Over 30% companies not complying with legal norms on sexual harassment at work: Survey

Ernst & Young survey finds investigative panel members not trained, rules not displayed, ignorance about penalty for non-compliance

At a time when the top bosses of high-profile organisations such as The Energy and Resources Institute and Tehelka are battling allegations of sexual harassment at the workplace, a study has found that as many as 31 per cent of companies surveyed were not complying with the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act 2013. These included over a quarter – 27 per cent — of large companies and half of small and medium companies.

The survey, “Reining in sexual harassment at the workplace in India”, was conducted by Ernst & Young Fraud Investigation & Dispute Services from January to April this year. Nearly 130 organisations across India, including industries like banking and finance, manufacturing, media and entertainment, IT/ITeS, pharmaceuticals and automobile, participated.

While 69 per cent of the respondents had constituted the internal complaints committee (ICC), mandatory under the law, to investigate cases of sexual harassment in the organisation, 18 per cent had not done so more than a year after the Act came into force. The remaining 13 per cent were in the process of setting up the committees. Non-compliance among Indian companies was higher — 36 per cent had not constituted ICCs or were in the process of doing so. At 25 per cent, multi-national companies (MNCs) fared marginally better.

The law, however, requires the organisations to do more than just set up ICCs. “The ICC members have to be sensitised and trained to conduct an investigation which is of a very serious nature,” says Arpinder Singh, partner and national leader, Fraud Investigation & Dispute Services, Ernst & Young LLP.

It was found that 40 per cent of the companies were yet to train the ICC members. Automobile companies scored particularly low with 60 per cent of them yet to train the members. Advertising and media companies followed at 50 per cent. “ICC is a quasi-judicial body and investigation can often be technical in nature,” says Singh. “Call record details have to be sometimes studied and email trail, chat transcripts and CCTV footage has to be investigated. It is very worrying that despite the law being stringent, several organisations are not bothering to train the investigators entrusted with such a delicate task.”

According to the survey, 35 per cent of the respondents were ignorant of the penal clause for non-compliance with laws relating to how ICCs should be constituted. “The issue was more pronounced among MNCs with almost 38 per cent stating their ignorance. This indicates that they do not comprehend the losses possible through their obliviousness,” the survey stated.

A sizeabale chunk – 44 per cent – also did not display the penal consequences of sexual harassments at conspicuous places.

There is, however, another side to the problem. Sometimes complaints of sexual harassment are found to be malicious and false. Twelve per cent of the respondents stated that malicious complaints increase after appraisals. “And half of the respondents were unclear about the malicious complaints received after the assessment of the performance of employees,” the survey noted.

The law also requires organisations to file an annual report for each calendar year. The survey found that 34 per cent of the respondents were unaware of the need to do so. At 40 per cent, the number was higher among Indian companies.

“We clearly still have a long way to go,” says Singh.

ILL-EQUIPPED COMPANIES