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Posh act 2013: Deconstructing Section 13(3)(i)

What "In Such Manner as May Be Prescribed" Actually Means One of the most litigated phrases within the POSH Act, 2013 is found in Section 13(3)(i), which directs employers to act upon the recommendations of the IC "in accordance with the provisions of the service rules applicable to the respondent." For years, defense counsels have aggressively interpreted this phrase as a statutory mandate to trigger a completely fresh, separate disciplinary inquiry from scratch under standard corporate service codes. The Bombay High Court’s analysis in the Arun A. Iyer judgment has provided a definitive clarification, cutting through this deliberate misinterpretation. The Division Bench clarified that the reference to service rules in Section 13(3)(i) refers strictly to the mechanism and scale of executing the penalty, not to the rebuilding of the inquiry process itself. In other words, the service rules are consulted to determine what constitutes a "major penalty" vers...
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Posh Law - The Role of Conciliation in POSH Investigations

Not every case of sexual harassment at the workplace needs to culminate in a formal inquiry. The POSH Act, 2013 recognizes that in some situations, the aggrieved woman may prefer a less adversarial resolution. This is where conciliation plays a role offering an opportunity to resolve the complaint amicably, provided certain safeguards are respected. For the Internal Committee (IC), conciliation is a delicate process that requires sensitivity, neutrality, and strict adherence to law.

1. When Conciliation Can Be Considered

  • Conciliation is an option available only at the request of the complainant.
  • The IC cannot suggest or impose conciliation on its own.
  • The request must be made before the start of the formal inquiry process.

This ensures that the complainant’s autonomy and comfort remain at the center of decision-making.

2. Prohibited Basis of Conciliation

The law expressly forbids monetary settlement as the foundation of conciliation. This is a critical safeguard against misuse and exploitation. Instead, conciliation can be based on:

  • An apology or written undertaking from the respondent.
  • Mutual agreement on behavior changes.
  • Undertakings to avoid contact, maintain professional boundaries, or ensure a safe work environment.
  • Other non-monetary resolutions acceptable to the complainant.

3. The IC’s Role in Conciliation

The Internal Committee must ensure that conciliation is conducted with fairness and transparency. Its responsibilities include:

  • Facilitating the discussion while maintaining neutrality.
  • Recording the terms of settlement in writing, ensuring clarity and enforceability.
  • Sharing a copy of the settlement with both parties and the employer.
  • Ensuring closure of the case once both sides confirm compliance.

Importantly, the IC must document the process in its records, since conciliation is considered a valid closure under the Act.

4. Benefits and Risks of Conciliation

Benefits:

  • Provides a quicker, less confrontational resolution.
  • Reduces emotional distress for both parties.
  • Preserves workplace relationships when both parties are willing.

Risks:

  • May be perceived as downplaying the seriousness of harassment if not handled carefully.
  • Could leave the complainant feeling pressured if IC neutrality is not maintained.
  • If terms are vague or unenforceable, disputes may resurface later.

Thus, conciliation must always be voluntary, well-documented, and respectful of the complainant’s dignity.

5. Why Step 4 Matters

Conciliation represents a unique balancing act between justice and resolution. Its importance lies in:

  • Respecting choice: The complainant drives the decision, not the IC or employer.
  • Preventing escalation: It allows workplace issues to be resolved constructively.
  • Upholding compliance: When properly documented, it provides a lawful closure to the case.
  • Building trust: Demonstrates that the organization offers multiple pathways for redressal.

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