Throughout history, achieving gender equality has been a challenge, often clouded in uncertainty. Striking a balance and ensuring fairness in a world where men and women work together has been a continuous quest. In India, a society with a long history of patriarchy, these challenges have persisted for generations, sparking ongoing debates about equality.
However, since the 2000s, we have taken significant steps to make workplaces safer and fairer for everyone. One of the big changes is the PoSH Act, short for the Prevention of Sexual Harassment Act of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013. This important law was created to ensure that women feel safe and respected at work.
The PoSH Act
The PoSH Act, or the Prevention of Sexual Harassment Act of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013, is a vital legislation in India addressing workplace sexual harassment. Its primary goal is to protect women’s rights and well-being by ensuring a harassment-free work environment.
About 60% of companies in big cities see PoSH as a vital part of how they do business,
and not just a rule to follow. In comparison, in smaller towns, the compliance rate is
below 50-10%Viji Hari, CEO, CecureUs
Before its implementation, India lacked a specific legal framework for this issue, making it a significant milestone. The act mandates internal complaints committees (ICCs) in organisations with over 10 employees, emphasising prevention and resolution.
It also aligns with India’s commitment to gender equality, fostering an equitable and inclusive workplace. Importantly, the Act establishes a clear procedure for complaints, inquiries and penalties, providing women with a structured path to justice and resolution.
If it is so important and so favourable, then why do companies shy away from it?
How do organisations perceive the PoSH Act?
The way the PoSH Act is perceived differs from organisation to organisation. While some view it as a necessary and crucial step towards creating a safe and inclusive work environment, others may see it as an added regulatory burden or just a precautionary step.
The Act’s perception often depends on factors such as the organisation’s commitment to gender equality, its awareness of the Act’s provisions, and its willingness to proactively address sexual harassment issues. Ultimately, organisations that embrace the Act tend to prioritise the well-being of their employees and promote a more equitable workplace.
According to Viji Hari, CEO, CecureUS, “In big cities such as Mumbai, Delhi, Bangalore, and Chennai, companies take the rules about preventing sexual harassment seriously. About 60 percent of them see it as a vital part of how they do business, and not just a rule to follow. In smaller towns, however, many companies don’t pay as much attention to these rules, often considering them a mere formality. So, there’s a difference in how companies in big cities and smaller towns follow these rules.”
She further adds that in smaller towns, the compliance rate is significantly low, often below five or 10 per cent. Private corporations and institutions, including hospitals, show lower compliance levels compared to larger corporate entities.
Some smaller companies, particularly those working closely with MNCs and global businesses, recognise the importance of PoSH compliance. On the other hand, family-owned businesses, often smaller in size, may resist implementing POSH compliance.
They may perceive it as opening a Pandora’s box, introducing a concept that could disrupt the status quo. This diversity in attitudes may be influenced by the nature of the clients and the industries these companies operate in.
“The adoption of PoSH compliances in organisations is heavily influenced by their culture. The way organisations perceive and value these compliances is crucial.”
Smita C Kapoor, CEO and co-founder, Kelp HR, states
Smita C Kapoor, CEO and co- founder, Kelp HR, strongly believes that adoption of POSH compliances in organisations is heavily influenced by their culture. “The way the organisations perceive and value these compliances is crucial.” “Some organisations embrace POSH compliance as a genuine commitment, driven by a belief in its importance and a desire to create a respectful work environment. However, there are those who
treat it merely as a checkbox for compliance. The organisation’s culture and leadership play a significant role in determining it’s approach to POSH compliance,” explains Kapoor.
Speaking about the current status of POSH compliance, Kapoor feels that it is worth mentioning, looking back at the history. “The POSH guidelines were outlined in 1997, but many remained unaware of their existence until much later. For instance, I personally became aware of them in 2008, when they began to be integrated into our curriculum at the academy. Since then, the compliance efforts of organisations have been varied. Some have been proactive and fully compliant, while others have either ignored the guidelines or treated them as mere formalities.”
Roadblocks to embracing the PoSH Act
The biggest deterrent for companies to embrace PoSH compliances is a desire to sweep issues under the rug, to ignore them, or to avoid acknowledging their existence. This mindset tends to lead to the misconception that if complaints aren’t filed, there’s no need to comply. Additionally, some companies may lack trust in their management or fear that addressing such issues will disrupt their operations.
Shailesh Singh, CHRO, Max Life Insurance, shares that larger and more established companies appear to have embraced and implemented these regulations to a greater extent, while smaller and newer companies lag behind. He points out several factors that contribute to this situation.
“First and foremost, there is a significant lack of awareness among corporate leaders, especially in midsize and newer companies. Many are unaware of the existence of the 2013 Act, and this lack of awareness is a significant hurdle.”
“By handling the initial case with the utmost care and transparency, the company sets a significant precedent. When employees witness a tangible example of a complaint being
addressed effectively, it can serve as a powerful motivator for others to feel confident
about speaking up.”Bhuvaneswar Naik, CHRO, Lentra
He further compares India to the global stage. Awareness of women’s diversity rights is notably lower in India than in the West. This extends to the corporate sector, where many individuals take these principles for granted and may not have deeply ingrained values regarding diversity and women’s empowerment. This lack of conviction contributes to the low of PoSH compliance.
Another significant hurdle is the comprehensive nature of the PoSH Act itself. It requires organisations to establish committees with powers akin to those of civil courts to gather evidence and follow a specific, detailed process for investigations. This process can be cumbersome and resource-intensive for companies.
According to Preeti Jain, VP-HR, Airtel, when we consider mid-sized and smaller offices, there is still work to be done. Some of these companies may face challenges, perhaps due to resource limitations or the absence of in-house training facilities.
Singh further mentions, “The Act mandates the formation of committees for locations with ten or more women employees, specifying their tenure, composition and procedures. Once an investigation is initiated, the corporate entity has limited influence over the committee’s final decisions, as these committees wield considerable legal authority. While management can present their perspective, they must navigate this delicate balance between running an independent company and respecting the committee’s autonomy. Many organisations find this aspect challenging.”
PoSH fosters empowerment and saves costs
Kapoor observes that organisations that proactively involve their employees in awareness sessions have observed a notable decline in harassment cases over time, even though they may not have completely eliminated such incidents.
By engaging employees in these awareness sessions, organisations empower their workforce to become active contributors to a safer and more respectful workplace environment. These sessions serve as platforms for open dialogue where employees can share their concerns, experiences and insights related to harassment. This not only helps identify potential issues but also fosters a sense of ownership and responsibility among employees to maintain a harassment-free workplace.
Bhuvaneswar Naik, CHRO, Lentra, points out that it is crucial to emphasise the significant financial implications associated with employee turnover. “Replacing an employee can be a costly endeavour, involving not just the recruitment process but also the time and resources invested in training a new hire.”
“There is a significant lack of awareness among corporate leaders, especially in midsize and
newer companies. Many are unaware of the existence of the 2013 Act, and this lack of awareness is a significant hurdle.”SHAILESH SINGH, sr. director & CPO, Max life insurance
When a company takes proactive steps to prevent harassment and creates an inclusive, respectful workplace, it not only retains its existing talent but also avoids the substantial expenses linked to employee replacement.
These cost savings go beyond monetary considerations. They extend to the preservation of institutional knowledge and expertise. When experienced employees stay, they continue to contribute their skills and knowledge to the organisation, maintaining continuity and stability.
Overlooking the PoSH Act: Risks and missed opportunities for companies
Companies that choose not to implement PoSH compliance measures may unintentionally miss out on several valuable benefits. Overlooking the PoSH Act can result in substantial risks and missed opportunities for organisations.
Neglecting the issue of workplace sexual harassment not only puts employee well-being in jeopardy but also leaves companies vulnerable to legal and reputational challenges.
The PoSH Act offers several compelling advantages for organisations. First, it can help cultivate a safer and more harmonious workplace culture, ultimately contributing to the overall well-being of employees. A work environment free from harassment fosters greater job satisfaction and productivity, enhancing the quality of life for staff members.
Most importantly, prevention through compliance with the Act is significantly more cost-effective than dealing with the aftermath of harassment complaints and the subsequent redressal procedures. By proactively implementing preventive measures, companies can save both time and resources.
Additionally, adherence to the PoSH Act can safeguard a company’s brand and reputation.Public perception of a business is closely linked to its commitment to providing a safe and respectful workplace. Complying with the Act can mitigate the risk of reputational damage and potential legal consequences, preserving the company’s standing in the eyes of customers, investors and partners.
Addressing workplace harassment can lead to lower attrition rates. When employees feel protected and valued, they are less likely to leave their jobs due to a hostile work environment. This retention of valuable talent not only ensures continuity but also saves recruitment and training costs, making it a strategic advantage for any organisation.
Embracing the PoSH Act is not just a legal obligation but a proactive approach that can yield numerous benefits — from improved workplace culture to financial savings and reputation preservation.
Hesitation because of misuse!
One common and major reason for hesitation in implementing the PoSH Act is concern over potential misuse. Some organisations may worry that false accusations or misuse of the Act’s provisions can lead to unwarranted consequences for employees or damage to their reputation.
The PoSH Act, like any legal framework, has the potential for misuse in certain situations. Here are a few scenarios in which it can be misused:
False accusations: One of the primary concerns is false accusations of sexual harassment. An employee may make a baseless claim against a colleague or superior for personal gain, revenge, or simply to tarnish someone’s reputation.
Malicious intent: Individuals with malicious intent may misuse the Act to target someone they have personal grievances against, using it as a tool for harassment themselves.
“There is a growing expectation for companies to have PoSH compliance measures in place to address any issues that may arise. Raising concerns is not seen as a challenge anymore, as awareness and acceptance of one’s rights have become more prevalent.”
Preeti Jain, VP-HR, Airtel
Unfounded complaints: In some cases, employees may misinterpret normal workplace interactions or misunderstand situations, leading to unfounded complaints filed under the Act.
Retaliation: An employee who has faced disciplinary actions or negative feedback may file a harassment complaint in retaliation, even if the complaint is not genuine.
Influence over decisions: There is also the potential for misuse by those in positions of power who could use the Act to exert influence over colleagues or subordinates.
Hari strongly believes that while concerns about misuse are valid, it’s important to note that the majority of cases are not malicious. She observes, “In most instances, employees who come forward have genuine concerns. Stereotyping the entire process based on a small number of malicious complaints is not accurate.”
To effectively address the risk of misuse, organisations should take proactive steps. They can establish a foundation of clear policies, provide comprehensive employee training and establish a strong ICC dedicated to diligently investigating complaints. Timely and impartial investigations are key to upholding the Act’s intended purpose while minimising the possibility of misuse.
Educate, sensitise, train and then implement
Organisations that have prioritised training, awareness and a strong commitment to the spirit of the law have seen positive results.
One crucial approach involves giving priority to the very first employee who comes forward with a complaint. Naik opines, “By handling this initial case with the utmost care and transparency, the company sets a significant precedent. When employees witness a tangible example of a complaint being addressed effectively, it can serve as a powerful motivator for others to feel confident about speaking up.”
Moreover, conducting live sessions and practical demonstrations can play a pivotal role in reinforcing the desired cultural change. These interactive sessions provide a platform for open discussions, real-life scenarios and hands- on learning, making the new culture more relatable and understandable to the workforce. Furthermore, involving employees in discussions about harassment and safety builds trust between the workforce and the organisation. It sends a clear message that the company values its employees’ well-being and actively seeks their input in shaping a more inclusive and secure workplace. This collaborative approach not only aligns with the spirit of the PoSH Act but also contributes to a positive and cohesive work culture where everyone feels respected and protected.
Hari shares, “In some cases, over the past six to seven years, organisations that have actively engaged employees in awareness sessions have reported a significant reduction in harassment cases. While not at zero, these organisations have seen a notable improvement in their workplace culture. Another positive outcome is the shift from a top-down approach to one where employees are actively engaged in discussions about harassment and safety. This collaborative approach has yielded positive results, with employees feeling more empowered and valued.”
Creating a culture of sensitivity and respect requires a multi-faceted approach that includes not only addressing complaints but also actively demonstrating the desired behaviour through real-world examples and engaging employee interactions.
Why is the PoSH Act a must?
In the long run, absence of PoSH compliance can be detrimental to companies. Jain believes, “Nowadays, people, especially the younger generation, are increasingly aware of the type of workplace environment they should expect. They understand their rights and the need for a safe and inclusive environment for all genders.”
She further emphasises that there is a growing expectation for companies to have PoSH compliance measures in place to address any issues that may arise. Raising concerns is not seen as a challenge anymore, as awareness and acceptance of one’s rights have become more prevalent.
The PoSH Act doesn’t stop at legal mandates; it promotes awareness and sensitisation programmes within organisations. These initiatives aim to educate employees about what constitutes sexual harassment and the repercussions of such behaviour. Through these efforts, the Act strives to cultivate a culture of respect and dignity in workplaces.
To further reinforce the importance of compliance, the Act specifies legal consequences for organisations that fail to adhere to its provisions. Penalties can include fines and even imprisonment, acting as a discouragement to employers who may be inclined to overlook sexual-harassment issues.
Organisations should concentrate on fostering a workplace culture where legitimate concerns can be reported without fear of adverse consequences. This entails nurturing open communication channels, cultivating trust between employees and management and ensuring that the entire process is conducted with fairness and impartiality at its core. By doing so, companies can not only comply with the PoSH Act but also create a more respectful and supportive environment for all their employees.