What Happened?
Recently, a 26-year-old Chartered Accountant at Ernst & Young (EY) India, Anna Sebastian Perayil, passed away due to a cardiac arrest. Her mother alleged that Anna was overworked while working at the EY office in Pune and subjected to a toxic work culture which affected her physical and mental health leading to her death.
This incident has raised concerns about the lack of labour law compliance in India's corporate sector, particularly in the context of workplace safety and employee welfare.
Latest Update on the Labour Welfare Permit
The investigation into Anna's death has uncovered a significant legal violation, highlighting the company's disregard for its employees' well-being. Initiated by the Labour Department of India, the inquiry, led by Maharashtra’s Additional Labour Commissioner Shailendra Pol, involved a thorough examination of the circumstances surrounding Anna’s death, including interviews with her colleagues and supervisors.
Following an inspection of EY India's Pune office and a review of company records, it was revealed that EY India has been operating without a required labour welfare permit.
The Labour Commissioner disclosed that EY India applied for registration in February 2024, but it was rejected as the company should have registered back in 2007, when its office first opened. EY India now has seven days to explain its non-compliance.
If found guilty of violating the law resulting in a serious accident, the company faces a ** ₹5 lakh fine**, and its responsible officers could face up to six months of imprisonment.
Authorities will also examine the records of EY India, including:
- Average working hours of the employees
- Company policies on employee welfare, and
- Whether the victim was overworked during her four-month term in office.
Additionally, the National Human Rights Commission (NHRC) is investigating the case, viewing employee overwork as a severe human rights violation. The NHRC has requested a detailed report on the matter from the Labour Ministry.
The Importance of Labour Welfare Permits
A labour welfare permit is a permit under the Maharashtra Shops and Establishments Act that helps manage work conditions, covering employee rights, work hours, pay, and safety. Employers with 10 or more workers in a factory, shop, or business must have this permit.
The permit makes sure that the employers provide safe and healthy working conditions for their staff and follow rules about employee welfare. It helps regulate working conditions and prevents workers from being mistreated or exploited.
Obtaining Labour Welfare Permits in India: A Guide
In India, labour welfare permits are a mandatory requirement for employers to ensure the welfare and safety of their employees. Here are the legal requirements for obtaining labour welfare permits in India:
- Eligibility: Any employer who employs 10 or more workers in a factory, shop, or establishment is eligible to apply for a labour welfare permit.
- Application Process: Employers must submit an application to the Labour Department in the state where their factory, shop, or establishment is located.
- Required Documents: Employers must provide the following documents along with their application:
- Proof of registration of the factory, shop, or establishment
- Proof of employment of 10 or more workers
- Details of the amenities provided to employees, such as canteens, creches, and recreational facilities
- Details of the safety measures in place to prevent accidents and ensure the health and safety of workers
- Fees: Employers must pay a fee, which varies depending on the state and the number of workers employed.
- Renewal: Labour welfare permits must be renewed annually, and employers must provide updated information and documents to the Labour Department.
Non-compliance with labour welfare permit requirements in Pune can lead to serious penalties, based on both Maharashtra state laws and central provisions, including:
- Fine: Employers can be fined up to ₹50,000 if they do not obtain a labour welfare permit. This is under the Maharashtra Labour Welfare Fund Act, 1953.
- Imprisonment: Employers could face up to six months in prison for not following the permit requirements, as per the Maharashtra Labour Welfare Fund Act.
- Cancellation of Registration: The registration of the factory, shop, or establishment may be cancelled if a labour welfare permit is not obtained. This falls under the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017.
- Closure of Establishment: Non-compliance may lead to the closure of the business under the Maharashtra Shops and Establishments Act, 2017.
- Compensation to Workers: If the non-compliance causes harm to workers, the employer may have to compensate them under the Industrial Disputes Act, 1947.
- Reputation Damage: Non-compliance can also harm the employer's reputation, which can affect business relationships and trust.
Protecting the Rights of Workers: Labour Laws in India
In India, a comprehensive framework of legislation is in place to safeguard the welfare and safety of employees. These laws work in the interest of workers, ensuring that they are treated fairly and with dignity. Here are some key laws that protect the rights of workers:
Factories Act, 1948:
- Section 2(m): Ensures that factories with 10 or more workers are held accountable for providing a safe working environment.
- Section 7: Requires employers to prioritise the health and safety of workers, providing a safe working environment and necessary precautions to prevent accidents.
- Section 11: Mandates employers to provide fair wages and social security benefits to their employees, ensuring that they are compensated fairly for their work.
- Section 21: Provides a safety net for workers in case of injury or death in the course of employment, ensuring that they receive compensation and support.
The Maharashtra Shops and Establishments Act, 1953:
- Section 2(4): Defines the scope of shops and establishments, ensuring that all workplaces are held to the same standards of safety and fairness.
- Section 7: Regulates the working conditions of employees in shops and establishments, ensuring that they are treated with dignity and respect.
- Section 10: Protects the rights of employees to fair wages, hours of work, and leave entitlements, ensuring that they are not exploited or overworked.
- Section 14: Mandates employers to provide amenities such as canteens, creches, and recreational facilities to their employees, promoting a healthy work-life balance.
Employees' Compensation Act, 1923:
- Section 3: Holds employers liable for providing compensation to employees in case of injury or death in the course of employment, ensuring that workers are protected in case of accidents.
- Section 4: Mandates employers to provide medical treatment to employees in case of injury, ensuring that workers receive the care they need to recover.
- Section 5: Provides a safety net for the dependents of employees in case of death, ensuring that they are supported and cared for.
Maharashtra Labour Welfare Fund Act:
- Section 2(e): Describes the role of labour welfare officers, who are in charge of taking care of employees' welfare and making sure their rights are respected.
- Section 3: Requires employers to offer facilities like canteens, childcare (creches), and recreational areas for their employees, helping maintain a good work-life balance.
- Section 4: Guarantees that employees receive financial support and compensation if they are injured or die while working, providing a safety net for them and their families.
How Can Corporate Workers Find Remedies?
If you're a corporate worker in India, you can find remedies under the following sections of the legislations:
Factories Act, 1947:
- Section 21: File a complaint with the Labour Department or the National Human Rights Commission for payment of compensation in case of injury or death in the course of employment.
- Section 7: Report the issue to your HR department or supervisor for ensuring a safe working environment and fair wages.
The Maharashtra Shops and Establishments Act, 1953:
- Section 10: File a complaint with the Labour Department or the National Human Rights Commission for payment of wages, hours of work, and leave entitlements.
- Section 14: Report the issue to your HR department or supervisor for provision of amenities such as canteens, creches, and recreational facilities.
Employees' Compensation Act, 1923:
- Section 3: File a complaint with the Labour Department or the National Human Rights Commission for payment of compensation in case of injury or death in the course of employment.
- Section 4: Report the issue to your HR department or supervisor for provision of medical treatment in case of injury.
Labour Welfare Act, 1986:
- Section 3: File a complaint with the Labour Department or the National Human Rights Commission for provision of amenities such as canteens, creches, and recreational facilities.
- Section 4: Report the issue to your HR department or supervisor for payment of compensation in case of injury or death in the course of employment.
Conclusion
The investigation into the death of an EY India employee is a wake-up call for businesses in India, showing the urgent need for more responsibility and stricter enforcement of labour laws. Unfortunately, stress and poor working conditions are not just problems at EY India. Recently, a female employee at HDFC Bank in Lucknow also died, reportedly due to work pressure. This highlights the need for companies to address workplace stress and focus on employee well-being.
The tragic deaths of Anna Sebastian Perayil and Sadaf Fatima have started important discussions among leaders and advocates about creating healthier workplaces and providing better support for workers in India. It is time for companies to take responsibility for their employees' well-being, and for the government to make sure labour laws are properly enforced.
If you are a corporate worker in India, it is important to know your rights and speak up if you are being overworked or exploited. Your health and safety are the top priority, and you deserve to be treated with respect and dignity at work. Do not hesitate to report any incidents of overworking or unfair treatment to your HR department or supervisor. If their response is not satisfactory, you can file a complaint with the Labour Department or the National Human Rights Commission. You can also reach out to employee unions or groups that help protect workers' rights.
References
- Times of India. "Understanding the Labour Welfare Fund: How It Works, Employer Responsibilities, and Other Information." Times of India, 27 Sept. 2023
- The Leaflet. "Who Killed EY Employee Anna Sebastian Perayil?" The Leaflet, 25 Sept. 2024
- [Onmanorama. "EY Employee Death: Pune Office Operated Without License Under Shops Act, Finds Labour Department." Onmanorama, 25 Sept. 2024[ (https://www.onmanorama.com/news/india/2024/09/25/ey-employee-death-pune-office-operated-without-license-shops-act-finds-labour-department.html/)
- [Free Press Journal. "She Did Not Receive Any Compensation or Week Off, Says Anna's Mother." Free Press Journal, 26 Sept. 2024] (https://www.freepressjournal.in/business/she-did-not-receive-any-compensation-or-week-off-says-annas-mother/)
- [Times of India. "EY Employee’s Death Sparks Row on Heavy Workload: Which Indian States/UTs Have the Longest Workdays?" Times of India, 27 Sept. 2024] (https://timesofindia.indiatimes.com/education/news/ey-employees-death-sparks-row-on-heavy-workload-which-indian-states/uts-have-the-longest-workdays/articleshow/113663118.cms)
Written by Seersha Chaudhuri
Driven legal professional with a BA LLB and a knack for writing and media reporting. Previously, I’ve crafted legal documents and managed court proceedings at Terkiana PC, focusing on immigration law. I’m also brushing up on my Spanish with Duolingo—learning a new language has never been this fun! Eager to blend my expertise in legal research with my passion for global policy and creative writing. Apart from being a professional, I am a full time lover of fish, dystopian fiction and Brooklyn 99.
advertisement
Further Reading
advertisement
