Chapter 23 of 23 · Setting Up of Business, Industrial and Labour Laws

Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

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Chapter weightageCh. 22
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December 2025Q. 5(a)5 marksSyllabus 2022
Show the facts common to all parts of Q. 5

Vibhut Small Finance Ltd. is a registered NBFC under regulations issued by RBI. The Company was formed in 2010. As on date, market cap of the Company is ₹ 15,434.56 Crore with total customer base of 34,549 in 173 branches all over in India. The totat employee’s strength is 3,983 with 76 : 24 male and female ratio. Being one of the largest private sector NBFC, the Company offers various benefits to employees as well as welfare services.

There are various Internal Committees to investigate the matters related complaints under POSH Act. During the period from 1st April 2024 to 31st March 2025, total complaints received was 305, out of which 226 was disposed of within 3 months. It was observed that the Internal Committee prima-facia looked into the matter and based on the gravity of the matter, the employees were terminated immediately, where found guilty, as per recommendation of the Internal Committee.

No departmental proceedings were conducted.

In one case, the Branch Manager denied leave to a woman who had adopted a 2-month- old child. The contention of the Management was that as there is no birth, hence maternity benefits can’t be given. In certain cases, it was also observed that if the child dies during the maternity leave, prior to the delivery period, leave for the rest of the period were being cancelled as per internal policy.

Mrs. Lata, who was the cashier in a rural area branch, had met with an accident due to slippage.

In absence of First-Aid Box, there was huge loss of blood and she couldn’t survive. The view of the Management was that as there are only 22 employees in the Branch, which is less than 150, hence there is no need to maintain a First-Aid Box.

Through outsourcing agency, the Company hires security personnel. The number of guards depends upon the size of the Branch. It was noticed that in a few branches, the drinking water facility was not available. The view of the Management was that such facilities are to be provided by the contractor, and not by the Company.

The matters in Vibhut Small Finance Ltd., therefore highlights the importance of strict adherence to labour laws in protecting the rights of workers, maintaining industrial harmony, and ensuring that businesses remain compliant with statutory obligations. It also shows that expansion and profit-making, while important for business growth, cannot come at the cost of ignoring legal responsibilities owed to employees.

In view of the above-mentioned facts, answer the following by mentioning the legal provisions of applicable laws :

(a)Can Vibhut Small Finance Ltd. terminate employee on basis of finding of Internal Committee for POSH, without conducting any departmental inquiry ?

December 2025Q. 6A(i)5 marksSyllabus 2022OR, alternative to Q. 6

(i)Prepare a note on Local Complaint Committees constituted under Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

June 2024Q. 6(a)5 marksSyllabus 2022

(a)X was facing a departmental enquiry for allegedly indulging in sexual harassment of his senior woman officer. He contended that as the alleged misconduct took place not at the workplace but in the guesthouse of company where the woman officer was residing, he could not be accused of sexual harassment at workplace. In the light of a decided case law, examine the validity of contention of A.

June 2026Q. 6A(iii)5 marksSyllabus 2022OR, alternative to Q. 6

(iii)What interim measures can the Internal Committee recommend to the employer during the pendency of an inquiry under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, when such measures are requested in writing by the aggrieved woman ?

December 2024Q. 6A(i)5 marksSyllabus 2022OR, alternative to Q. 6

(i)Discuss the implications of Section 14 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, regarding punishment for false or malicious complaints.

December 2023Q. 5(d)5 marksSyllabus 2022
Show the facts common to all parts of Q. 5

Reena has joined as the Management Trainee in the Company Secretary department of PP Ltd. in the month of September, 2022. The Company is a listed company. Apart from passing CS Professional examination, Reena has also completed her MBA (Finance) from a reputed Management Institute. She is passionate to learn the compliances under the Companies Act, 2013, the SEBI Act, 1992 and other laws applicable to the company. On the request of Reena, the Company Secretary of the company advises Reena to meet Sanjeev, who is the senior partner of AB Solicitors, the legal consultants of the company, for understanding the compliances under the various laws.

On 10th July 2023, Reena visits the office of Sanjeev. During the discussion, Sanjeev highlights that in the CS department of PP Ltd., the male CS trainees are getting higher stipend as compared to the stipend of female CS trainees. Sanjeev explains her about the reforms proposed by Code on Social Security, 2020, which amends and consolidates the laws relating to social security with the goal to extend social security to all employees and workers either in the organised or unorganised or any other sectors or for matters connected therewith or incidental thereto. He also mentions that in order to ensure security for all workers, the Central Government has subsumed nine Labour Laws into the Social Security Code to secure the rights of workers for insurance, pension, gratuity, maternity benefit etc. Further, the Government can fund the contribution of workers from disadvantaged section. He also informs that being a cotton textile unit, there are some restrictions for PP Ltd. on engagement of women and children near cotton openers, but the company is not following the prescribed rules.

After the meeting, Sanjeev advises Reena to come again to his office on the next day so that he may explain her about the pending legal cases. She returns back to the office of PP Ltd. and prepares a detailed report on equal pay for equal work and laws which are proposed to be merged in Social Security Code and restriction on employment of women and children. She sends the said report to the Managing Director of PP Ltd. through email with a copy to the senior partner of the legal consultants of the company.

As per the advice of Sanjeev, Reena visits the office of AB Solicitors, legal consultants, again on 11th July 2023. On reaching the office of legal consultants, she is informed that Sanjeev is on leave for the day due to urgent personal work. Mukesh, who is the junior partner in the legal consultancy firm, tells her that he is preparing replies in respect of various legal cases of the company and she should also learn how to prepare such replies. Reena being excited to learn new things enters into the chamber of Mukesh. Mukesh tells Reena that he may provide very useful case studies to her for her learning and starts making physical contact and advances with her. Being aggrieved by the behaviour of Mukesh, Reena returns to the office of PP Ltd. and makes a complaint before the internal complaints committee of the company for sexual harassment. Reena wants that her identity, address and contents of her complaint should not be published, communicated or made known to the public. In view of the above, answer the following :

(d)Briefly state the provisions regarding prohibition of publication or making known contents of complaint and inquiry proceedings under Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal)

Act, 2013.

June 2025Q. 6(a)5 marksSyllabus 2022

(a)Ramesh Kumar Gupta, a Director of ‘Flavors of Delhi Private Ltd.,’ a prominent restaurant business located in Connaught Place, Delhi, employs 20 male staff members. He has approached you, a practicing Company Secretary, for your opinion on the following :

(i)Whether Flavors of Delhi Private Ltd. is required to establish an Internal Complaints Committee (ICC) under the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013.

(ii)What should be the composition of the ICC, given that there are no female employees in the organization ?

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