Posh Compliance ensures safer workplaces for women. Learn how we can help you achieve compliance with POSH laws at Vakilsearch.
Constitute an Internal Committee (Erstwhile Internal Complaint Committee) Under Posh Act
Sexual harassment in the workplace is a serious concern that affects not only the victim but also the entire organisation. To address such issues, the Indian Government passed the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013, commonly known as the POSH Act. It is mandatory for all employers in India to establish an Internal Complaint Committee (ICC) under this act. The ICC is responsible for receiving and investigating complaints of sexual harassment in the workplace.
Formulate a Sexual Harassment Policy
A Sexual Harassment Policy is an essential aspect of any organisation’s effort to prevent and address sexual harassment in the workplace. It is a framework that outlines the steps that will be taken to investigate and address complaints of sexual harassment. Formulating a Sexual Harassment Policy involves several steps, including defining sexual harassment, developing a complaint process, establishing an Internal Complaint Committee (ICC), providing training, and publicising the policy.
The policy should provide a clear definition of what constitutes sexual harassment, as well as examples of unacceptable behaviour. It should also outline the steps employees should take if they experience or witness sexual harassment, including a complaint process that is simple, clear, and easily accessible. The policy should also establish an ICC responsible for receiving and investigating complaints of sexual harassment. It is crucial to provide appropriate training to all employees to understand the provisions of the policy, how to recognise and report instances of sexual harassment, and their rights and responsibilities as employees. Finally, the policy should be widely publicised among employees, encouraging them to report any instances of sexual harassment without fear of retaliation.
Conducting Posh Investigations Under the Posh Act and Rules
Under the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013 (POSH Act), employers in India are required to establish an Internal Complaint Committee (ICC) to investigate complaints of sexual harassment at the workplace. The ICC is responsible for conducting fair and impartial investigations into complaints of sexual harassment and recommending appropriate action to be taken against the accused.
Steps to Conduct Posh Investigations:
Receipt of Complaint: The first step in conducting a Posh investigation is to receive a complaint of sexual harassment. The complaint can be filed by the victim, a witness, or any other person who has knowledge of the incident.
Constitute an Internal Complaint Committee (ICC): Once a complaint is received, the ICC should be constituted to investigate the complaint. The ICC should consist of at least four members, including a Presiding Officer, two employees (preferably women), and one external member from an NGO or any other organisation that works on women’s rights issues.
Conduct a Preliminary Inquiry: Before initiating a full-fledged investigation, the ICC should conduct a preliminary inquiry to determine the prima facie case of sexual harassment. The preliminary inquiry should be conducted within seven days of receipt of the complaint.
Inform the Accused: If the ICC determines that there is a prima facie case of sexual harassment, it should inform the accused and provide them with an opportunity to respond to the allegations. The accused should be given at least 10 days to respond.
Conduct a Full-Fledged Investigation: If the accused does not respond to the notice or if the ICC is not satisfied with the response, it should initiate a full-fledged investigation. The investigation should be conducted in a fair, impartial, and confidential manner.
Submit Report and Recommendations: Once the investigation is complete, the ICC should submit a report of its findings to the employer. The report should include the details of the complaint, the findings of the investigation, and the recommendations for action to be taken against the accused.
Employer’s Action: The employer is required to take appropriate action based on the recommendations of the ICC. The action may include a warning, termination, or any other action that the employer deems fit.
The Risks of Non-compliance Under the Posh Law
The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013 (POSH Act) is a critical law that aims to prevent and address sexual harassment in the workplace. Employers who fail to comply with the provisions of the law face significant risks, including legal liability, damage to reputation, and loss of employee trust.
Legal Liability:
Employers who fail to comply with the provisions of the POSH policy can face significant legal liability. If an employee files a complaint of sexual harassment, and the employer is found to be non-compliant with the law, they can be held liable for damages, including compensation to the victim and legal fees. Additionally, non-compliance can lead to criminal charges and penalties.
Damage to Reputation:
Non-compliance with the POSH Act can also lead to significant damage to an employer’s reputation. If an employee files a complaint of sexual harassment, and it becomes public knowledge that the employer failed to comply with the law, it can damage the employer’s reputation among employees, customers, and stakeholders. This can lead to a loss of trust and negatively impact the organisation’s bottom line.
Loss of Employee Trust:
Employees expect their employers to provide a safe and harassment-free workplace. Failure to comply with the POSH Act can lead to a loss of employee trust, as employees may feel that their employer does not take sexual harassment seriously. This can lead to a decrease in employee morale and productivity, and an increase in employee turnover.
Failure to Disclose in the Director’s Report
Failure to disclose can have serious consequences for a company. Here are some of the key risks of non-compliance under the Posh Law:
Legal Consequences: Failure to disclose the establishment of the ICC in the Director’s Report can result in legal action against the organisation. The National Company Law Tribunal (NCLT) has the power to take action against companies that fail to comply with the disclosure requirements under the Companies Act, 2013. Non-compliance with POSH Act requirements can lead to fines, penalties, and legal action.
Reputational Risks: Failure to comply with the POSH Act and disclosure requirements can also damage an organisation’s reputation. Non-compliance can result in negative media coverage, which can impact the organisation’s brand image and relationships with stakeholders, including customers, partners, and investors.
Employee Retention: Non-compliance with the POSH Act can also result in employee dissatisfaction and lead to high employee turnover rates. Failure to create a safe and inclusive workplace can cause employees to lose trust in the organisation and seek employment elsewhere.
Difficulty in Raising Capital: Non-compliance with regulatory requirements can also make it difficult for organisations to raise capital through public offerings or loans. Investors and lenders may be hesitant to invest in or lend money to organisations with a history of non-compliance
Impact on Business Operations: Failure to comply with the POSH Act and disclosure requirements can also impact an organisation’s business operations. Legal action and reputational risks can cause a distraction and take time and resources away from other critical business functions.
Conclusion
It should be noted that the Prevention of Sexual Harassment (POSH) Act is a crucial piece of legislation intended to ensure that women in India have safe workplaces. The act contributes to ensuring that victims of harassment have a secure and encouraging environment in which to disclose misconduct by mandating organisations to set up Internal allegations Committees (ICCs) to investigate and address allegations of sexual harassment. Vakilsearch is dedicated to assisting businesses in navigating the POSH Act’s intricacies and developing inclusive, safe work environments for all employees.
FAQs on POSH Compliance
What is POSH Compliance?
POSH Compliance refers to the measures taken by organisations to ensure compliance with the Prevention of Sexual Harassment (POSH) Act, 2013. It includes the establishment of Internal Complaints Committees (ICC), policy formulation, employee training, and reporting requirements.
Who is responsible for ensuring POSH Compliance?
The management of the organisation is responsible for ensuring POSH Compliance. The responsibility includes the establishment of an ICC, policy formulation, employee training, and reporting requirements.
What is the Internal Complaints Committee (ICC)?
The Internal Complaints Committee (ICC) is a committee established under the POSH Act, responsible for receiving and investigating complaints of sexual harassment at the workplace. The committee should consist of at least four members, including a Presiding Officer, two employees (preferably women), and one external member from an NGO or any other organisation that works on women's rights issues.
What are the reporting requirements under the POSH Act?
Under the POSH Act, all organisations are required to disclose information related to the establishment of the ICC in their Director's Report. Organisations are also required to maintain a register of complaints received and action taken.
What are the consequences of non-compliance with the POSH Act?
Non-compliance with the POSH Act can result in legal action, fines, penalties, and reputational risks for the organisation. Failure to create a safe and inclusive workplace culture can also lead to employee dissatisfaction, high turnover rates, and difficulty in raising capital.
