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Redefining Accountability: Employer Responsibility and POSH in the Gig Economy

Redefining Accountability: Employer Responsibility and POSH in the Gig Economy

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As the gig economy grows and evolves, so must the legal framework that governs it. With more people participating in non-traditional work arrangements, companies need to recognize their responsibility in safeguarding both workers and consumers. The recent Karnataka High Court ruling is crucial because it acknowledges that the traditional boundaries of “employer-employee” relationships no longer apply in this new economic landscape. Let’s see some key factors and observations for this landmark case :

  1. Corporate Accountability: Companies must go beyond mere damage control and PR tactics when addressing such serious complaints. Organisation’s attempt to dodge responsibility by claiming the driver was not an “employee” clearly disregards the law’s intent. Ensuring user safety is not just a moral obligation but a legal one. It’s shocking that a corporation of this scale failed to acknowledge that responsibility.
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  3. Right Governance with survivor-centered redressal: Proactive and stringent measures are essential, simply “blacklisting” the driver and offering counseling falls far short of what the situation warranted. This response reflects a significant failure on the ride-sharing platform’s part to protect its users and adequately address such misconduct. The court’s recognition of the victim’s dissatisfaction with the company’s response underscores the need for survivor-centered redressal mechanisms.
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  5. IC’s Role and Diligence: The court’s mandate for the Internal Committee (IC) to conduct an inquiry reaffirms the vital role ICs must play with integrity and thoroughness. The IC’s initial refusal to act points to a trend of complacency and ignorance, even in well-established organizations. The court’s intervention serves as a reminder that ICs must be empowered to handle cases impartially and decisively.
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  7. Accountability Beyond Corporates – Government and Regulatory Bodies: The court didn’t just penalize the corporate entity—it also fined the Karnataka State Transport Authority (KSTA) for negligence and inaction. This shows that government agencies and regulators play an equally critical role in upholding the law. Their failure to act worsens the situation for harassment victims. This case sets an example for shared accountability between corporate entities and government bodies.
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  9. Training and Awareness at All Levels: There is a clear lack of awareness within companies about how to handle such complaints effectively. Inadequate training and poor policy implementation can result in severe legal and financial consequences for organizations. IC members, managers, and decision-makers should undergo regular sensitization training to ensure complaints are handled with the seriousness they deserve. A strong POSH policy is only as effective as its execution.
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  11. The Need for Independent Oversight: This case raises the question of whether ICs, especially in large organizations, can remain truly independent. External, neutral oversight or audits of IC processes can help ensure companies are not bypassing or downplaying complaints. Independent oversight could be a powerful tool to prevent bias, guarantee accountability, and restore faith in the system.
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The mishandling of sexual harassment complaints not only has legal repercussions but also damages public trust. In today’s world, where customer loyalty and brand reputation are critical, mishandling such sensitive issues can result in long-term damage. Organizations that prioritize transparent and accountable handling of harassment cases will ultimately build stronger trust and loyalty with both customers and employees.

https://timesofindia.indiatimes.com/city/bengaluru/karnataka-high-court-defines-ola-driver-as-employee-imposes-rs-55l-fine/articleshow/113862237.cms

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