EY Pune probed after employee’s death: Lacked labour welfare permit

• The tragic death of a 26-year-old EY employee has triggered an investigation into the company’s Pune office.
• What was uncovered?
• According to a senior government official who spoke to Reuters, EY Pune has been operating since 2007 without the mandatory state permit regulating work hours! 

EY Pune operating without a permit since 2007

• EY India’s Pune Unit: Operating since 2007, but without a Shop Act license, which is required to regulate work conditions such as employee rights, wages, and safety.
• License Issue: Although EY applied for the license in February 2024, the application was rejected due to a significant delay.
• Regulatory Non-Compliance: Shailendra Pol, Maharashtra’s Additional Labor Commissioner, has criticized EY for not complying with the Shops and Establishments Act.
• Impact: This non-compliance has drawn attention as it violates labor laws designed to protect employees.

Facing legal ramifications

EY’s non-compliance could lead to serious legal issues, including:

• Imprisonment for up to six months.
• Fines up to Rs 5,00,000.
• Or both.

Pol’s team is also requesting detailed reports on:

• Employee work hours.
• Welfare policies.
• Whether Anna faced an unhealthy workload during her time at EY.

Also read: EY called out by grieving mother: Her 26-year-old daughter overworked to death

Anna’s mother’s letter reveals it all

Anna’s mother, Anita Augustine, penned a letter to EY India’s chairman, Rajiv Memani.

Sebastian’s family reported that she died of cardiac arrest, an event that now seems deeply tied to the excessive work conditions during her short four-month tenure.

According to her mother’s letter, Anna was indeed burdened with an excessive workload.

What next for EY?

With around 100,000 employees in India, this investigation could have wide-reaching implications for EY and beyond.

While EY has yet to publicly address the permit issue, they have expressed their commitment to employee well-being.

Also read: EY invests $1Bn to revamp the accounting profession and make it more attractive for young professionals

No response from ICAI on the EY case

While EY Pune took the flak from the CA community and a probe from Pune’s Labor Commissioner, ICAI is yet to address the situation.

Many CAs are expressing frustration that ICAI officials have yet to reprimand the work culture at EY in response to the situation.

Meanwhile, Vice President CA Charanjot Singh Nanda is now focusing on his upcoming election campaign and is requesting votes.

One person posted on LinkedIn,

“There has not been a single response from CA Charanjot Singh Nanda yet in Anna’s case and the CA work culture in Big 4s and EY.

In fact, we had sought his help and guidance by writing a mail to him and President Ranjeet Kumar Agarwal in Anna’s case so that such incidents would not happen again.

However, we haven’t received any response yet from both of them and also from The Institute of Chartered Accountants of India (ICAI).”

Do you think ICAI has the power to tackle this trend of long working hours at Big 4s in India?