Everything You Need to Know About POSH Compliance
Having safe workplaces for women has always been a serious concern. Corporate entities must provide a suitable work environment for women. Harassment in the workplace could be anything, from inappropriate touch to a gesture. To counter the harassment of women in the workplace, the Indian government came up with the POSH Act. It is also referred to as the Sexual Harassment of Women in the workplace in the industry. The act has rightly forced corporate entities to take some measures to stop the harassment of women. POSH compliance is compulsory for corporate entities. Let us learn more about it in detail.
The History of the POSH Act
Harassment of women in the workplace has been a historical issue in India. When the cases of workplace harassment increased, the government came up with the POSH Act in 2013. It forced companies to listen to women’s grievances and take appropriate actions. Many cases and committees in the past paved the way for the inauguration of the POSH Act in India. The Vishaka vs. Rajasthan State case of 1997 is credited the most for the inauguration of the POSH Act. When the act was launched in 2013, the government came up with a list of guidelines for the companies. All POSH rules were made compulsory for companies across the country. As of now, every company has a POSH policy and processes to meet compliance requirements. Corporate entities ignoring the POSH rules often end up paying fines to the government.
Compliance Requirements of the POSH Act
The requirements under the POSH Act must be fulfilled at any cost. The compliance requirements for corporate entities regarding the POSH Act are as follows:
- The employer must spread awareness within the organization to prevent workplace harassment. Women in the company should know about the POSH policy of the company. Every employee must know the company takes harassment cases seriously.
- Every corporate entity must have a documented POSH policy. In addition, the POSH policy of the company must be circulated among the employees, directors, and shareholders.
- A company with more than ten employees has to form an ICC (Internal Complaints Committee) for POSH compliance. The committee is responsible for receiving harassment complaints from women within the company. The committee must have a minimum of three participants, with at least one woman employee as a member. Companies with less than ten employees are required to form an LCC (Local Complaints Committee).
- At the end of a business year, the ICC must submit an annual report to the concerned authorities. It includes all the harassment cases and their verdicts/investigations within a year.
- The employment contract of a corporate entity must reflect its POSH policy. It is a legal obligation for corporate entities when designing contracts for employees.
How to follow POSH rules effectively?
POSH compliance might be a complex task for corporate entities. They can always seek external support to maintain compliance with the POSH Act. A CA firm might have expert individuals to help you form a POSH policy.
Having an effective POSH policy for your company is a necessity. POSH compliance is the responsibility of every law-abiding organization. Creating a safe and respectful environment for the employees is an important duty of the company.
