Compensation under the POSH Act: Section 15

Where the committee finds sexual harassment proved, it can recommend that a sum be paid to the aggrieved woman or her legal heirs. Section 15 lists the five factors the committee must consider in fixing that sum: three measure her loss and two look at the respondent's capacity to pay. Section 13 then provides how the money is recovered. This note covers section 15, its machinery and its link with compensation ordered by a criminal court.

1. The Five Factors

Section 15

Figure 1: Section 15

Opening words. For determining the sums to be paid to the aggrieved woman under s.13(3)(ii), the committee shall have regard to the listed factors.
(a) Mental trauma. The mental trauma, pain, suffering and emotional distress caused to the aggrieved woman.
(b) Career loss. The loss in career opportunity due to the incident of sexual harassment.
(c) Medical expenses. Medical expenses incurred by the victim for physical or psychiatric treatment.
(d) Respondent's means. The income and financial status of the respondent.
(e) Mode of payment. The feasibility of such payment in lump sum or in instalments.

2. Reading the Factors

Victim's loss. Factors (a) to (c) measure what the woman has suffered: emotional harm, damage to her career and treatment costs.
Respondent's capacity. Factors (d) and (e) ensure that the sum can actually be paid, and allow it to be spread over instalments.
Mandatory consideration. 'Shall have regard to' requires the committee to consider every factor, so the report should show how the sum was reached.
No fixed scale. The Act prescribes no minimum or maximum; the sum is left to the committee on these factors.

3. How the Sum Is Recovered

Sections 13(3)(ii) and 15

Figure 2: Sections 13(3)(ii) and 15

The committee's recommendation under s.13(3)(ii) is for deduction of the sum from the respondent's salary or wages, notwithstanding anything in his service rules, to be paid to the aggrieved woman or her legal heirs. If the employer cannot deduct because the respondent is absent from duty or has left service, the committee may direct him to pay directly. If he still does not pay, the committee may forward the order to the District Officer for recovery as an arrear of land revenue.

4. Compensation by a Criminal Court

Two routes to compensation

Figure 3: Two routes to compensation

Section 11(2) adds a second route. Where the respondent is convicted of the offence, the court may order him to pay the aggrieved woman such sums as it considers appropriate, having regard to s.15. The s.15 factors therefore guide both the committee and the criminal court.

⚠ Exam trap

Section 15 lists five factors: mental trauma, pain, suffering and emotional distress; loss of career opportunity; medical expenses for physical or psychiatric treatment; the respondent's income and financial status; and whether payment is feasible in a lump sum or instalments. The sum is recommended under s.13(3)(ii), deducted from salary, paid directly if the respondent has left or is absent, and recovered as land revenue if unpaid. A criminal court on conviction may also award compensation having regard to s.15. Conciliation, by contrast, can never rest on a monetary settlement.

5. Frequently Asked Questions

Is there a maximum limit on compensation under the POSH Act?

No. The Act fixes no minimum or maximum. The committee decides the sum having regard to the five factors in s.15, including the respondent's income and financial status.

Who receives the compensation if the aggrieved woman has died?

Section 13(3)(ii) provides for payment to the aggrieved woman or her legal heirs.

6. Related Topics

Topic 10: Conciliation, Section 10. Why money cannot settle a complaint.
Topic 14: Inquiry Report and Action, Section 13. The recommendation that carries the sum.
Topic 23: POSH and Criminal Law. Compensation on conviction.