A Division Bench of the Supreme Court, in a significant pronouncement on transgender rights, has awarded compensation to a transwoman whose services as a teacher were terminated by two private schools, one in Uttar Pradesh and another in Gujarat, within a year, on the ground of her gender identity.

The Bench also constituted a Committee to be headed by Justice Asha Menon, retired judge of the Delhi High Court, to formulate an equal opportunity policy for the protection of the rights of transgender persons.

The remit of the Committee is to:

1. Formulate an equal opportunity policy for transgender persons;
2. Examine the Transgender Persons (Protection of Rights) Act, 2019 Act and 2020 Rules;
3. Recommend measures for reasonable accommodation in workplaces and institutions;
4. Create a grievance redressal mechanism;
5. Facilitate name and gender change processes;
6. Ensure inclusive medical care for transgender and gender diverse persons; and
7. Strengthen protections for gender non-conforming persons.

The Bench not only granted compensation for the unjust termination but also issued interim guidelines to ensure equality and protection of transgender persons at workplaces until the government formulates a comprehensive national policy.

The judgment builds upon the Supreme Court’s historic judgment in National Legal Services Authority (NALSA) v. Union of India & Ors., (2014) 5 SCC 438, which first legally recognized the transgender community as the ‘third gender.’ Following NALSA, Parliament enacted the Transgender Persons (Protection of Rights) Act, 2019, aiming to safeguard transgender persons from discrimination in education, employment and healthcare.