Anna Sebastian death: EY lacked permit that regulates work hours, failed to comply with labor laws since 2007
The death of Anna Sebastian Perayil, a 26-year-old staff member at Ernst & Young (EY)'s Pune office has put the global audit giant into the spotlight. Her passing, reportedly due to a "backbreaking" workload, has raised concerns not only about employee well-being but also the firm's compliance with crucial labor laws.
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FollowThe death of Anna Sebastian Perayil, a 26-year-old staff member at Ernst & Young (EY)'s Pune office has put the global audit giant into the spotlight. Her passing, reportedly due to a "backbreaking" workload, has raised concerns not only about employee well-being but also the firm's compliance with crucial labor laws.
Shockingly, a senior government official revealed that the EY office in Pune, western India, has been operating since 2007 without a mandatory state permit that regulates work hours. This permit, crucial under the state's Shops and Establishments Act, caps adult work hours at nine hours per day and 48 hours per week.
Shailendra Pol, Maharashtra’s additional labor commissioner, disclosed to Reuters that EY had only applied for the necessary registration in February 2024, 17 years after it first began operations in Pune. “The company applied for a registration with the labor department only in February 2024, and we rejected it because it had not applied since 2007 when it started this office,” Pol stated, adding that the firm has been given a seven-day window to explain its oversight.
Perayil’s death has sparked a federal investigation into both the circumstances surrounding her death and EY’s operational compliance. Her mother, Anita Augustine, penned a heartfelt and powerful letter to EY India's chairman, Rajiv Memani, blaming her daughter’s death on an "overwhelming workload." The letter, which quickly gained traction across social media, has amplified concerns about the mental and physical toll of high-pressure jobs in India’s corporate world.
"She worked late into the night, even on weekends, with no opportunity to catch her breath," wrote Augustine, describing the immense pressure her daughter faced during her short tenure at EY. Perayil, who had been employed for just four months, tragically passed away from cardiac arrest—a loss that has ignited discussions about corporate responsibility and employee well-being.
The issue of employee protection in high-stress environments is not new. Perayil’s case follows a growing trend of concerns regarding the mental and physical strain placed on employees in demanding corporate roles.
Pol’s team is now thoroughly investigating EY’s Pune office, seeking details such as employee work hour logs and welfare policies. They are also determining whether Perayil was asked to work excessive hours, pushing her beyond the legal limits. Under India’s labor laws, non-compliance that leads to a worker’s injury or death can result in imprisonment of up to six months or a fine of Rs 5,00,000 ($5,979), or both.
EY, which employs around 100,000 people in its member firms across India, has yet to formally respond to the latest revelations. Previously, the company issued a statement expressing that it places "the highest importance on the well-being of all employees" and is taking the family's concerns "with the utmost seriousness and humility."
This incident has cast a spotlight not only on EY’s handling of workloads but also on broader questions of corporate accountability in India’s demanding professional sectors. With the investigation ongoing, the pressure is mounting on EY to explain its operational discrepancies while also addressing the growing outcry over its treatment of employees.
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