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CONSEQUENCES OF NON-COMPLIANCE UNDER POSH

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Published On: | Administrator

If you are an employer running an organization (public/private) with an employee strength of 10 or more members and has been informed of a situation of sexual harassment faced by one of your woman employees at your workplace, it is time for you to act!

The Indian laws enacted after the landmark judgment of Vishaka case requires every employer under Section 19(a) to provide a safe working environment at workplace which shall include safety from the persons coming into contact at the workplace.

IF NOT and in case you forget to non-comply with the requirements under the POSH law as an employer, you will be liable for a fine amounting to Rs.50,000/. Furthermore, in case of a subsequent conviction, the imposed penalty would be twice the amount imposed earlier. Apart from the monetary cost that would be imposed, if the case is taken before the courts, it can even lead to cancellation/withdrawal/non-renewal of license to do the business.

Above all, the reputation and goodwill of your organization will take a huge hit and eventually loses credibility in the eyes of the public.

How To Ensure That You Are On The Safe Side?

As an employer, non-compliance of the following duties in your organization to ensure the safety of your female employees can land you in great trouble:

  • Failure to constitute Internal Committee (earlier known as Internal Complaints Committee);

  • Failure to act upon recommendations of the Internal Committee;

  • Failure to file Annual Report with the District Officer in their district when required;

  • Contravening/Attempting to contravene/Abetting contravention of the 2013 Act or Rules.

Recently in 2014, the Ministry of Corporate Affairs has amended the Companies (Accounts) Rules, 2014 making it mandatory to include statement in the Director’s Report regarding the compliance and implementation of the provisions of POSH laws. The details regarding the constitution of Internal Committee are also required to be disclosed in the Annual Report in the default of which, fine amounting to even Rupees 25 Lakhs for the company and up to Rupees 5 lakhs or imprisonment for a period of 3 years or both for the officer in default.

Other Requirements

In addition to the above, the employer should ensure that adequate training is provided to the employees to create the following:

  • awareness amongst employees about the POSH policy;

  • redressal mechanism;

  • consequences of sexual harassment;

  • display of details of Internal Committee members in conspicuous places.

This can be implemented through making eye-catching notices and posters which can be made accessible to employees by displaying it on a notice board or the respective websites of the organization. Active investments can be even made to ensure proper training of the members (non-legal) of Internal Committee through case studies and mock trials.

Conclusion

With the increasing account of atrocities committed against women at every sphere, POSH laws strive to give voice to their concerns and to redress their grievances before the appropriate authority.

We, at Best Legal Services are here to help and guide you in complying with the requirements of POSH laws saving your valuable time from the cumbersome process, ensuring a healthy work culture.

Contact us today by visiting our website - bestlegalservices.in