EY Pune employee Anna Sebastian's death: Probe finds MNC lacked labour welfare permit

NEW DELHI: As outrage over death of Ernst & Young (EY) 26-year-old employee continues, it was found that the company in Pune did not have labour welfare permit.

Anna Sebastian allegedly died due to a heavy workload. The company has been operating since 2007 without a required state permit regulating work hours, according to a senior government official who spoke to Reuters. The company is facing scrutiny following the death of audit executive Anna Sebastian Perayil, with her mother attributing the tragedy to an "overwhelming" workload in a letter to EY India's chairman. This incident has prompted a federal investigation.

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The need for better protections for employees in high-pressure roles has gained attention, especially following the death of a junior banker at Bank of America in May. Last week, JPMorgan even created a new position to address these concerns. Shailendra Pol, Maharashtra's additional labor commissioner, noted that the EY office in Pune lacked mandatory registration under the state's Shops and Establishments Act, which limits working hours to a maximum of nine per day and 48 per week.

Pol stated that EY applied for registration only in February 2024, and their application was rejected because the company had not registered since opening its office in 2007. EY has been given seven days to respond to this lapse. Non-compliance could lead to imprisonment for up to six months or fines up to Rs 5,00,000, or both.

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EY India did not respond immediately to Reuters’ request for comment but has previously emphasized its commitment to employee well-being, stating it is taking the family's concerns seriously. In her widely circulated letter, Perayil's mother, Anita Augustine, described her daughter's "backbreaking" workload, mentioning that she often worked late into the night and on weekends without respite.

Perayil's family reported that she died of cardiac arrest. Pol's team is also seeking information from EY regarding employee hours, welfare policies, and whether excessive work was required during Perayil’s four-month tenure as an associate. EY reportedly employs around 100,000 people at its member firms in India.