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Should SMEs take sexual harassment at workplace seriously?

The new-age investors understand the need for making the workplace safe and congenial and the PoSH guideline is the first step to inclusion and diversity

August 06, 2022 / 06:22 IST
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Many SMEs approach us for consultation on how to implement PoSH (prevention of sexual harassment) provisions at workplaces, especially when new investors scrutinise such provisions. The new-age investors understand the need for making the workplace safe and congenial and the PoSH guideline is the first step to inclusion and diversity. Diversity on the other fronts comes later.

Though the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act has been notified, the details on its administration are not clear. We hear about sordid cases of harassment every now and then. These grab the headlines, especially if the people involved are high profile. SMEs can have a major challenge if things blow over and their major ethical customers stop dealing with them due to their poor record on this front. This can also present a risk because while details of how to submit compliance reports are nebulous, the fines prescribed can create an existential issue.

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SMEs and start-ups often do not take the Act seriously. When it does happen, there is a tendency to brush it under the carpet. Often, the victim is named and shamed while the Act clearly talks about confidentiality and prevention of any backlash on the complainant. There is hardly any training because most of the owners and leadership teams believe that there are no cases and are pretty confident that there will be no cases in the future as well.

In our discussions with SME employees, we find that they are not aware of what constitutes sexual harassment and the rights that they have under the Act. They also do not understand that progressive companies go beyond the bare minimum of compliance. Understanding that going above and beyond compliance is a cornerstone of creating a respectful workplace is elusive.