Labour Department set to act against EY India over absence of Shop Act licence

The Department of Labour in Maharashtra is set to take action against the Ernst & Young unit in Pune, saying the company failed to offer a valid explanation for not having a valid Shop Act licence.
The Labour Department issued a notice to the company after the death of its employee, Anna Sebastian Perayil. Her mother, Anita Sebastian, alleged in a letter that the work pressure at EY was a contributing factor to her daughter’s death.
Labour Department officials inspected EY’s office in Pune’s Yerwada last week and discovered several issues, including the company’s failure to obtain a licence under the Shop Act despite operating since 2007. Despite the notice, EY failed to respond within the required seven-day period.
A Shop Act licence is a legal requirement under the Maharashtra Shops and Establishments Act, which regulates work conditions, including employee rights, working hours, wages, and safety. The licence must be obtained from the Pune Municipal Corporation (PMC) to operate legally.
EY claimed to have applied for an online licence in February this year. They were given seven days to respond to the Labour Department notification.
On Tuesday, the administration of EY submitted a documentation covering 13 of the required concerns raised by the Labour Department. However, the company failed to provide an explanation regarding the absence of a valid Shop Act licence.
According to Additional Labour Commissioner Shailendra Pol, the department is now set to take direct action against the company.
While the company requested an additional three to four days to respond, the Additional Commissioner stated that no further extensions would be granted, and immediate action would be pursued by the Labour Commissionerate.
Meanwhile, the National Human Rights Commission has granted EY a two-day extension to submit their reply regarding work hours issue.
When approached for a comment on the controversy, EY declined to issue an official statement.