Government probes Ernst & Young Pune office after employee’s death linked to 'work stress'

A probe into the Ernst & Young (EY) office in Pune, where the death of a young employee — 26-year-old Anna Sebastian Perayil — sparked discussion over hustle work culture, has revealed that the office has been operating without a state authorization that governs work hours since 2007, a senior government official said.

This came to light on Sep 23 when the company's Yerwada office in Pune was inspected by the Labour Commissioner.

Earlier, in a letter to the chairman of EY India, Anna's mother attributed her death to a "backbreaking" workload, following which the company is facing scrutiny.

During an inspection by the team, Maharashtra's Additional Labor Commissioner, Shailendra Pol said that the EY office in Pune was operating without the required registration mandated by the state's Shops and Establishments Act.

The Maharashtra Shops and Establishments Act mandates the possession of a license under the Shop Act. This Act controls labor conditions, including employee rights, working hours, wages, and safety.

To operate lawfully, companies and enterprises must obtain this license from the Pune Municipal Corporation (PMC).

"Our officials visited the premises and made several observations. The company has been given seven days to respond to those findings," he said.

He further said the report on the circumstances surrounding the July death of the 26-year-old CA will be written and delivered to the state labor commissioner in a week, after which it will be sent to the Center for additional examination.

According to Pol, "The company applied for registration with the labor department only in February 2024, and we rejected it because it had not applied since it started this office." EY has been given seven days to explain the gap.

If a worker is killed or seriously injured in an accident due to non-compliance with the law, there might be penalties of up to ₹5,00,000 ($5,979) in fines or up to six months in jail or both.

EY had previously said that it was "taking the family's correspondence with the utmost seriousness and humility" and that it placed "the highest importance on the well-being of all employees."

In a letter from Perayil's mother, Anita Augustine, the claims about her daughter's "overwhelming workload" went viral on social media. "She worked late into the night, even on weekends, with no opportunity to catch her breath."

Anna's family said that she died of a cardiac arrest.

Pol said his team has also sought details from EY, including the company's logbook for employee hours, welfare policies, and whether Perayil was asked to work excessively during her four months as an associate at the accounting giant.

According to EY, its member firms in India employ roughly one lakh people.

"The government will also communicate with the corporation, and reports from the police and a post-mortem will also be received," Pol added.

The 26-year-old Anna Sebastian Perayil died on July 20 from "work stress," according to her mother, Anita Augustine.

Perayil worked as an audit executive for EY India in the Pune branch from March 18 until July 19. Augustine questioned the work culture of the company in a letter to Rajiv Memani, chairman of EY India.

No one from the corporation came to Anna's funeral, she said in the letter.