EY's Pune office operating sans license under Shops Act

The Pune office of Ernst & Young (EY), in news after the death of a woman CA, was functioning since 2007 without a license under the Shops Act, which stipulates employees' welfare among other conditions, an official said on Wednesday.

This is a violation of norms.

A notice will be issued to the firm and based on its response, further action will be initiated, the official from the Maharashtra labour department said.

The Shops and Establishments Act regulates all type of business operations, including the well-being of employees and 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, payment of wages 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.

Not obtaining the Shops Act license is a clear-cut breach and violation (of norms), Pol said.

"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 Sebastian was being investigated.