SHWW, 2013 – The Most Ignored Compliance
Companies have a tendency to comply with those regulations where the consequences of non-compliance are heavy and enforcement more likely. This why the companies tend to ignore compliance where they find that there is very less enforcement.
On such Compliance which is most commonly ignored is: Sexual Harassment of Women at Workplace Act, 2013 (SHWW Act).
The Consequence of non-conformance to the compliance under SHWW Act can attract fine of up-to Rs. 50,000 for the first instance. Any subsequent non-compliance under this Act attract fine up to Rs. 1 Lakh. There is also a provision to cancellation of license or registration for carrying out the business.
Most of the companies have not complied with even a single compliance under this Act. So far the labour department has not taken any action against the non-compliance. This compliance was introduced as an aftermath of Nirbhaya incident that shook the entire nation. It has been almost three years and there has been negligible implementation of the act (with the exception of the big MNCs who have been complying with this legislation). If there is a similar incident or any other trigger to outrage the nation, the new government can pass an order for strict action against companies that have failed to comply. The situation then will such that companies will scamper to get registered and will end up spending huge fees/fines to comply and avoid action.
The best way to tackle any such situation is to stay on top of the compliance. There are various ways in which companies can avoid the crisis:
- Read the SHWW Act and comply as per the provisions under the Act. The Act is available online on plenty of government websites.
- Hire services of a consultant who can identify and help comply
- Use Compliance Software like CompliCheck to identify and track compliance related to SHWW and other Labour Laws.
Minimum fine for non-compliance is 50,000 and cost of CompliCheck is 599/Month. Just by avoiding one fine you get the cost of 7 years of subscription.