Is POSH Applicable to Small Companies and Startups?

Startups and small businesses are usually small in terms of employees hired. They are flat organisations where everyone needs to play multiple roles, and formal systems are not always in place. However, in matters concerning workplace safety, particularly the Workplace Harassment Act 2013, no exceptions are made.

 

Do Small Companies Need to Follow the POSH Act?

 

The law extends to all workplaces in India, without any exceptions based on:

●       Team sizes

●       Revenue

●       Business stage

You may run a startup with a limited number of employees. But, under the POSH Act, you are responsible for creating a safe working environment where no sexual harassment takes place and building a community where a victim can take a stand against the harasser.

 

What If a Company Has Fewer Than 10 Employees?

 

POSH Act applies to your organisation even if you have less than 10 employees. In this case, your company cannot form an Internal Committee. However, with the help of the district authority, you will have a Local Committee and will follow the standard compliance issues to have a POSH policy in place. In short, having fewer employees does not exempt a company from POSH laws. The only difference is that smaller teams will have to go through a slightly different process.

 

What Happens as Your Startup Team Grows?

If you have 10 or more employees, you will have to be compliant with the following:

●       Form an IC.

●       Appoint a Presiding Officer, who has to be a senior woman employee.

●       Appoint an external member who is aware of issues pertaining to workplace harassment.

●       Communicate the POSH policy to your employees.

These requirements apply to startups at any stage.

 

 

Some small business founders tend to think that because they are tight-knit organisations, they don’t need formal systems in place. However, this is actually risky.

Here are some reasons why it’s important to comply with the workplace harassment act:

1.    Legal Protection

Non-compliance can lead to penalties, legal action, and reputational damage.

2.    Safe Work Culture

Having a POSH policy in place helps build trust among employees.

3.    Early Conflict Resolution

Having a system in place helps to resolve conflicts early.

 

Role of a Work Harassment Lawyer

Most small businesses are unsure of how to properly comply with the workplace harassment act. This is where a work harassment lawyer can step in to assist.

A lawyer can assist with:

●       Drafting a legally sound POSH policy

●       Setting up the Internal Committee

●       Training employees and management

●       Guiding the company with complaint resolution

Having a lawyer assist can save a lot of costly mistakes later.

 

What Should a POSH Policy Include?

A good POSH policy should address the following:

●       What constitutes workplace harassment?

●       How to file a complaint?

●       The process of investigation.

●       The timeline for resolution.

●       Guidelines for maintaining confidentiality.

It should be simple and easy to understand, and be provided to every employee.

 

Common Mistakes Small Companies Make

Believing that the workplace harassment act is not applicable to their company.

●       The absence of a written POSH policy.

●       Not taking informal complaints seriously.

●       The delay in setting up the Internal Committee.

All these result in serious problems.

 

Final Thoughts

The workplace harassment act is for the protection of every employee in every kind of company. It is not limited to large corporations. Every company, whether a startup or a small business, is equally liable for ensuring that the work environment is safe for its employees.

Creating a proper POSH policy and consulting a work harassment lawyer will go a long way in creating a responsible work environment that is legally sound.