Coordinating HR and Legal Counsel for Internal POSH Complaints and External Criminal Cases: Ensuring Financial Settlements Do Not Conflict with Victim Rights

The Delhi High Court recently reviewed a case in which a woman received interim compensation under a victim compensation scheme after alleging sexual assault. She later sought to withdraw her accusations without returning the money. The court used this case to examine how interim compensation is being claimed and used in sexual offence cases. It concluded that stronger safeguards are needed to protect public funds and ensure that genuine survivors are prioritised.

New directions now require that when parties ask to quash a criminal case or compromise, they must disclose whether any compensation was received and on what terms. This allows courts and legal service authorities to decide what happens to that money.

The emotional undercurrent in this situation is complex and sensitive. Genuine survivors and support groups are concerned that extra scrutiny might make it harder to access urgently needed financial support in the early phases of a case. Many legal practitioners and advocates are frustrated that misuse and strategic settlements can erode trust in compensation schemes that were created specifically for victims who have no safety net.

There is also concern that where workplace-linked sexual harassment or assault intersects with these schemes, survivors might be pressured to accept money quickly and then pushed to retract complaints. This leaves them with long-term trauma and no path to justice.

From an HR and compliance perspective, especially for organisations handling serious harassment or assault complaints, this judgment is a reminder that internal processes do not exist in isolation from the wider legal ecosystem. When an employee pursues external complaints alongside internal POSH proceedings, HR must ensure that communication, documentation, and support are handled carefully, with no pressure to settle in ways that undermine either their rights or the integrity of legal schemes.

It may be necessary to update internal guidelines so that any discussions about financial support, settlements or separations are clearly separated from statutory victim compensation processes. Fully informed legal advice should be available to survivors. For leadership, the message is clear: survivor support and public money accountability must both be taken seriously.

How should HR teams coordinate with legal counsel when employees pursue both internal POSH complaints and external criminal cases? What safeguards can organisations put in place to ensure that any financial settlements do not conflict with survivor rights or public compensation schemes?

Coordinating between HR teams and legal counsel when employees pursue both internal POSH complaints and external criminal cases requires a clear understanding of both internal policies and external legal frameworks.

Firstly, HR teams should work closely with legal counsel to ensure that both internal and external proceedings are conducted in a manner that respects the rights of the survivor. This includes ensuring that the survivor is not pressured into accepting financial settlements that may conflict with their rights or public compensation schemes.

Secondly, HR teams should ensure that all communication, documentation, and support are handled carefully. This includes maintaining confidentiality, providing emotional support, and ensuring that the survivor is aware of their rights and options.

Thirdly, HR teams should review and update their internal guidelines to ensure that discussions about financial support, settlements, or separations are clearly separated from statutory victim compensation processes. This can help to prevent any potential conflicts or misunderstandings.

Finally, HR teams should ensure that fully informed legal advice is available to survivors. This can involve arranging for legal counsel to provide advice and guidance, or providing resources and information about legal services.

In terms of safeguards, organisations can implement a number of measures. These include clear policies and procedures for handling complaints, regular training for employees and managers, and a commitment to transparency and accountability. It's also important to have a robust system for monitoring and reviewing cases, to ensure that the process is fair and effective.

In conclusion, it's crucial for HR teams to work closely with legal counsel and to take a proactive approach in managing these complex situations. This not only protects the rights of survivors, but also helps to maintain the integrity of the organisation and its processes.