Understanding the POSH Policy and Its Application

The Prevention of Sexual Harassment (POSH) policy in India focuses on ensuring a safe and inclusive work environment. However, the application of this policy to third parties and contractors has often been a subject of debate. Unlike many other policies, the POSH framework is primarily designed for employees with a direct relationship with the organization. Nevertheless, under certain circumstances, third parties and contractors can file complaints.

Complaints Filing by Third Parties and Contractors

According to the POSH policy, a third party or contractor generally does not have the right to file a complaint directly. The policy is primarily applicable to employees and individuals who have a direct relationship with the organization. However, if a third party or contractor experiences sexual harassment within the premises of the organization, they are encouraged to report the incident to the Internal Complaints Committee (ICC) of the organization. The ICC can then take cognizance of the complaint and conduct an investigation into the matter.

Clarifying the Definition of an “Aggrieved Woman”

Under the Sexual Harassment of Women at Workplace Prevention, Prohibition and Redressal Act (2013), an aggrieved woman is defined as someone who can file a complaint of sexual harassment in the workplace. It is crucial to recognize that the term “woman” does not necessarily mean an employee. A woman visiting the office or workplace for any purpose may also file a complaint. This clarification aims to ensure that everyone is protected under the POSH policy regardless of their employment status.

Settling Disputes between Third Parties and Contractors

While the POSH policy is designed to protect employees, the core issue of complaints from third parties and contractors often revolves around the dispute resolution process. Some argue that the principal employer should not be involved in mediating disputes between contractors and third parties. However, the responsibility lies within the organization where the incident takes place, whether the employee is directly employed or on a third-party payroll.

Scope of the POSH Policy

The main purpose of the POSH policy is to create an inclusive work environment for all employees, protect their rights, and prevent sexual harassment. The term "employees" in this context includes everyone working for the company, whether they are regular employees, third-party payroll employees, or contractors/sub-contractors. The only crucial aspect is ensuring that the incident is reported to the appropriate people or teams based on the location and the individual involved.

Reporting and Handling Incidents

For example, if an employee A, working for organization XXX on a third-party payroll or as a contractor, faces a sexual harassment incident, the incident should be reported to the HR or compliance teams of that organization. If the incident occurs at a client site, A should first report it to the management of the contractor’s company and then to the primary organization (XXX). The POSH policy does not differentiate between regular and third-party employees. The responsibility to handle and investigate the issue lies primarily with the company where the incident took place, followed by the relevant company or individual.

It is also essential to lodge a police complaint immediately after reporting the incident to ensure that the right actions are taken as needed. This dual approach helps in ensuring that all necessary steps are taken to address the issue effectively.

Therefore, it is clear that while the POSH policy predominantly covers employees, it also extends its protection to third parties and contractors who are within the premises of the organization. Ensuring that complaints are reported to the right channels is crucial for effective implementation of the POSH policy.

All the best.