Non-Registration Revealed in Inspection The Maharashtra Labour Department recently identified major compliance lapses at S.R. Batliboi & Co., the Pune-based office of EY, one of the Big Four statutory auditing firms. Shailendra Pol, Additional Labour Commissioner, reported that an inspection conducted on September 23, 2024, found the office had been operating since 2007 without obtaining a license under the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017. This law mandates that all commercial establishments in Maharashtra secure a Shop and Establishment License within 30 days of commencement. Non-compliance can result in substantial penalties, sparking surprise and concern among industry members, given EY’s reputation as a leader in regulatory advisory services.
Employee’s Tragic Death Raises Concerns The compliance issue gained additional public attention after the mother of a former employee, Anna Sebastian Perayil, contacted EY India’s Chairperson, Rajiv Memani, following her daughter’s untimely passing in July. Perayil, a 26-year-old chartered accountant who had been with the firm for only four months, allegedly faced high stress due to long working hours, which her mother linked to her daughter’s sudden death. This tragic incident brought to light concerns around employee welfare and work-life balance, prompting scrutiny on how labor regulations are observed within high-pressure environments like EY.
Central Government Orders Probe into EY’s Compliance The issue escalated during a press conference in Pune, where Central Minister of Labour & Employment, Mansukh Mandaviya, responded to a question on whether his ministry would investigate the matter. Following this, the Ministry of Labour ordered an inquiry, led by the Maharashtra Labour Commissioner, into the compliance irregularities uncovered. The Labour Department is expected to pursue further actions to address these violations and ensure adherence to labor regulations in the Pune office.
