PoSH Compliance for Startups: A Practical Guide for Founders

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (PoSH Act) mandates employers to create a safe and harassment-free environment for all women employees. It defines sexual harassment broadly, encompassing unwelcome physical, verbal, or non-verbal conduct of a sexual nature. This includes requests for sexual favours, sexually coloured remarks, showing pornography, or any other unwelcome conduct that creates a hostile work environment. The Act applies to all establishments, including startups, irrespective of their size.

Key provisions of the Act include the requirement to formulate a PoSH policy, establish an Internal Committee (IC), and implement a redressal mechanism for complaints. Non-compliance can lead to significant penalties, including fines and license revocation, as outlined in Section 26 of the PoSH Act.

As per Section 4 of the PoSH Act, every employer must constitute an Internal Committee (IC) to address complaints of sexual harassment. For startups, this is a critical step. The IC should comprise:

• At least three members.
• A Presiding Officer who is a woman and employed at a senior level.
• At least two other members, preferably those committed to the cause of women or with experience in social work or legal knowledge.
• One-third of the IC members must be women who are employees of the organisation.
• If the organisation has more than ten employees and has branches in different locations, a Local Committee (LC) needs to be formed at each location, or the IC can be extended to cover these branches.

The IC is responsible for conducting inquiries into complaints, recommending action, and ensuring the confidentiality of the proceedings. The PoSH (Constitution of Internal Committee and manner of holding inquiry) Rules, 2013, provide further details on the IC's functioning.

A well-defined PoSH policy is your startup's proactive defence against sexual harassment. It should clearly:

• Define sexual harassment as per the Act.
• Prohibit sexual harassment in any form.
• Outline the procedure for filing a complaint, including the role of the IC.
• Specify the timelines for inquiry and action.
• Ensure confidentiality and non-retaliation for complainants.
• Include provisions for awareness and training.

The policy must be communicated effectively to all employees, including temporary and contractual staff. Displaying the policy in a visible place and including it in employee handbooks are essential steps. Section 19 of the PoSH Act mandates employers to take measures to prevent sexual harassment.

The PoSH Act mandates a clear and timely redressal mechanism. Once a complaint is received, the IC must initiate an inquiry within seven working days, as stipulated by the PoSH Rules. The inquiry process should be fair and transparent, allowing both the complainant and the respondent to present their case. The IC is required to complete the inquiry within ninety days of receiving the complaint. Following the inquiry, the IC will submit a report to the employer, recommending appropriate action based on the findings. This could include disciplinary actions against the perpetrator, counselling, or other measures deemed fit. Employers must act on these recommendations promptly.

Regular training and awareness sessions are vital to ensure employees are aware of their rights and responsibilities under the PoSH Act. For expert guidance on navigating these complexities and ensuring robust PoSH compliance for your startup, consider consulting with specialists like Embar Legal Advocates.