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Why Should start-ups Must Adhere to the PoSH Policy

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PoSH Policy

Start-ups Must Adhere to the PoSH Policy

When we talk about building a safety culture and POSH compliance, there’s a misconception that it’s just for large companies with a lot of people. In reality, many businesses are unaware that POSH compliance is not only important but also required under the POSH Act.

The POSH Act specifically states that any organization with more than 10 people working for it in any capacity is subject to the Act. The POSH Act applies to your organization if you have ten or more workers who work full-time, part-time, on a contract basis, as interns, volunteers, or third-party suppliers.

Non-compliance with the POSH Act can result in fines of up to INR 50,000 per violation, as well as the loss of business licenses.

Non-compliance with the POSH Act can result in fines of up to INR 50,000 per violation, as well as the loss of business licenses.

One of the most typical misconceptions made by start-ups while developing their business culture is to believe that sexual harassment occurs only in larger firms. If left ignored, a single incidence of sexual harassment may harm the team’s morale and the organization’s reputation. As a startup, you have the opportunity to shape your team’s culture from the bottom up.

Ensuring the safety and security of your team members is one of the finest methods to do so. Your team members are more likely to cherish their relationship with your business if you engage in developing a DNA that prioritizes their well-being.

How can you get started with POSH compliance?

Certain measures must be taken by the employer to become a POSH complaint, as required by the Act.

  • The first step would be to create a zero-tolerance POSH policy inside the business, which spells out the rights and responsibilities of both employees and employers.
  • A POSH policy ensures that the authorities are aware that you are implementing the POSH Act inside your company, as well as informing your team members about the actions you are doing to avoid sexual harassment occurrences. The POSH policy must also include information on the redress mechanism in place and how employees can use it if necessary.
  • In addition to the POSH policy, the organization must establish an Internal Complaints Committee (IC) and designate members of the committee by the Act’s provisions. A well-trained IC can efficiently handle POSH complaints and finish the investigation in a lawful and timely way.
  • The IC is also in charge of filing the Annual Compliance Report with the authorities to verify that the organization’s POSH compliance is comprehensive and accurate.
  • Finally, the organization is accountable for conducting awareness programs and raising POSH legislation awareness among its employees. Conduct, a SaaS platform, can assist lean teams in meeting all of their POSH obligations in a timely and cost-effective manner. Conduct manages your POSH compliance from start to end after all of your workers have been onboarded onto the platform.


Another misunderstanding regarding POSH compliance is that start-ups do not need to comply since sexual harassment is unlikely to occur in smaller businesses. Sexual harassment is a hazard to all companies, and it may occur in any team, large or small.

Every company must take preemptive measures to guarantee that sexual harassment does not occur. If an incident does occur, the organization must have a solid redressal procedure in place to handle the situation. The complaint cannot be dealt with in a legally compliant way unless adequate compliance is in place. This exposes businesses to legal ramifications and a loss of reputation.

Employees who are dissatisfied with their employer’s non-compliance can file a complaint with the court or the NCW, which might result in legal consequences.

As a result, POSH compliance should be a top focus for all businesses, including start-ups, to ensure that they stay legally compliant and foster an “Employee First” safety culture.

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