Webinar on Prevention of Sexual Harassment At Workplace

Prevention of Sexual Harassment At Workplace

When : August 23, 2019 | Timing: 4.30 p.m to 5.30 p.m.

What Will The Webinar Cover?
Not sure whether you need a POSH Policy or an Internal Complaints Committee (ICC)? Worried about a #metoo situation in your office? Join LexStart for a discussion on the key requirements under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Law) and understand what the law actually requires.
Who Should Attend?
  • Founders, Promoters, Entrepreneurs
  • Directors
  • Investors
  • HR Personnel

 

Key Takeaways
  • Understand the law in India on Prevention of Sexual Harassment at Workplace
  • Key terms that should go into a Policy for Prevention of Sexual Harassment at Workplace
  • Constitution of Internal Complaints Committee
  • ABCs of how to respond to a #metoo situation

 

About the Speaker
Deeksha Singh is a corporate lawyer with more than a decade of experience in corporate laws. She regularly advises on laws relating to prevention of sexual  harassment at workplace. She also regularly conducts sensitization training programs for employees at companies and training programs for ICC members on how to stay compliant with POSH Law and handle complaints addressed to the ICC.

GOVERNMENT PROPOSES MAJOR LABOUR LAW CHANGES FOR EASE OF COMPLIANCE

PROPOSED MAJOR LABOUR LAW CHANGES FOR EASE OF COMPLIANCE

The Code on Occupational Safety, Health and Working Conditions, 2019 (“OSHW”), introduced by the Ministry of Labour and Employment introduces provisions allowing companies to have a single registration, which will be coupled with a single licence, along with a single return, for executing projects for five years involving contract workers, across the country.

An establishment will require a single registration instead of around 10 required to be done for all labour laws, a move that may help India bolster its “ease of doing business” ranking. Significantly, the Code on OSHW will cover all establishments hiring at least 10 workers, including those in services sector, thereby bringing the information technology sector within its ambit.

Employers will have to create a security deposit with the government at the time of obtaining such licence and specify the number of contract workers it might require. In case an employer wants to hire more contract workers, it will have to go back to the government to renew the licence and make an additional deposit.

In a further bid to improve ease of doing business, the Centre has proposed assigning “inspector-cum-facilitators” outside their jurisdiction “through randomised computer system”.

The provision of one licence and one return in place of multiple licences and returns in existing 13 labour laws subsumed in this Code is intended to save time, resources and efforts of businesses.

Mandatory POSH filing under Prevention of Sexual Harassment Act

Constitution of your Internal Committee, POSH ACT
The Government of Maharashtra has issued a letter requiring employers of workplaces in the District of Mumbai City employing 10 or more employees to report details of constitution of their Internal Committee (IC) under Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
The Form on Page 3 of the letter needs to be filled in and mailed by July 20, 2019, failing which a penalty of INR 50,000 will apply.
The Form and its attachments have to be sent to the address below:
1. District Collector or Deputy District Collector, Office of District collector, Old Customs House, Shahid Bhagat Singh Rd, Marg, Fort, Mumbai, Maharashtra 400001.
2. Copy to- (a)Deputy Commissioner(Women Development), Department of Development of Women and Child, Pune.
(b) Departmental Deputy Commissioner, Department of Women and Child, Konkan Division, Mumbai.
To know more contact us at [email protected]

LexStart’s LexGyaan Series: Can I grant ESOPs to a Co-Founder?

Granting ESOPs to Promoters/Co-Founders

I often get asked this question – “Can I grant ESOPs to a Co-Founder who I recently brought on board my Startup?”. Well the answer is both yes and no!

The Companies Act, 2013 prohibits grant of ESOPs to the Promoter of a company. The term “Promoter” does not necessarily refer to only a person who is named as a Promoter at the time of incorporation of the company. A Promoter is defined broadly and includes, the following:

  • Any person who has been named as such in a prospectus or is identified by the company in its annual return; or
  • Any person who has control over the affairs of the company, directly or indirectly whether as a shareholder, director or otherwise; or
  • Any person in accordance with whose advice, directions or instructions the Board of Directors of the company is accustomed to act. Provided that such person is not someone who is acting merely in a professional capacity.

Therefore, typically a Co-Founder who you bring on board at a later stage, may not be a Promoter as stated in the Charter Documents (Memorandum and Articles of Association of your Startup) but still can be considered a “Promoter”, thus restricting him from receiving ESOPs in the company.

ESOPs to Promoters/Co-Founders of recognized Startups

The Companies Act, 2013 has made an exception to the above rule, by allowing Startups that are recognized by Govt. of India to grant ESOPs to founders, as long as the grant of such ESOPs is within 5 years from their incorporation. This means if your Startup has a Certificate of Recognition from DPIT, Govt. of India, then you can grant ESOPs to Promoters/Co-founders.

Related Readings : How to Get Startup India Registration

FAQs on ESOPs

 

What happens if an employee leaves the company before the shares have vested?

This depends on the ESOP policy of the company. The norm is for the unvested ESOPs to lapse upon cessation of employment. This means that the employee will not be able to exercise and avail ESOP benefits from those ESOPs any more.

However, in case an employee suffers a permanent incapacity while in employment, all the ESOPs granted to him as on the date of permanent incapacitation, shall vest in him on that day and in the event of the death of an employee while in employment, all the ESOPs granted to him till such date shall vest in the legal heirs or nominees of the deceased employee.

Below are the typical scenarios:

Company Friendly
Event Vested Unvested
Termination with Cause Lapse Lapse
Termination without Cause Exercise within the notice period Lapse
Resignation Exercise within the notice period Lapse
Death or Disability Exercise within 3 months of the event Exercise within 3 months of the event
Retirement Exercise on or before the last working day Lapse

 

Employee Friendly
Event Vested Unvested
Termination with Cause Exercise immediately Lapse
Termination without Cause Exercise immediately Lapse
Resignation Exercise immediately Lapse
Death or Disability Exercise within 6 months of the event Exercise within 6 months of the event
Retirement Exercise within 6 months of the event Exercise within 6 months of the event

What does Cause in the above scenario mean?

 If your employment agreement has a definition of cause, you could consider including that. If not, then we would recommend the following definition:

“Cause” shall include:

  • Wilful insubordination or disobedience, whether or not in combination with another, of any lawful and reasonable order of a superior.
  • Theft, fraud, misappropriation, embezzlement, moral turpitude or dishonesty in connection with the employer’s business or property.
  • Habitual absence without leave, overstaying the sanctioned leave without sufficient grounds, or proper and satisfactory explanation, or habitual late attendance.
  • Commission of any act subversive of discipline or good behavior on the premises of the Company, such as, drunkenness, riotous, disorderly or indecent behavior, gambling or taking or giving bribes or any illegal gratification whatsoever.
  • Disregard of the rules of the Company.
  • Disclosing to any unauthorized person any confidential information with respect to the Company and/or its business and/or its operation, including but not limited to trade secrets, intellectual property etc.
  • Commission or attempt to commit any cyber-crime.
  • Proven instance of sexual harassment.
  • Any other grounds that results in the Board of Directors of the Company to conclude that the act or omission by the concerned person may result in loss, damage or injury to the Company.