Very encouraged to see that now a days Companies are more sensible towards compliance qua POSH, as we know The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013 (POSH Act) was introduced with the aim to provide a secure working environment for women. On various occasion, I have been requested to highlight POSH compliances qua Private Limited Companies (Companies), some of the key highlights that immediately came to my mind, which definitely encourages any sensible companies to not only having sound knowledge of POSH but to comply with POSH in true letter and spirt due to following reasons:
As per the request made by Ministry of Women and Child Welfare, the Ministry of Corporate Affairs, vide Notification dated July 31, 2018, already amended the Companies (Accounts) Rules 2014, in turn ensuring POSH compliance, relevant portion as follows:
“In the Companies (Accounts) Rules, 2014, in rule 8, (i) In sub-rule (5), after clause (viii) the following clauses shall be inserted, namely: –
(x) a statement that the company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 [14 of 2013],”;
Please Note: certain exception was also provided; however, these exceptions are qua reporting in Director’s report alone under Companies Act. Thus, for those Companies which are under obligations as per above reporting provisions, must also ensure the truthfulness and effectiveness of their reporting under Directors reports, as any wrongful statement may attract penalties as per Section 134 of Companies Act 2013. So, compliance to POSH is even aided by Companies Act.
Beside above, certain stringent penalties are already provided under clause 26 in the POSH itself which are:
- punishable with fine which may extend to fifty thousand rupees.
- If any employer, after having been previously convicted of an offence punishable under this Act subsequently commits and is convicted of the same offence, he shall be liable to— (i) twice the punishment, which might have been imposed on a first conviction, subject to the punishment being maximum provided for the same offence; (ii) cancellation, of his licence or withdrawal, or non-renewal, or approval, or cancellation of the registration, as the case may be, by the Government or local authority required for carrying on his business or activity.
Conclusion
Apparently as good practice as well as mandated under the law robust implementation and execution, of POSH is must and this could only be ensured through review of POSH compliances as well as conducting periodic trainings.
