The recent death of Ernst & Young (EY) employee in Pune, Anna Sebastian Perayil, has sparked widespread concern about the overwhelming workload faced by professionals in India. Perayil, a 26-year-old audit executive, allegedly died due to stress due to the backlog of work, a statement his mother gave in a letter to the chairman of EY India. His death has drawn attention not only to EY’s practices, but also to the broader labor issue in India, which affects millions across multiple industries.
The EY Pune office was found to be operating without mandatory registration under the Maharashtra Shops and Establishments Act, according to the state’s additional labor commissioner, Shailendra Pol. This law regulates working hours and employee welfare. The office has been operating since 2007 without proper permits. This negligence led to a government investigation into the circumstances surrounding Perayil’s death and the practices at EY’s Pune office.
Allowed working hours: List of countries
Indian labor laws prescribe certain limits on working hours at the state level. The Shops and Establishments Act (for Maharashtra) and the Factories Act provide guidance on daily and weekly working hours limits, as well as overtime provisions. However, the enforcement of these laws and the actual workload faced by employees varies across countries.
Here are the details of working hours and overtime limits in major states of India:
These restrictions reflect efforts to balance productivity with worker protection. Under the Minimum Wages Act, 1948, the government can set a standard working day, usually 8 hours. Employees are entitled to a rest day every seven days, but certain sectors with urgent or emergency work may have more flexible arrangements.
Hard working culture in India
The problem of long working hours has been around for a long time in India. According to the International Labor Organization (ILO), India is one of the most overworked countries in the world, with an average employee working 46.7 hours per week. More than half of the workforce, 51%, work more than 49 hours per week. This incident has sparked a new discussion about workplace pressures, especially in the context of Indian labor laws and regulations.
Across industries such as healthcare, IT, journalism, and emergency services, Indian employees often work beyond their contracted hours. Overtime and working on days off are common, with society’s expectation that work should come first. This excessive work culture has a detrimental effect on the mental and physical health of employees.
In July 2024, the Economic Survey provided by the Ministry of Finance increased the conversation about increasing working hours. The report emphasized the need to increase the ‘monetizable time’ of Indian workers and suggested easing restrictions on overtime so that employees could earn more. While the Factories Act limits employees to 48 hours per week and a maximum of 10.5 hours per day, proposals to amend the law have been made.
India is not the only one struggling with long working hours. Other South Asian countries, such as Bhutan, Bangladesh, and Pakistan, also see a significant share of the workforce working more than 49 hours per week. Bhutan tops the global list, with 61% of the workforce working overtime, indicating the prevalence of overwork in the region.
Proposals to amend labor laws
A recent attempt to amend the local, the main law governing working hours in India, has sparked controversy. Last year, the governments of Tamil Nadu and Karnataka proposed amendments to extend work shifts to 12 hours. While Tamil Nadu withdrew the proposal following protests, the Congress government in Karnataka floated a bill to increase working hours for IT sector employees to 14 hours a day. This proposal was met with significant opposition, as the Shops and Establishments Act closed daily working hours to 9 hours and weekly hours to 48 hours.
An ongoing debate raises the question of balancing employee productivity and well-being. While there are economic arguments for increasing working hours, they must be weighed against the mental and physical burdens placed on workers.
What lies ahead?
The conversation about working hours in India is far from over. The government’s decision to end the ban on overtime, coupled with the tragic incident at EY, brought the issue into focus. As the investigation into EY continues, it is a reminder of the potential labor costs. This case has not only raised questions about corporate liability, but has also fueled a debate on Indian labor laws, particularly on the regulatory aspect of working hours.
