In a significant development for ride-hailing company Ola, the Karnataka High Court has granted temporary relief by staying a previous order that mandated the company to pay a Rs 5.5 lakh penalty for not addressing a sexual harassment complaint. The case stems from an incident involving a woman who alleged that she was sexually harassed by an Ola driver, with Ola arguing that its drivers are independent contractors, not employees, which could impact the applicability of the PoSH Act.
On September 30, 2024, a single-judge bench had ruled that the driver in question was considered an “employee” of Ola. However, Ola’s senior advocate contended that the drivers operate independently and therefore should not be classified as employees of the company.
The complaint dates back to August 23, 2018, when the woman reported being harassed during a ride from Yelahanka to J.P. Nagar. She alleged that the driver was watching pornographic content on his mobile device while engaging in inappropriate behavior.
The vacation division bench, comprising Justices S.R. Krishna Kumar and M.G. Uma, issued the stay after Ola’s counsel, Dhyan Chinnappa, argued that the single bench’s conclusion regarding the employee-employer relationship was incorrect. “We don’t employ drivers; they hire Ola… Drivers are independent contractors,” he stated.
Chinnappa also emphasized that the company is primarily concerned with the applicability of the PoSH Act and confirmed that the compensation amount would be deposited. The court has issued notices to various parties involved and scheduled further hearings for October 28.
