Workplace harassment and gender inequality continue to be persistent challenges in urban institutions despite increasing female participation in the workforce and the presence of legal safeguards. This paper examines the nature, forms, and impact of workplace harassment on women employees in urban public institutions. It also explores how structural inequalities, patriarchal norms, and organizational culture contribute to gender-based discrimination. Drawing on sociological theories and existing literature, the study highlights the gap between policy and practice, particularly in the implementation of laws such as the POSH Act. The paper concludes that while urban institutions offer better employment opportunities, they also reproduce gender inequalities through subtle and overt mechanisms. Policy recommendations are provided to promote safe and inclusive workplaces.