Synopsis
Allegations of harassment at Tata Consultancy Services’ Nashik unit could trigger tighter scrutiny of Indian IT companies by global clients, boards and shareholders, forcing companies to overhaul workplace complaint-handling systems and tighten Prevention of Sexual Harassment (PoSH) compliance.Listen to this article in summarized format
The fallout could give boards greater visibility into harassment cases and lead to stronger oversight at smaller campuses of IT firms, industry experts said.
“This incident is an eye opener and could be a turning point of how the IT industry takes PoSH cases going forward,” said Pareekh Jain, CEO of online information platform EIIRTrend.
Global clients are likely to proactively seek PoSH audits across IT service centres, “especially for junior and farthest employees from the corporate hierarchy,” forcing service providers to review governance across their delivery networks, he said.
Companies can no longer assume low complaint numbers indicate systems are working, Jain said, adding, “Absence of evidence doesn’t mean evidence of absence.”
He further noted that the case could also push IT firms to voluntarily publish PoSH reports, much like ESG disclosures, to show clients, boards and investors how complaints are tracked and resolved.
Legal experts said companies risk reputational damage as well as legal exposure.
“The risk is no longer just misconduct but failure of process under the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013,” said Raheel Patel, partner at Gandhi Law Associates.
Companies can be held liable if internal complaints are not acted upon properly, he said.
“Clients, especially global ones, may now begin seeking tighter contractual assurances around PoSH compliance, audit rights and mandatory reporting, effectively turning workplace safety into a commercial risk issue,” Patel noted.
TCS has launched a probe into allegations of workplace harassment including sexual misconduct involving employees at its Nashik office. The police have arrested seven company employees in connection with the case.
