(1) Each organization shall constitute an Inquiry Committee within thirty days of the enactment of this Act to enquire into complaints under this Act.
(2) The Committee shall consist of three members of whom at least one member shall be a woman. One member shall be from senior management and one shall be a senior representative of the employees or a senior employee where there is no CBA. One or more members can be co-opted from outside the organization if the organization is unable to designate three members from within as described above. A Chairperson shall be designated from amongst them.
(3) In case a complaint is made against one of the members of the Inquiry Committee that member should be replaced by another for that particular case. Such member may be from within or outside the organization.
(4) In case where no competent authority is designated the organization shall within thirty days of the enactment of this Act designate a competent authority.

(1) The respective Governments shall appoint an [Ombudsperson] at the Federal and Provincial levels.
(2) A person shall be qualified to be appointed as an [Ombudsperson] who has been a judge of High Court or qualified to be appointed as a judge of High Court. The [Ombudsperson] may recruit such staff as required to achieve the purposes of this Act and the finances will be provided by the respective Governments.

(1) The Inquiry Committee, within three days of receipt of a written complaint, shall—
(a) communicate to the accused the charges and statement of allegations leveled against him, the formal written receipt of which will be given;
(b) require the accused within seven days from the day the charge is communicated to him to submit a written defense and on his failure to do so without reasonable cause, the Committee shall proceed exparte; and
(c) enquire into the charge and may examine such oral or documentary evidence in support of the charge or in defense of the accused as the Committee may consider necessary and each party shall be entitled to cross-examine the witnesses against him.
(2) Subject to the provisions of this Act and any rules made thereunder the Inquiry Committee shall have power to regulate its own procedure for conducting inquiry and for the fixing place and time of its sitting [and, where applicable, apply appropriate child-sensitive procedures.]
(3) The following provisions inter alia shall be followed by the Committee in relation to inquiry:
(a) the statements and other evidence acquired in the inquiry process shall be considered as confidential;
(b) an officer in an organization; if considered necessary, may be nominated to provide advice and assistance to each party;
(c) both parties, the complainant and the accused, shall have the right to be represented or accompanied by a Collective Bargaining Agent representative, a friend or a colleague;
(d) adverse action shall not be taken against the complainant or the witnesses;
(e) the Inquiry Committee shall ensure that the employer or accused shall in no case create any hostile environment for the complainant so as to pressurize her from freely pursuing her complaint; and
(f) the Inquiry Committee shall give its findings in writing by recording reasons thereof.
(4) The Inquiry Committee shall submit its findings and recommendations to the Competent Authority within thirty days of the initiation of inquiry. If the Inquiry Committee finds the accused to be guilty it shall recommend to the Competent Authority for imposing one or more of the following penalties [, as applicable]:
(i) Minor penalties:
(a) censure;
(b) withholding, for a specific period, promotion or increment;
(c) stoppage, for a specific period, at an efficiency bar in the time-scale, otherwise than for unfitness to cross such bar; and
(d) recovery of the compensation payable to the complainant from pay or any other source of the accused;
(ii) Major penalties:
(a) reduction to a lower post or time-scale, or to a lower stage in a time scale;
(b) compulsory retirement;
(c) removal from service;
(d) dismissal from service; [*]
[(da) suspension or cancellation of a professional license; and]
(e) Fine. A part of the fine can be used as compensation for the complainant. In case of the owner, the fine shall be payable to the complainant.
(5) The Competent Authority shall impose the penalty recommended by the Inquiry Committee under subsection (4) within one week of the receipt of the recommendations of the Inquiry Committee.
(6) The Inquiry Committee shall meet on regular basis and monitor the situation regularly until they are satisfied that their recommendations subject to decision, if any of Competent Authority and Appellate Authority have been implemented.
(7) In case the complainant is in trauma the organization will arrange for psycho-social counseling or medical treatment and for additional medical leave.
(8) The organization may also offer compensation to the complainant in case of loss of salary or other damages.

(1) Any [complainant] shall have the option to prefer a complaint either to the [Ombudsperson] or the Inquiry Committee.
(2) The [Ombudsperson] shall within 3 days of receiving a complaint issue a written show cause notice to the accused. The accused, after the receipt of written notice, shall submit written defense to the [Ombudsperson] within five days and his failure to do so without reasonable cause the [Ombudsperson] may precede ex-parte. Both the parties can represent themselves before the [Ombudsperson]. (3) The [Ombudsperson] shall conduct an inquiry into the matter according to the rules made under this Act and conduct proceedings as the [Ombudsperson] deems proper.
(4) For the purposes of an investigation under this Act, the [Ombudsperson] may require any office or member of an organization concerned to furnish any information or to produce any document which in the opinion of the [Ombudsperson] is relevant and helpful in the conduct of the investigation.
(5) The [Ombudsperson] shall record his decision and inform both parties and the management of the concerned organization for implementation of the orders.
[(6) The Ombudsperson shall decide a case or appeal, as the case may be, within a period of ninety days.]

[(h) “harassment” means:—
(i) any unwelcome sexual advance, request for sexual favours, stalking or cyber stalking or other verbal, visual or written communication or physical conduct of a sexual nature or sexually demeaning attitudes, including any gestures or expression conveying derogatory connotation causing interference with work performance or creating an intimidating, hostile or offensive work environment, or the attempt to punish the complainant for refusal to comply to such a request or is made a condition for employment; or
(ii) discrimination on basis of gender, which may or may not be sexual in nature, but which may embody a discriminatory and prejudicial mind set or notion, resulting in discriminatory behavior on basis of gender against the complainant;]