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Chapter V · Inquiry & Relief

Section 15

Determination of compensation

Section OverviewPending legal verification
For the purpose of making an order of deduction from the salary or wages of the respondent under section 13, the Internal Committee or the Local Committee, as the case may be, shall have regard to—
the mental trauma, pain, suffering and emotional distress caused to the aggrieved woman;
the loss in the career opportunity due to the incident of sexual harassment;
medical expenses incurred by the victim for physical or psychiatric treatment;
the income and financial status of the respondent;
the feasibility of such payment in lump sum or in instalments.

Temporary structural and explanatory content only; it is not a verbatim reproduction. Complete statutory text and legal commentary will be integrated after separate legal verification.

Plain Language

When the committee recommends compensation, it must consider five specific factors: mental trauma and suffering, loss of career opportunity, medical expenses, the respondent's income, and whether payment should be lump sum or in instalments.

Compensation is meant to reflect the real impact of the misconduct on the aggrieved woman, not an arbitrary figure.

The committee can recommend deduction from the respondent's salary to pay the compensation.

Why It Matters

Section 15 makes compensation a factor-driven exercise, not a discretionary one. The committee must record how each factor was considered.

It covers both tangible losses (medical expenses, career opportunity) and intangible harm (mental trauma, emotional distress).

The inclusion of the respondent's income ensures the compensation amount is realistic and enforceable.

The lump-sum vs instalment option provides flexibility for both the respondent's capacity and the aggrieved woman's needs.

Practical Example

Factor-based compensation

Scenario: The IC finds the allegation proved. The aggrieved woman incurred Rs 30,000 in counselling costs and lost a promotion opportunity. The respondent earns Rs 80,000 per month.

Outcome: The IC considers all five factors under Section 15 and recommends Rs 1,50,000 compensation, payable in three monthly instalments deducted from the respondent's salary.

Career loss and medical costs

Scenario: The aggrieved woman suffered severe anxiety requiring psychiatric treatment and was forced to resign due to workplace hostility.

Outcome: The IC weighs the mental trauma, medical expenses, and loss of career opportunity heavily, recommending a higher compensation amount commensurate with the respondent's financial capacity.

Who Must Act

ic member

  • Record the basis for compensation clearly, addressing each factor under Section 15.
  • Consider evidence of mental trauma, career loss, medical expenses, and the respondent's income.
  • Recommend whether payment should be lump sum or in instalments.

employee

  • Document concrete effects on work, health, and income if compensation is in issue.
  • Provide evidence of medical expenses and career impact to support the compensation claim.

employer

  • Implement the compensation deduction as recommended by the committee.
  • Deduct from the respondent's salary notwithstanding any inconsistent service rules.

Compliance

Have regard to the five specified factors when determining compensation

Actor: Internal Committee / Local Committee · Rule: Section 15

Record the basis for the compensation amount with reference to each factor

Actor: Internal Committee / Local Committee · Rule: Section 15

Common Mistakes

Recommending an arbitrary compensation amount without addressing the Section 15 factors.

Failing to consider intangible harm like mental trauma and emotional distress — these are statutory factors.

Ignoring the feasibility of payment — the committee should consider whether lump sum or instalments are appropriate.

Not documenting the reasoning for the compensation figure, which can make the recommendation vulnerable to appeal.

Source & Status

This page contains temporary structural and explanatory content, not a verbatim reproduction of the Act.

Source: Ministry of Law and Justice, Government of India

Publication status: Temporary content pending separate legal verification