(“POSH Act”) As we know that the Ministry of Corporate Affairs (after this referred to as the “MCA”) has issued a notification bearing no. G.S.R. 725(E) dated 31 July 2018 (“the effective date”) wherein the Ministry amended the Companies (Accounts) Rules, 2014 (“Rules”) so as to include a statement in the board’s report on the compliance under the Sexual Harassment Of Women At Workplace (Prevention, Prohibition And Redressal) Act, 2013 (“POSH Act”).

Undoubtedly, a remarkable step towards ensuring the safety of women at workplaces here is glimpses of the notification:

UNDERSTANDING THE NOTIFICATION G.S.R. 725(E) DATED 31 JULY 2018:
Rule 8 of the Companies (Accounts) Regulations, 2014 was amended to include reporting of workplace compliance with POSH rules. The concerns to be included in the Board’s report must now also include “a declaration that the organisation has complied with the requirements of the 2013 Sexual Harassment of Women at Work (Prevention, Prohibition and Redressal) Act concerning the creation of an Internal Complaints Committee.”

APPLICABILITY:
The notification shall apply to all organization except One Person Company or Small Company as defined in Companies Act, 2013. The Sexual Harassment of Women at Job or work (Prevention, Prohibition and Redressal) Act, 2013 extends to any workplace, agency, company or entity with ten or more workers (full-time, part-time, interns or consultants included) regardless of their location or nature of the industry.

According to the POSH Act, any organisation with more than ten employees is required to form an Internal Complaints Commission headed by a “woman presiding officer” along with the development of an abdominal POSH policy for the prevention and redress of workplace sexual harassment.

The word “Sexual Harassment” has been defined under Section 2(n) of the POSH Act so as to mean:
“Sexual Harassment” involves any one or more extra of the following unwelcome acts or behaviour (whether direct or by implication) namely:-
(i). Physical contact and advances; or
(ii) making sexually coloured remarks; or
(iii) showing pornography; or
(iv). A demand or application for sexual favours; or
(v) any other unwelcome physical, verbal or non-verbal conduct of sexual nature;

Every organization on which the POSH Act is applicable shall mandatory required to constitute an Internal Complaints Committee which shall be headed by a “female presiding officer”. The aforesaid organization shall also formulate an internal POSH policy for the prevention and redressal of sexual harassment at workplaces.

A workplace covers both the unorganized and organized sectors.
Workplace includes: –
• including Government company, Government organizations, corporations and cooperative societies;
• The venture, Private sector organizations, society, trust, NGO or service providers etc. providing services which are commercial, vocational, educational, sports, professional, entertainment, industrial, health-related or financial activities, including production, sale, supply, distribution or service;
• Sports Institutes/Facilities; – Hospitals/Nursing Homes; – Places visited by the employee (including while on travel) including transportation provided by the employer;
• A dwelling area or house.
The Act specifies the Unorganized Sector as:
• Any company owned by an individual or self-employed workers engaged in the production or sale of goods or providing services of any kind;
• Any enterprise which employs less than ten workers.

The POSH Act also provides for the training programmes to be carried out by the organization. The POSH Act makes it mandatory for the organization to file an annual report with the notice of the number of sexual harassment complaints collected in a year, the number of complaints influenced of in a year, cases pending for more than 90 days, etc.

COMPOSITION OF INTERNAL COMPLAINTS COMMITTEE:
A. a Presiding officer- A women from a senior level at the workplace;
B. Minimum two members from amongst employees committed to the cause of women/ having legal knowledge/experience in social work;
C. 1 member from amongst NGO/associations committed to the cause of women or a person familiar with the issue of Sexual Harassment.
HOW MSME SUPPLIER CAN RECOVER DELAYED PAYMENT FROM DEFAULTING BUYER
Produced that at least one-half of the total member so nominated shall be women
REPORTING UNDER COMPANIES ACT, 2013
W.e.f. 31st July 2018 it is mandatory all the companies except (Small Company and OPC) to mention in its board Report that it has constituted the Internal Complaint Committee, the details about cases registered, disposed of, i.e., action taken against and other details.
IMPLICATIONS OF NON-COMPLIANCE
In the case of failure to constitute an ICC, non-compliance with POSH may cost an employer a monetary penalty of Rs 50,000, apart from penalties for non-disclosure in the Director’s Report.
In the event that the employer commits a violation under the Act, the employer may face double the penalty or even cancellation/ non-renewal / withdrawal of the registration/license required to carry out business or such activities.

Source:
sexual harassment of women act and rules 2013 PDF
Ministry pdf companies Accounts Rules

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