The Prevention of Sexual Harassment (POSH) Act, 2013 mandates that organizations with 10 or more employees implement measures to prevent and address sexual harassment. For small businesses and startups (10–100 employees), compliance is essential for legal adherence and fostering an inclusive work culture.
Key Provisions of the POSH Act
Applicability & Scope: Applies across all sectors. Protects women in the workplace but can be extended to all genders.
Internal Committee (IC): Required for organizations with 10+ employees to handle complaints.
- Composition: Minimum four members, ≥50% women, including a senior woman Presiding Officer, two employee members, and one external expert.
- Tenure: 3-year term; renew or reconstitute every three years.
- Locations: Separate IC per office/branch with 10+ employees.
Local Committee (LC): For organizations with fewer than 10 employees, complaints are referred to a government-appointed LC.
Employer Duties
- POSH Policy & Awareness: Draft and disseminate a policy outlining definitions, complaint procedures, and consequences for misconduct.
- Workshops & Training: Conduct regular sensitization programs for all employees and specialized training for IC members.
- Safe Environment: Prevent harassment, provide interim relief during investigations, and ensure non-retaliation.
- Assist Complaints: Support filing of police complaints and forward IPC-related cases.
- Confidentiality: Maintain strict confidentiality, with penalties for breaches.
- Disciplinary Action: Implement IC recommendations within 60 days of inquiry report.
Complaint & Inquiry Process
Complaints must be filed in writing within 3 months of the incident (extendable). IC completes inquiry in 90 days, delivers report in 10 days, and employer acts in 60 days.
Reporting & Record-Keeping
Annual IC Report
Submit a yearly report to the District Officer detailing complaints received, resolved, pending cases, and trainings conducted.
Board Report Disclosure
Include POSH compliance declaration and relevant data in the Board of Directors’ Report under the Companies Act.
Penalties
Fines up to INR 50,000 for non-compliance, plus potential Companies Act penalties (up to INR 3 lakh).
Best Practices for Compliance
- Leadership Commitment: Publicly endorse policies to build a respectful culture.
- Empower IC Members: Provide training and authority for impartial handling.
- Safe Reporting: Ensure confidentiality and protect against retaliation.
- Regular Review: Update policies and practices to reflect legal changes and organizational learnings.