Employer Action Code: Act
Legislation (Law 16, 744, known as the ‘Karin Law’) that amends the Labor Code will come into force on July 1, 2024, imposing new obligations on employers to mitigate and report on workplace harassment, sexual harassment, and violence in the workplace. The new law also takes a more expansive approach to defining workplace and sexual harassment, recognizing single incidents as potential violations, and covering third parties such as customers or suppliers.
Key details
All employers will be required to implement procedures to prevent sexual harassment, workplace harassment and violence (including that involving third parties such as customers and suppliers) in the workplace. The procedures must identify and assess the risks associated with such matters from a gender perspective, and include measures to:
- Mitigate such risks, with quantifiable objectives
- Monitor the effectiveness of the measures and ensure their continuous improvement
- Inform and educate employees about the risks identified and measures implemented, including the rights and responsibilities of the employer and employees
- Ensure robust investigation of any complaints, for both single incidents and repeat occurrences
The law introduces the following new provisions in terms of complaints procedures, in order for employers to investigate such complaints and deal with the matters accordingly:
- Complaints can be registered orally or in writing with the employer, with contracted mutual societies that administer occupational accident and disease insurance , or with the labor authorities directly. Oral complaints received by the employer must be formally recorded in writing by the individual who receives the complaint and signed by the complainant (who is provided with a copy).
- Once the complaint has been received (directly or indirectly), the employer must investigate the claim internally or refer the matter to the labor authorities within three days. In either case, the investigation must be completed within 30 days. The employer must submit the results of internal investigations to the labor authorities, which have another 30 days to review the findings and conclusions. No action by the labor authorities on the findings within that time frame will be considered as agreement.
- As part of the procedures to safeguard the parties concerned while the matter is assessed, the employer must immediately take the necessary measures established by internal policies to safeguard the individuals involved (e.g., separation of physical workspaces, redistribution of working hours) and offer counseling to the complainant through programs provided by mutual societies.
- Employers must inform workers every six months about the reporting channels maintained by the company relating to the prevention and investigation of and sanctions on sexual harassment, workplace harassment and violence in the workplace.
Employer implications
The requirement for companies to have policies and provisions for the prevention of workplace harassment is not uncommon globally, but the requirement for external reporting on all investigations is unusually prescriptive. Companies should analyze the new requirements and update their internal employment policies and procedures accordingly.
