All employees, regardless of position, must ensure safety, fairness, and respect in the workplace. In India, this is not optional. This is codified in law. The law on POSH requires employers to take active steps to prevent and respond to sexual harassment in the workplace. Failure to do so not only attracts a monetary penalty but may also have potential adverse publicity and loss of employees' confidence. In this blog, we outline the requirements of the law and offer suggestions on how to be compliant.
What Is the POSH Act?
The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, is popularly referred to as the POSH Act.
It applies to:
● Private companies
● Government offices
● NGOs and Trusts
● Start-ups and small enterprises
● Any workplace with 10 or more employees
The POSH Act offers protection to women from harassment at:
● Office premises
● Work-from-home arrangements
● During business trips
● At business events and meetings
What Is Sexual Harassment?
The definition of sexual harassment is extensive and includes:
● Physical contact or advances
● Requests for sexual favours
● Sexually colored remarks
● Exhibition of pornography
● Any unwelcome conduct of a sexual nature
When specific conduct is directed at a woman and constitutes a hostile or unsafe work environment, those actions may be categorised as harassment of women.
Legal Obligations of Employers
Every organisation that falls under the purview of the Act is expected to adhere to the following legal obligations:
1. Establish a POSH Policy
A written POSH Policy is a legal requirement. It should clearly explain:
● What harassment entails
● How an individual can file complaints
● The time frame for actions to be taken.
● The potential consequences for the person accused.
● The rights are entitled to the person filing the complaint.
The policy should be:
● To be shared with every new and existing employee
● To be made available for viewing in the workplace
● To be made available in the HR manual
2. Establishing Internal Committees (IC)
Having an Internal Committee is a requirement for a workplace with 10 or more employees.
It should be composed of:
● A senior woman employee to act as the Presiding Officer
● A minimum of two employees are to be in charge of women’s rights
● One external member of an NGO or with a legal background
The IC is responsible for receiving complaints and conducting all the investigations.
3. Training and Awareness
An employer is obligated to inform the employees of:
● What sexual harassment is
● What the process of filing a complaint is
● What the IC’s function is
● What the rights and obligations of the employee are
Training is to be held on a regular basis, and records of the training are to be kept.
4. Handling of Complaints
The POSH Act has specific requirements:
● Complaints must be made within 3 months of the date the complainant became aware of the offence.
● The investigation must be completed within 90 days.
● Action must be taken in 60 days
● The investigation should not be disclosed to others
The victims are entitled to:
● A transfer
● Leave
● Protective measures or changes to the work assignment
● Disciplinary measures against the alleged offender
An attorney who specialises in workplace harassment can assist organisations in following the proper protocols.
5. Annual Reporting
Companies must provide the following information in their annual reports:
● Number of complaints received
● Number of complaints resolved
● Number of pending complaints
Failure to provide these reports will result in a compliance violation.
Who Needs to Comply With POSH
POSH applies to:
● Permanent employees
● Contract employees
● Interns
● Trainees
● Consultants
● Domestic Workers
Even a single instance of harassment can result in litigation.
Consequences Of Not Complying With The Law
Not complying with the act can result in:
● Litigation
● Loss of reputation
● A business license may be revoked
● Financial penalties of up to ₹50,000
● Repeated offences lead to more financial penalties
This is the reason many organisations are seeking the assistance of work harassment lawyers to conduct compliance audits.
What POSH Compliance Means in the Real World
Some of the benefits of a POSH compliance are:
● Increase employer reputation
● Increase the ability to retain women
● Create a more positive work environment
Companies that perform audits of their existing POSH policies demonstrate a serious commitment to employee safety.
What Companies Often Get Wrong
● No Internal Committee
● No Committee Members
● No External Member of the Committee
● Inadequate Documentation
● No Action Taken on Anonymous Complaints
● Non-Compliance with Training
All of these mistakes only add to the legal liability of the employer.
How Companies Can Stay Compliant
Best practices include:
● Annual review of the POSH Policy
● Regular training sessions
● Updating IC records
● Policy display
● Document complaints
● Legal clarity
Conclusion
Compliance means understanding the law and ethics of responsibility. The Posh Act enforces companies to document, train, and set inquiry systems to address women harassment. With a POSH Policy and a women's harassment advocate, workplaces can be safe and trustworthy, with policies that ensure compliance.
