Creating a safe work environment is not just good practice; it is the law. For organizations with over 10 employees, setting up an internal committee (“IC”) under the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013 (the “PoSH Act”) is mandatory. The IC is mandated to address any complaints of sexual harassment that it receives. The recent OLA case highlights the importance of understanding and complying with this law.
The OLA Case Background
A woman passenger traveling in an OLA cab faced harassment by an OLA driver. OLA argued they were not responsible as the drivers are independent contractors, and not ‘employees’ of OLA. OLA claimed they are merely aggregators of drivers and thus not responsible for the drivers' actions. This defence sparked significant debate regarding the responsibilities of technology platforms that connect service providers and consumers.
Important Definitions Under the PoSH Act
Employee: Anyone hired, directly or indirectly, for any work, regardless of the terms of employment.
Employer: Anyone responsible for the management, supervision, and control of the workplace.
The PoSH Act defines 'employer' and 'employee' broadly to ensure that the obligations on employers apply widely. This broad definition is designed to prevent organizations from evading their responsibilities regarding workplace safety, which effectively mandates that a safe environment is provided for all individuals interacting with the organization. These definitions of ‘employee’ and ‘employer’ mean that even non-traditional work relationships fall under the PoSH Act's purview.
The Court’s Decision
The court ruled that the relationship between OLA and its drivers, despite being labelled as independent contractors, involves significant control by OLA, thus classifying them as employees for the purposes of the PoSH Act. Accordingly, the court ordered OLA's IC to investigate the complaint and conclude the inquiry within 90 days. Additionally, OLA was directed to compensate the victim with INR 5,00,000/- in recognition of the breach and violation of her fundamental rights on account of inaction on the part of IC and Ola and INR 50,000/- for litigation expenses.
The court highlighted that:
the PoSH Act's intent is broad, covering various forms of work relationships.
the relationship between OLA and its drivers, despite being termed as independent contractors, involves significant control by OLA, making them responsible under the PoSH Act.
It is important to recognize that the terms 'employer' and 'employee' cover various work relationships. A strong commitment to workplace safety can enhance an organization's reputation, attract talent, and ultimately contribute to long-term success.
Additionally, organizations should consider implementing regular training programs to educate employees about their rights under the PoSH Act and to ensure that the IC is well-equipped to handle complaints effectively. This proactive approach can help create a positive workplace culture where employees feel valued and safe. Taking these steps not only helps avoid legal issues but also fosters a respectful and safe work environment.
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