EY Pune Faces Compliance Violations, Labour Authorities Initiated Prosecution, Penalties Expected In Lakhs

Reported by Tikam Shekhawat

Pune, 8th October 2024: In the ongoing investigation related to the tragic death of Anna Sebastian, an employee at EY’s Pune office, Maharashtra Labour authorities have found significant non-compliance with critical labour laws and hence prosecution procedure has been initiated. The inspection, which was initiated following allegations of excessive workload and unsafe work conditions, has revealed that EY failed to present crucial records within the prescribed time frame.

According to sources from Punekar News, EY was expected to submit compliances related documentation and Labour authorities have found non-compliance under following act:
• The Equal Remuneration Act of 1976
• The Payment of Wages Act, 1936
• The Minimum Wages Act of 1948
• The Maternity Benefit Act, 1961
• Housing Rent Allowance (HRA) compliance
• The Maharashtra Shops & Establishment Act, 1948
•
These are key regulations that ensure fair wages, employee benefits, and workplace safety. The company’s failure to comply with these regulations may result in substantial fines, reportedly amounting to several lakhs.
The non-compliance under the Maternity Benefit Act is especially concerning, with potential penalties including imprisonment of up to three months or fines up to ₹500 for failing to present necessary documents or obstructing investigations. The case is expected to be heard at the Yerwada Court in Pune in coming time.

This development comes as a major blow to EY, which has been facing public scrutiny after the tragic death of Anna Sebastian, allegedly due to work-related stress. Labour authorities, both at the state and central levels, have been investigating EY’s compliance with employee welfare policies, and this new revelation is likely to intensify the case.