The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013 commonly known as the POSH Act, is a critical piece of legislation aimed at safeguarding the dignity and safety of women in the workplace. Compliance with this act is not just a legal requirement but a moral imperative. Additionally, the Companies Act, 2013, imposes specific obligations on companies regarding the disclosure of constitution of internal complaints committees and complaints addressed.
This legislation is aimed at preventing any form of misconduct towards women in the workplace, making it a safer and more respectful environment for all. In this article, we will break down the key aspects of the POSH Act, making it easy to understand for everyone.
Who Does the POSH Act Apply To?
The POSH Act is applicable to every company, workspace, establishment, or organization that employs ten or more individuals. This includes full-time employees, part-time workers, interns, and those on contract, regardless of the industry or location of the workplace.
Key Steps under the POSH Act
The POSH Act outlines several critical steps that organizations must follow to create a safe and respectful workspace for women employees. These steps include:
1. Constitution of the Internal Complaints Committee (ICC)
The POSH Act mandates that every employer forms an Internal Complaints Committee (ICC) to address issues of sexual harassment. The ICC should comprise the following members:
- Presiding Officer: A senior female employee within the organization.
- Two Internal Members: At least two members from the organization’s workforce, preferably those committed to women’s causes, experienced in social work, or possessing legal knowledge.
- One External Member: A member from non-governmental organizations or associations dedicated to the welfare of women.
- Responsibilities: The ICC is responsible for receiving, investigating, and resolving complaints of sexual harassment. They ensure a fair and unbiased inquiry into each case.
- Timeliness: The ICC must carry out its proceedings promptly, adhering to the timelines stipulated under the POSH Act.
- Payment to External Members: Employers must compensate external members for their participation in ICC proceedings.
Important Points Regarding the Internal Committee
- At least half of the IC members should be women.
- IC members can serve for up to three years.
2. Formulation of Internal POSH Policy
Organizations are required to develop a comprehensive Prevention of Sexual Harassment (POSH) policy. This policy serves as a foundational document for creating a safe and respectful work environment. Key components of the policy include:
- Objective and Purpose: The policy should clearly state its objective, which is to prevent and address sexual harassment at the workplace.
- Scope: Define who the policy applies to (e.g., employees, contractors, interns) and specify where it applies within the organization.
- Definition: Precisely define what constitutes sexual harassment to ensure clarity for all employees.
- Responsibilities: Clearly outline the responsibilities of all individuals involved in the complaint process, including complainants, alleged offenders, and witnesses.
- Procedures: Describe the process for filing complaints, conducting investigations, and communicating findings, along with associated timelines.
- Disciplinary Actions: Specify the potential disciplinary actions and penalties for offenders.
- Appeal Process: Detail the steps involved in the appeal process for both complainants and respondents.
- Compensation Program: Include provisions for compensating complainants who have experienced sexual harassment.
- Privacy Clause: Ensure the inclusion of a privacy clause to safeguard the confidentiality of cases.
3. Organizing Workshops, Awareness, and Orientation Programs
Employers have a responsibility to foster awareness and education about sexual harassment prevention. Key obligations include:
- Workshops and Awareness Programs: Regularly conducting workshops and awareness programs for all employees to sensitize them about their rights and responsibilities under the POSH Act.
- Orientation Programs: Organizing orientation programs for members of the Internal Complaints Committee to ensure they understand their roles and responsibilities effectively.
- Display of Information: Posting information about the consequences of sexual harassment and the order establishing the Internal Committee at conspicuous locations in the workplace.
4. Submitting Reports under the POSH Act
- Annual Report by ICC: The Internal Complaints Committee or the Local Committee, as applicable, must prepare and submit an annual report to the employer and the district officer each calendar year.
- District Officer’s Report: The district officer will compile and forward a brief report based on the annual reports received from Internal Complaints Committees.
- Employer’s Report: Employers must include the number of cases filed (if any) and their outcomes in their annual reports.
- The total number of sexual harassment complaints received during the reporting period.
- The total number of sexual harassment complaints that were actioned and resolved.
- The total number of sexual harassment complaints that remained under investigation for more than 90 days.
- The number of employees in the organization who received POSH awareness training.
- Details of any actions taken by the organization or the District Officer in response to reported cases.
- The deadline for submitting the annual report is January 31st of each year, covering the preceding calendar year.
Compliance under Companies Act, 2013
1. Disclosure in Directors’ Report
Rule 8 of the Companies (Accounts) Rules, 2014, mandates that companies include a statement in their directors’ report confirming compliance with the provisions related to the constitution of internal complaints committees under the POSH Act. Failure to disclose this information can lead to penalties under the Companies Act, 2013.
Penalties for Non-Compliance
1. Penalties under the POSH Act
The POSH Act specifies several penalties for non-compliance:
- Failure to Constitute ICC: Employers failing to establish an Internal Complaints Committee may face a fine of up to Rs. 50,000.
- Non-Compliance with ICC Recommendations: If an employer does not comply with the recommendations of the Internal Complaints Committee, they may be liable for penalties.
- Failure to File Annual Report: Not filing an annual report to the district officer as required by the POSH Act can lead to penalties.
- Contravention of Act or Rules: Any contravention or attempt to contravene the provisions of the POSH Act or its rules may result in penalties.
2. Repeat Offenders under the POSH Act
If an employer is convicted of the same offense after a prior conviction under the POSH Act, they may face more severe penalties, potentially twice the punishment imposed during the first conviction.
3. Cancellation of License or Registration
In addition to fines and penalties, the POSH Act provides for the cancellation of the employer’s license, withdrawal, non-renewal, or cancellation of registration required for carrying out their business or activity.
Conclusion
Compliance with the POSH Act and related regulations is not just a legal requirement; it is essential for creating a workplace that is safe and respectful for all employees, particularly women.
In conclusion, the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act is a crucial step towards ensuring the safety and dignity of women in the workplace. By following its guidelines, organizations can create a work environment that is respectful, supportive, and free from harassment.
Author is a Qualified Company Secretary, with over four years of comprehensive experience and knowledge in navigating complex Act, Rules and Regulations, including but not limited to The Companies Act, 2013, FEMA, LODR, PIT, SEBI ICDR and more. With a strong passion for law and ongoing pursuit of an LLB degree, possess a comprehensive understanding of legal principles and practices. Author can be connected at malhotrabhuvesh@gmail.com.
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Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice. For legal advice, please consult with a Qualified Company Secretary familiar with the relevant laws and regulations. I make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the article or the information contained in it.
Author Bio
POSH (Prevention of Sexual Harassment) compliance encompasses a series of policies, protocols, and actions designed to prevent and handle instances of sexual harassment within the workplace. It mandates that organizations comply with legal obligations and foster a secure and welcoming workplace environment for every employee.