India’s New Sexual Harassment Law for the Workplace

SUNNYVALE, Calif. - Jan. 17, 2014 - PRLog -- A new law for the protection of women against sexual harassment at the workplace recently entered into force in India. The main objective of the new legislation is to provide protection to women against sexual harassment in the workplace, ensure prevention and redressal of sexual harassment complaints, implement the right to gender equality and provide a safe working environment for all employees, reports Nair & Co. which provides global HR services (http://www.nair-co.com/global-hr-services.aspx) for companies setting up foreign operations.

The definition of sexual harassment in the workplace includes any undesirable sexual behavior either direct or indirect including physical contact and advances, demand or request for sexual favors, coloured remarks, showing pornography, or any other unwanted verbal or non-verbal conduct of a sexual nature. The law further defines workplace to include any place an employee may visit in the course of employment, for example, office premises, transportation provided by employer and outside areas such as clients’ offices, taxis, hotels, etc…

Highlights of the law are as follows:

The law applies to female employees:

·         working as domestic workers, daily wagers, temporary or permanent, full-time or part-time, trainees, probationers, contract labour, volunteers, etc.

·         without regard for age

Under the new law, employers are required to:

·         provide a safe work environment.

·         establish an Internal Complaints Committee:

o    consisting of at least 4 members

o    at every office employing at least 10 employees

o    with a senior level woman as the presiding officer

o    made up of at least 50% women

o    including at least two member employees with social work background or legal knowledge

o    and an appointed member from an NGO or other related organization

·         display the penal consequences of acts of sexual harassment and the composition of the Internal Complaints Committee.

·         offer training programs educating employees of the implications of sexual harassment in the workplace.

·         treat sexual harassment as misconduct under the service rules and initiate actions for misconduct.

·         file required reports with the authorities.

The Internal Complaints Committee, responsible for:

·         completing an inquiry related to complaints and disposing them off within 90 days.

·         reporting all complaints to the employer.

·         establishing a settlement between the woman and the respondent only at the woman’s request (monetary compensation cannot be taken as a basis for the settlement).

·         take action against the woman, if the allegation is proved as false compliant.

·         maintaining the women’s anonymity.

The Act authorizes the Internal Complaints Committee to recommend temporary measures such as,

·         transferring the concerned party/parties involved in the case to any other workplace, or

·         granting leave to the aggrieved woman in addition to her regular contractual leave.

Penalties under the new law are outlined:

·         Employers

o    that fail to comply will be fined up to Rs. 50,000

o    with frequent violations, may experience higher penalties and cancellation of licence or registration to carry out business.

·         Employees, found guilty may face

o    1-3 years imprisonment

o    a possible fine

Companies with operations in India are advised to take appropriate actions to fulfil the requirements of the new legislation in order to avoid possible penal consequences. Concerned companies must fulfil various obligations which include but are not limited to getting a well drafted policy in place, constituting an Internal Complaints Committee, publishing various notices at the workplace, providing training, etc.

For more information about doing business overseas (http://www.nair-co.com/expanding-business-overseas.aspx) or to know more about our International Expansion Services (http://www.nair-co.com/) team please contact us.

Subscribe to regular global tax compliance (http://www.nair-co.com/international-tax-compliance-servi...) alerts from Nair & Co.

Get the latest news releases and updates on international tax, HR, Finance, compliance and other legal news at Nair & Co. Industry Alerts (http://www.nair-co.com/global-hr-services.aspx).

About Nair & Co.

Nair & Co., the leader in international business expansion services, provides accounting, HR, legal, tax and compliance services for the set up and management of your international operations. Our model of a single-point-of-contact, supported by internal teams of experienced advisors, helps clients expand business and manage risk so they can focus on their core business and sustain growth with minimal risk, stress and cost. We support nearly 250 clients in over 70 countries. Nair & Co. is headquartered in Bristol, UK, has 450 employees and offices in China, India, Japan, Singapore, and the US. Learn more at http://www.nair-co.com/

Media Contacts

For media enquiries or to learn to more about Nair & Co., please email us at media@nair-co.com or call Yvonne Smith at +1.408.501.8867