Probe finds EY India office, where late Anna Sebastian worked, lacks labour welfare permit

26-year-old Anna Sebastian Perayil tragically lost her life just four months into her role as an associate at the accounting firm EY, a death attributed to alleged overwhelming workload, according to a letter from her mother addressed to EY India Chairman Rajiv Memani. This incident has ignited a significant conversation about toxic work cultures, not only at EY but across the industry. Now, a Reuters investigation has made a shocking revelation: EY has been operated without a labor welfare permit since 2007.

EY has been operating without a state permit regulating work hours since 2007, a senior government official revealed to Reuters.

This revelation comes on the heels of the tragic incident that has prompted a federal investigation into the firm's practices.

On September 19, Labour Minister Shobha Karandlaje had posted on X: "A thorough investigation into the allegations of an unsafe and exploitative work environment is underway. We are committed to ensuring justice & @LabourMinistry has officially taken up the complaint."

Deeply saddened by the tragic loss of Anna Sebastian Perayil. A thorough investigation into the allegations of an unsafe and exploitative work environment is underway. We are committed to ensuring justice & @LabourMinistry has officially taken up the complaint.@mansukhmandviya https://t.co/1apsOm594d

¡ª Shobha Karandlaje (@ShobhaBJP) September 19, 2024

In a statement released late Tuesday, EY confirmed that its global member firm, SRBC & Co. LLP, is fully cooperating with the Ministry of Labour's inquiry.

Shailendra Pol, Maharashtra's additional labour commissioner, highlighted that the EY office in Pune was operating without mandatory registration under the state's Shops and Establishments Act.

This law limits working hours for adults to a maximum of nine hours per day and 48 hours per week.

If found non-compliant, the company could face severe penalties, including up to six months in prison or a fine of up to 500,000 rupees ($5,979), or both, in the event of a serious workplace accident resulting in injury or death.

Reuters reported Pol as stating, "The company applied for a registration with the labour department only in February 2024 and we rejected it because it had not applied since 2007 when it started this office."

He also noted that EY has been given seven days to address this oversight.

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