EY India Office Under Scrutiny for Labor Law Violations After Employee Death

Ernst & Young (EY) is facing a probe in India following the death of a 26-year-old employee, Anna Sebastian Perayil, allegedly due to overwork. The incident has brought to light that the EY office in Pune, western India, has been operating without a crucial state permit regulating work hours since 2007.

Shailendra Pol, Maharashtra's additional labour commissioner, revealed that the EY office lacked mandatory registration under the state's Shops and Establishments Act. This law limits working hours for adults to nine hours daily and 48 hours weekly. Pol stated, "The company applied for registration with the labour department only in February 2024, which we rejected due to the 17-year lapse since the office's establishment."

EY, one of the "Big Four" accounting firms globally, has been given a week to explain this oversight. The potential consequences for non-compliance resulting in a worker's death or serious injury include up to six months imprisonment, a fine of 500,000 rupees ($5,979), or both.

The incident has sparked a federal government investigation and reignited discussions about employee well-being in high-pressure jobs. This comes in the wake of a junior banker's death at Bank of America in May 2024 and JPMorgan's recent creation of a new role to address work-life balance concerns.

Anita Augustine, Perayil's mother, penned a letter to EY India's chairman, which went viral on social media. She alleged her daughter faced an "overwhelming workload," stating, "She worked late into the night, even on weekends, with no opportunity to catch her breath." The family attributes Perayil's death to cardiac arrest.

"She worked late into the night, even on weekends, with no opportunity to catch her breath."

EY India, which employs approximately 100,000 people across its member firms in the country, has responded by saying it places "the highest importance on the well-being of all employees" and is taking the family's correspondence "with the utmost seriousness and humility."

This incident raises questions about EY's workplace culture, despite the company often appearing on "Best Places to Work" lists. It also highlights the challenges faced by large corporations in maintaining ethical practices across their global operations. EY, founded in 1989 through a merger, has a complex history dating back to 1849 and has faced various controversies over the years, including its involvement in high-profile accounting scandals.

As the investigation unfolds, it may prompt a broader examination of labor practices in the professional services industry, particularly in rapidly growing markets like India. The incident also underscores the importance of corporate social responsibility initiatives, such as EY's "EY Ripples" program, which aims to positively impact 1 billion lives by 2030.

The outcome of this probe could have significant implications for EY's operations in India and potentially influence industry-wide practices regarding employee well-being and compliance with local labor laws.