Under the PoSH Act, 2013, the Internal Committee (IC) has the authority not only to conduct inquiries into complaints of sexual harassment but also to recommend corrective actions when a complaint is proven. One of the most significant forms of corrective action is compensation to the aggrieved woman, meant to acknowledge the harm suffered and restore a sense of fairness and dignity.
Compensation isn’t a punitive measure alone. It represents recognition of the trauma, disruption, and emotional strain that survivors endure when workplace boundaries are violated. It’s also a reminder that accountability in a workplace extends beyond compliance; it must repair the damage caused.
Factors influencing compensation
The PoSH Rules, 2013, provide clear guidance on the basis for determining compensation. The IC must consider several factors to arrive at a fair and proportionate amount:
- Mental trauma, pain, suffering, and emotional distress experienced by the aggrieved woman.
- Loss of career opportunities and professional setbacks caused by the incident.
- Medical or psychiatric treatment expenses incurred as a result of the harassment.
- Income and financial status of the respondent, ensuring that the amount is both fair and feasible.
Feasibility of payment, whether the compensation should be paid in a lump sum or in instalments.
These parameters remind us that sexual harassment is not only a moral and legal wrong but one that can cause lasting economic, psychological, and reputational harm. The IC’s recommendation, therefore, becomes both a symbolic and tangible acknowledgement of the damage endured.
Why compensation matters
Monetary compensation can never fully undo emotional damage. But it serves as a form of institutional accountability, signalling that harassment carries consequences and that survivors deserve redress. It also helps bridge the gap between procedural justice and restorative justice.
When handled with empathy and fairness, compensation can reinforce trust in the organisation’s grievance mechanisms. Survivors who see their cases taken seriously, not just through inquiry but through meaningful outcomes, are more likely to regain confidence in their workplace.
Conversely, when compensation is delayed, reduced without reason, or dismissed as unnecessary, it sends the opposite message: that harm can be minimised or overlooked. This not only discourages future reporting but also weakens the culture of safety the law seeks to protect.
The role of the IC and the employer
The IC’s responsibility doesn’t end with recommending compensation; it must also ensure its implementation. Employers are legally obligated to act on the IC’s findings within 60 days. This includes executing the deduction, ensuring payment reaches the complainant, and reporting compliance to the appropriate authorities.
Beyond legal compliance, progressive organisations treat compensation as part of their duty of care. Some companies also offer counselling support, career rehabilitation, or leave extensions to help the survivor recover emotionally and professionally. These measures humanise the process, reminding employees that PoSH compliance is not just about ticking boxes, it’s about rebuilding trust.
Towards a more accountable culture
In practice, the power of compensation lies in what it represents: acknowledgement, accountability, and closure. For too long, workplace harassment was brushed aside as a private matter. Today, the law makes it clear that it is a public issue of ethics, equality, and human dignity.
By ensuring fair compensation and timely enforcement, companies send a message that misconduct will not be tolerated and that every voice, when raised, will be heard and respected. The IC becomes not just a compliance mechanism, but a guardian of workplace integrity — bridging policy with humanity.
Let us help your company ensure that your PoSH compliance is in place. Reach out to us at hello@serein.inc