A notice has now been issued to the firm, which has been embroiled in a controversy after one of its employees, Anna Sebastian Perayil, died earlier this year due to alleged workplace stress. (File Photo)
The Pune labour commissioner’s inspection of Ernst and Young’s office in the city has revealed that the auditing giant has been operating in the state without the mandatory Shop Act Licence since 2007. A notice has now been issued to the firm, which has been embroiled in a controversy after one of its employees, Anna Sebastian Perayil, died earlier this year due to alleged workplace stress.
Shailendra Pol, Additional Labour Commissioner, Pune, confirmed that his office had inspected Ernst and Young’s office on Monday and that the company has been given seven days to reply to the notice.
“A Shop Act Licence is necessary for every establishment that employs over 10 people and is not a manufacturing unit. It dictates the working conditions and the measures the establishment has to take for the welfare of its employees. It is surprising that an auditing firm did not renew its licence,” an official from the labour commissionerate said.
Ernst and Young had not renewed its Shop Act Licence since 2007, officials said.
When asked about this omission, the company said that SRBC & Co. LLP, a member firm of EY Global, is providing its full cooperation to the Ministry of Labour in its investigation. “We cannot comment further while the investigation is ongoing,” the company said in an email.
The inspection was conducted after Perayil’s mother alleged in a letter to EY India head Rajiv Memani that her daughter had died in July due to “work pressure” at the firm. The company has denied the charges.
The Centre and the National Human Rights Commission have taken suo motu notice of Perayil’s death and ordered investigations into the incident.