY strongly denied these allegations, maintaining that the company was not responsible for the tragic event.
Following Ana’s death, the central government directed the Maharashtra Labor Department to conduct a thorough inspection of EY’s Pune operations. The inspection uncovered violations, including the failure to obtain a license under the Shops and Establishments Act.
Shailendra Pol, Additional Labor Commissioner, stated that there were multiple breaches of labor laws, including those related to minimum wage standards, maternity benefits, timely payment of wages, and overtime compensation.
Pol remarked, “Our inspection clearly shows that Ernst & Young’s Pune office has been violating the provisions of the Shops and Establishments Act for years. In addition to working without the required permit, the company has breached several key regulations that ensure the welfare of employees.”
In response to these findings, the Maharashtra Labor Department will issue a formal notice to the company, demanding an explanation for the violations. Depending on the company's response, further legal action will be taken.
