EY employee's death: Pune office operated without license under Shops Act, finds labour dept

Pune: The Maharashtra Labour Department on Wednesday found that the Pune office of Ernst &Young (EY), which became the centre of controversy after the death of a 26-year-old CA professional, was functioning since 2007 without a license under the Shops Act, which stipulates employees' welfare among other conditions.

This is a violation of norms. A notice will be issued to the firm, and based on its response, further action will be initiated, said an official with the labour department. The Shops and Establishments Act regulates all types of business operations, including the well-being of employees. It protects the employees' rights while also ensuring their health and financial security.

A Maharashtra labour department official inspected the EY office here on Monday on the directions of the central government over the death of chartered accountant (CA) Anna Sebastian Perayil. The 26-year-old woman allegedly died due to work stress in July, four months into joining the firm in Pune.

Following her death, Sebastian's mother wrote to EY India chairman Rajiv Memani alleging that the workload and extended working hours took a toll on her daughter. The firm, however, denied the allegations.

Additional labour commissioner Shailendra Pol on Wednesday said an inspection at the EY's office here was carried out under eight to nine legal provisions pertaining to the Shops and Establishments Act, minimum wages, maternity benefits, wage payment, and overtime wages.

"During the inspection, it came to light that the EY Pune office had not obtained the license under the Shops & Establishments Act since its inception in 2007," he said.

Pol said that not obtaining the Shops Act license is a clear-cut breach and violation (of norms). "A show cause notice will be issued by our shop inspector, and we will wait for their reply, and accordingly, further action will be decided," the official said.

Union Minister for Labour Mansukh Mandaviya recently said the death of Anna was being investigated.
(With PTI inputs)