Compliance of Sexual Harassment of Women at Workplace Act by firms made mandatory

Speed Post News Network

New Delhi : Disclosure of compliance of Sexual Harassment of Women at Workplace Act in the annual reports of private companies has now been made mandatory.  Ministry of Corporate Affairs has amended the Companies ( Accounts) Rules, 2014, to ensure it.

In order to ensure safe workplaces for Women in the private sector, the Ministry of Women and Child Development had requested Minister for Corporate Affairs to mandate the disclosure regarding implementation of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act in the Directors’ Report of every company.

In its notification dated July 31, 2018, the Ministry of Corporate Affairs has amended the Companies (Accounts) Rules, 2014, issued under Section-134 of the Companies Act, by inserting clause (X) as follows: “ A statement that the Company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.”

The inclusion of the compliance under the Sexual Harassment of Women at Workplace Act in the non-financial disclosures will ensure that the issue gets into the focus into Board of Directors of the companies.

Thanking the Minister for Corporate Affairs, WCD Minister Maneka Sanjay Gandhi stated, “ This is a major step towards making the workplace safe for the women in the private sector.” She also stated that she will be requesting SEBI to suitably incorporate this disclosure in the Corporate Governance reports of the listed Companies, according to a PIB release.

The Ministry of Women and Child Development has been making continuous efforts to mainstream the implementation of the Sexual Harassment of Women at Workplace Act, 2013.