Legal Benefits of a Robust PoSH Policy for Your Company

Beyond operational and financial success, every organisation has a responsibility to create a workplace that is safe and compliant with the law.  The PoSH Act, 2013 mandates organisations to have sexual harassment prevention policies and well-defined redressal mechanisms. In addition to fulfilling your legal requirements, having a PoSH policy fosters trust at work.

In this article, we will discuss the advantages of having an effective PoSH policy for your business. The key components of PoSH policy and the consequences of non-compliance with the PoSH policy will also be covered.

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 mandates that employers take responsibility for preventing and addressing sexual harassment at work. Every workplace in India is subject to this regulation, regardless of its size, structure, or sector. Despite the fact that all employers must follow the law, only companies with 10 or more employees must set up an Internal Complaints Committee (ICC) or Internal Committee (IC) to receive and handle complaints of sexual harassment.

Legal Consequences of Non-Compliance

The absence of a PoSH policy in the company can have consequences, few are as mentioned below:

• Monetary penalties of up to ₹50,000 and double for repeated offenses.
• Under relevant sections, non-compliance with the law can lead to civil or criminal proceedings.
• The business might experience negative/bad press, a decline in trust, and harm to its reputation.
• Continued violations may lead to the cancellation of business licenses.

Because of these risks investing in proactive PoSH training and compliance becomes essential. These trainings help employers create a safe and inclusive work environment.

1. Clearly Defined Scope and Terminologies

The first section of the company’s PoSH policy should specify clear definitions of what constitutes sexual harassment and where it may occur. This includes inappropriate online behavior, verbal comments, visual displays, and unwanted physical contact. Additionally, the policy should state that the workplace includes digital communication mediums, off-site events, travel, and offices as well as home offices. Furthermore, it must safeguard all women working or otherwise connected with the organisation, such as employees, interns, consultants, and third-party employees.

2. Detailed Complaint and Redressal Mechanism

In order to encourage reporting, a workplace sexual harassment policy must put the privacy of complainants and their protection from reprisals, first. A clear, tiered complaint system that outlines the inquiry process, filing methods, and resolution dates should be part of the policy. To avoid ambiguities, the policy should specify the responsibilities of the External Member and the IC/ICC.

3. Mandatory Training and Awareness

Employee awareness of their rights and obligations is essential for a PoSH policy to be effective in the workplace. Regular PoSH training sessions for employees and specialised training for ICC/IC members can help achieve this. According to the PoSH Act, these trainings are obligatory in order to increase awareness and give ICC/IC members the skills they need to properly address complaints. 

4. Periodic Reviews and Policy Updates

The workplace policy on sexual harassment prevention should be reviewed on a regular basis to ensure its effectiveness. The effectiveness of the policy and potential areas for development can be assessed through yearly audits. The policy ought to be updated to reflect amendments in the law. To further guarantee transparency and compliance, accurate records of the orders that comprise ICC, awareness posters, complaints, measures taken, and their outcomes are essential.

5. Gender-neutral Approach

Organisations should have a gender-neutral approach in their PoSH policy, even if the PoSH Act 2013 focuses on safeguarding women against sexual harassment in the workplace. The organisation’s Code of Conduct or disciplinary committee should consider complaints from male employees about sexual harassment, even though the Internal Committee (ICC/IC) handles complaints under the PoSH Act.

1. Gap: Lack of or Inefficient ICC/IC

The majority of enterprises either fail to set up ICC/IC or form them incorrectly (non-compliance with legal requirements).

Prevented by: The presence of a properly designed sexual harassment policy in organisations ensures that the committee follows legal requirements, are trained, and their roles are defined clearly. 

2. Gap: Redressal of Complaints in an Informal Manner

Handling complaints casually or beyond official procedure as mandated by the PoSH Act, undermines the severity of the sexual harassment case and leads to legal problems.

Prevented by: A robust corporate sexual harassment policy, which has a step-by-step formal redressal process that helps to gain the trust of employees and is legally valid.

3. Gap: Lack of Awareness and Training

Employees will fail to report sexual harassment because they don’t know what constitutes misconduct or how to act.

Prevented by: Recurring PoSH training increases awareness, makes reporting lines clear and inculcates a culture of safety and responsibility.

4. Gap: Inadequate Reporting and Documentation

Failure to file annual reports or case records can result in penalties and reputational damage.

Prevented by: A good PoSH policy at the workplace has mechanisms for regular reporting, and experts are assigned to oversee compliance.

A productive and healthy workplace is the benefit of an effective PoSH policy. The following are a few additional advantages of complete compliance:

1. Lowers Legal Risks and Actions

Your company can reduce legal risks like fines, litigation, and regulatory scrutiny by adhering to the mandates of the PoSH Act. By keeping a recorded policy document, with prompt and timely training records, and effective reporting, you may show that your organisation has taken all reasonable precautions to prevent sexual harassment in the workplace.

2. Creates a Respectful and Safe Workplace Environment

An organisation with a strong PoSH policy inculcates a culture that values respect and dignity. Employees who feel safer and more supported are more productive, experience less stress, and collaborate better as a team.

3. Improves Employer Reputation

Businesses that put worker safety first are viewed as forward-thinking and accountable employers. Such organisations are seen more favourably by clients, partners, and prospective employees. They ultimately join and contribute to the development of long-term trust and improve brand value.

4. Enhances Morale and Employee Retention

Employee trust is earned by an organisation that takes sexual harassment seriously and resolves complaints in a timely manner. Knowing that the company has a strong policy in place to avoid sexual harassment at work might be crucial for women in particular when determining whether to stick around and advance within the organisation.

5. Exhibits Due Diligence in Conflict Situations

Having a well-defined corporate sexual harassment policy, a trained Internal Committee (IC), and documentation of PoSH training for staff members can all be legible pieces of evidence in the event of a disagreement or legal challenge. It demonstrates that the company has complied with its legal duties, which may influence court decisions in its favour.

6. Promotes Early Resolution

Because there is an open and reliable grievance mechanism, employees are more likely to report concerns before they worsen. A clear redressal process fosters employee trust and enables prompt action.

Conclusion

More than just a legal requirement, a strong PoSH policy is essential to creating a productive, fair, and respectful workplace. Through proactive implementation and upkeep of a robust PoSH framework, your business protects itself from legal risks, cultivates a culture of trust, and improves its reputation. 

Setting PoSH compliance as a top priority has real advantages, such as better staff retention, higher employee morale, and a safer workplace for all. In the end, investing in a thorough PoSH policy is an investment in your company’s most precious resource: its employees. 

Are you prepared to make your workplace an example of inclusivity and safety? For professional assistance and direction catered to your unique requirements, get in touch with us today.