Hi,
Sexual harassment in the workplace is considered grave misconduct in the eyes of the law. You can immediately suspend the employee who has committed the misconduct and initiate a regular departmental inquiry against them by appointing an inquiry officer (refer to the provisions of the Model Standing Orders). If the inquiry officer finds the employee guilty, they can be terminated.
Alternatively, you can file a police complaint through the victim. When the police arrest the employee, you can suspend them until the final decision of the criminal court. You should await the decision of the criminal court. If the criminal court acquits the employee, you must take them back to work. If they are convicted, you can terminate their employment.
S.M. Paranjape, Advocate