Ensure compliance with the Prevention of Sexual Harassment (POSH) Act, 2013 as a startup. Learn about the importance of formulating a Posh Policy at Vakilsearch.
Start-Ups Posh Policy
Sexual harassment in the workplace is a pervasive issue that can have severe consequences for both the employees and the business. In India, the Prevention of Sexual Harassment (POSH) Act was enacted to protect employees from sexual harassment in the workplace. The act applies to all organisations, including start-ups, and it is essential for these businesses to have a Posh policy in place to ensure compliance with the law and create a safe and respectful work environment.
Why is POSH Compliance Important for Start-ups?
Legal Requirement: It is mandatory for organisations with more than 10 employees to set up an Internal Complaints Committee (ICC) and adhere to the POSH Policy.
Reputation Management: A company that fails to take action against sexual harassment can damage its reputation and affect its brand value. In today’s social media-driven world, negative publicity can spread quickly and lead to a loss of customers, investors, and employees.
Employee Retention: A safe and inclusive workplace is crucial for employee retention. By implementing a POSH Policy, start-ups can create a culture of respect and prevent the loss of valuable employees.
Employee Productivity: A positive work environment leads to increased employee productivity, which is essential for the growth of a start-up.
How Can You Get Started With Posh Compliance?
Form an Internal Complaints Committee (ICC): Under the Posh Act, all organisations are required to have an ICC in place to receive and investigate complaints of sexual harassment. Start-ups can start by forming an ICC consisting 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.
Develop a Posh Policy: A Posh policy is a crucial component of Posh compliance as it provides a framework for identifying and reporting instances of sexual harassment and outlines the steps that will be taken to investigate and address complaints. Start-ups can develop a policy that is tailored to their specific needs and culture, keeping in mind the guidelines provided by the Posh Act and rules.
Conduct Training: Once the policy is in place, all employees should undergo appropriate training to understand the provisions of the policy, how to recognise and report instances of sexual harassment, and their rights and responsibilities as employees. Start-ups can conduct training sessions that are interactive and engaging, and ensure that all employees are aware of the policy and encouraged to report any instances of sexual harassment.
Publicize the Policy: The policy should be publicised widely among employees, including through notice boards, emails, and training sessions. All employees should be made aware of the policy and encouraged to report any instances of sexual harassment.
Ensure Compliance: Start-ups should ensure that they are compliant with all the provisions of the Posh Act and rules, including the mandatory annual reporting requirements. It is essential to monitor compliance and make any necessary changes to the policy and procedures to ensure continued effectiveness.
7 Steps Towards Posh Compliance for an Early-Stage Business
Create a POSH Policy: Start-ups must create a POSH Policy that outlines the company’s stand on sexual harassment and the steps it will take to prevent and address it. The policy should be easily accessible to all employees.
Form an Internal Complaints Committee (ICC): The ICC is responsible for receiving and investigating complaints of sexual harassment. Start-ups must ensure that the ICC consists of at least four members, including a Presiding Officer, two employees (preferably women), and one external member from an NGO or any other organization that works on women’s rights issues.
Conduct Training: Once the policy is in place, all employees must undergo appropriate training to understand the provisions of the policy, how to recognize and report instances of sexual harassment, and their rights and responsibilities as employees. The training should also cover the role and responsibilities of the ICC.
Create Awareness: Start-ups must create awareness about the POSH Policy among all employees, including through notice boards, emails, and training sessions. All employees should be made aware of the policy and encouraged to report any instances of sexual harassment.
Conduct an Internal Audit: Start-ups should conduct an internal audit to ensure compliance with the POSH Policy. The audit should cover aspects such as the constitution and functioning of the ICC, the number of complaints received and addressed, and the training provided to employees.
Create a Grievance Redressal Mechanism: Start-ups must create a grievance redressal mechanism that enables employees to report instances of sexual harassment without fear of retaliation. The mechanism should be simple, confidential, and easily accessible.
Review and Update the Policy: Start-ups must review and update the POSH Policy regularly to ensure that it remains relevant and effective. The policy should be updated based on feedback from employees, changes in the organization’s structure, and new laws or regulations.
FAQs on Start-Ups Adhering to POSH Policy:
What is POSH compliance?
Posh Compliance is the term used to describe the execution of policies and practises required by the Prevention of Sexual Harassment (POSH) Act to prevent and treat sexual harassment in the workplace.
Is POSH compliance required for new businesses?
Yes, Posh Compliance is required for any businesses with 10 or more employees, even startups.
What are the repercussions of not complying?
Posh regulations must be followed in order to avoid legal action, penalties, and reputational harm to the business.
How can startups guarantee adherence to Posh rules?
The Internal Complaint Committee (ICC), a sexual harassment policy, employee training, investigations, and publicising the policy are all steps startups can take to ensure compliance.
What actions should startups do in response to a sexual harassment complaint?
Startups should receive the complaint, conduct an investigation, and take appropriate action based on the findings of the investigation.
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