PoSH for Small Businesses: Do Companies with <10 Employees Need to Comply?

The PoSH Act, 2013, is a comprehensive piece of legislation designed to protect women from sexual harassment at the workplace. Section 2(n) of the Act defines 'workplace' broadly, encompassing any place visited by the employee during the course of employment, including a dwelling place or a house. Crucially, Section 2(o) defines 'employer' as any person responsible for the management, supervision, and control of the workplace. The Act applies to all employers across India, irrespective of the size of the organization or the number of employees, with a specific nuance for smaller entities.

A common point of confusion arises from Section 4 of the PoSH Act, which mandates the constitution of an Internal Committee (IC). This section states that an employer 'shall, by an order in writing, constitute an Internal Committee'. However, the proviso to Section 4(1) states that 'where the appropriate Government or any local authority has not constituted any such Committee, the employer shall, in accordance with the provisions of this Act, do so.' This implies that the mandate for an IC is universal.

The distinction for businesses with fewer than 10 employees primarily lies in the composition and functioning of the IC. While organizations with 10 or more employees are mandated to form a formal Internal Committee with specific representation, the Act still imposes obligations on smaller employers.

Even if your business has fewer than 10 employees, the PoSH Act still imposes significant obligations to prevent and address sexual harassment. The core principle of providing a safe working environment remains paramount.

• Policy Implementation: While a formal IC might not be strictly mandated in the same way as for larger organizations, it is imperative to have a clear, written PoSH policy in place. This policy should define sexual harassment, outline the procedure for complaints, and ensure confidentiality.
• Complaint Redressal: Employers are still obligated to provide a mechanism for addressing complaints of sexual harassment. This could involve designating a senior employee or an external resource to handle grievances.
• Awareness and Training: Educating all employees, including those in smaller teams, about PoSH is vital. This includes understanding what constitutes sexual harassment, the company's policy, and available redressal mechanisms.
• Prohibition of Retaliation: The Act strictly prohibits any form of retaliation against an employee who has filed a complaint or participated in an investigation. This protection must be extended to all employees, regardless of company size.

Section 4(1) of the PoSH Act also states that 'in case of any such organization or institution having operations in more than one location, the Internal Committee shall be constituted for each such location.' For smaller organizations or those with limited internal resources, the Act provides an alternative. Section 6 of the Act mandates the constitution of a Local Complaints Committee (LCC) by the appropriate Government for every district.

An employee of an organization with fewer than 10 employees, or where the employer has not constituted an IC, can file a complaint with the LCC. Therefore, even without a formal internal IC, employees are protected and have recourse through the LCC. However, proactive internal measures are always preferable and demonstrate a commitment to a safe workplace.