In response to growing concerns over the treatment of white-collar workers, authorities in Maharashtra and Karnataka—two states driving India’s economic growth—are drafting stricter workplace regulations and increasing inspections. This follows the death of Anna Sebastian Perayil, a 26-year-old Ernst & Young (EY) executive, whose family blamed her sudden demise on overwork.

India's labor laws, traditionally focused on blue-collar workers, often leave corporate employees vulnerable to harsh working conditions and summary dismissals. Labor authorities in Mumbai, Maharashtra's capital and financial hub, and Bengaluru, Karnataka's IT hub, have begun addressing these gaps. Officials in both states confirmed that steps are being taken to ensure workplace compliance and protect white-collar workers.

In Maharashtra, the state government is considering a proposal to regulate hiring and layoffs across all corporate roles, including managerial positions. Two state officials said the measure could take the form of a new law or guidelines, pending approval by the state cabinet.

Meanwhile, Karnataka has increased workplace inspections in Bengaluru, ensuring companies comply with overtime regulations and maintain proper time logs. “In the wake of overwork complaints, inspections are now more frequent,” a state labor official said.

The International Labour Organization (ILO) emphasized that labor protections should extend to all workers, regardless of job type. “From the perspective of ILO standards, rights should be granted equally to both blue-collar and white-collar workers,” said Elena Gerasimova, a labor law expert at the ILO.

Perayil’s death in July highlighted the issue of grueling workloads in corporate India. Her mother described her daughter’s job at EY as involving “backbreaking” work, long hours, and inadequate managerial support. The federal labor ministry has since opened an investigation into the case, with EY stating it places the "highest importance" on worker well-being and is addressing the family’s concerns "with utmost seriousness and humility."

For many employees in the corporate sector, the lack of legal recourse is a persistent issue. A former EY tax consultant, Amit, said his dismissal complaint to Mumbai’s labor authorities was dismissed on the grounds that he did not qualify as "labor" under Indian laws.

An industry insider acknowledged the need for firms to honor employment contracts and overtime rules but argued that the global economic slowdown is challenging for businesses, particularly in the IT sector. “They have to protect their businesses too,” the source said.

The debate has sparked broader conversations among lawmakers about revising labor laws to ensure corporate workers receive fair treatment. Labor unions, which have long advocated for such reforms, say the recent momentum could lead to meaningful change in India’s workplace regulations.