A safe, respectful workplace isn’t just good for morale, it’s good for business. A global Gallup survey found that 43% of workers cite unclear reporting procedures as a reason for not reporting workplace harassment. That’s a risk no employer can afford.
Having a workplace harassment policy isn’t about ticking a compliance box. It’s about protecting your people, your reputation, and your bottom line.
Understand what a harassment policy is and why it matters
Learn the legal requirements under the POSH Act
Discover the core components of an effective policy
Explore steps to build and implement the policy correctly
Recognise the role of founders, HR, and finance leaders in making it work
Get insights on how to train your team and handle complaints
In this blog, we’ll cover what a harassment policy includes, why it matters, and how to implement it effectively, especially for fast-growing businesses and teams in India.
A workplace harassment policy is a formal document that outlines what behaviour is considered unacceptable in the workplace, and what employees can do if they experience or witness it.
It is an important part of your workplace safety policy, designed to protect all team members from verbal, physical, sexual, emotional, and online abuse.
The policy helps:
Define harassment in clear terms
Provide a structured, confidential way to report incidents
Establish the process for investigations and disciplinary action
Show your company’s zero-tolerance stance
In India, harassment policies are shaped by the POSH Act (2013), the law that mandates the prevention of sexual harassment at the workplace. This act was built on the Vishakha Guidelines laid down by the Supreme Court to ensure dignity and safety, especially for women in professional spaces.
Every organisation with 10 or more employees is legally required to have a policy in place, along with an Internal Complaints Committee (ICC) to handle grievances.
But a good policy isn’t just about legal compliance. It signals that your business takes safety and respect seriously, which helps attract top talent and reduce employee turnover.
To ensure compliance with the POSH (Prevention of Sexual Harassment) Act and foster a safe work environment, it’s essential to implement certain key aspects in your workplace harassment policy. These elements are vital in ensuring that the policy is accessible, visible, and understood by all employees.
1. Mandatory Disclosure
Companies are legally required to display the POSH policy within the workplace prominently.
Why it matters: This helps inform employees about the company’s commitment to preventing sexual harassment, as well as the procedure they should follow if they experience or witness harassment. Displaying this policy is a critical step in creating a transparent and safe environment.
2. Conspicuous Location
The POSH policy should be placed in locations that are easily accessible and visible to all employees.
Why it matters: By ensuring the policy is visible in common areas (such as break rooms, bulletin boards, or digital portals), employees are constantly reminded of their rights and the procedures for reporting harassment. It also ensures that new joiners are aware of the policy from day one.
3. Awareness
In addition to the physical display of the policy, companies should conduct regular awareness sessions and training programs for employees to make them aware of the policy and its implications.
Why it matters: Awareness training ensures that employees understand what constitutes harassment, how to report incidents, and the company's zero-tolerance stance on inappropriate behaviour.
Ongoing sessions help reinforce the importance of maintaining a respectful workplace culture and provide clarity on how employees can protect themselves.
Incorporating these key aspects ensures legal compliance and fosters a respectful, safe, and trustworthy work environment
A well-drafted harassment policy is not optional; it’s necessary. It protects your employees, your leadership, and your business.
Here’s why every employer in India, whether a startup or a growing enterprise, must treat it as a priority:
Legal Compliance Is Non-Negotiable
Under the POSH Act, 2013, all workplaces, including private companies, public sector entities, NGOs, educational institutions, hospitals, and even sports venues in India with 10 or more employees, are legally required to have a harassment policy and an Internal Complaints Committee (ICC).
Failure to comply can lead to:
Penalties up to ₹50,000 for the first offence
Double the fine for repeat violations
Possible cancellation of business licence for continued non-compliance
Legal action against key leadership, especially if reports are ignored
You can learn more about these penalties from here. If your company is listed, you’re also expected to disclose POSH compliance in your board reports, as per SEBI guidelines.
It Builds a Culture of Safety and Trust
When employees know their safety is a priority, they’re more likely to:
Report problems early
Stay longer with your organisation
Be more engaged and productive
This is especially important for remote or hybrid teams, where misconduct can go unnoticed without clear policies in place.
It Saves You from Legal and Financial Risks
Harassment cases don’t just hurt morale; they’re expensive.
Legal defence costs
Settlements
Loss of business partnerships
Damage to investor and customer confidence
For CFOs and finance managers, investing in prevention through a solid policy is far more cost-effective than handling fallout later.
It Sets the Right Example at the Top
A clear harassment policy shows leadership accountability. It sends a message that toxic behaviour, no matter where it comes from, will not be tolerated.
Pro-Tip: This is powerful when the message comes from founders, CXOs, and team heads.
If you want to avoid paying penalties, it is important to maintain a workplace harassment policy. So, let’s explore the key components every harassment policy must include, from definitions to disciplinary action.
A well-written harassment policy shouldn't read like legal fine print. It should be relatable, practical, and easy for your team to trust and follow. But how to create it? When creating a workplace harassment policy, consider various scenarios that could occur. Here’s how to structure it, with real-world context to guide you.
Scenario 1: “I thought he was just joking.”
A new employee reports uncomfortable remarks made during meetings, but others call it ‘banter.’
✅Your policy must clearly define harassment.
It should list different types:
Verbal (inappropriate jokes, comments)
Sexual (unwelcome advances, suggestive messages)
Physical (touching, blocking paths)
Psychological (threats, bullying)
Online (messaging, email, video calls)
Also, clarify that intention doesn't excuse impact. If it makes someone uncomfortable, it counts.
Scenario 2: “I didn’t know who to report it to.”
An intern faces harassment but is unsure how to raise the issue, so they stay silent.
✅Your policy should offer multiple, clear reporting channels.
Make it easy to report misconduct by including:
A specific email ID or form link
Names and roles of reporting officers or ICC members
Option to report anonymously
Assurance of zero retaliation
Transparency builds trust. Silence breaks it. Ensure that every employee understands the procedures for reporting workplace misconduct and that appropriate action will be taken towards it.
Scenario 3: “I’m uncomfortable filing a complaint, he’s my manager.”
An employee fears backlash if they report someone senior.
✅Your policy must guarantee confidentiality and protection.
Clarify that all complaints are:
Complaints will be handled with full confidentiality
Only members of the ICC will have access to details
No one will face retaliation for speaking up, even against senior staff
Also mention interim measures like reassignments or paid leave during the inquiry. When employees feel safe, they’re more likely to come forward early, before issues escalate.
Scenario 4: “I didn’t know we needed a committee for this.”
The company gets a legal notice after failing to form an ICC.
✅Form an Internal Complaints Committee (ICC) as per POSH.
This is a legal mandate for companies with 10+ employees. It must include:
One female Presiding Officer
Two employees (preferably trained in legal or social issues)
One external member (from an NGO or legal background)
No ICC means non-compliance, which can result in possible fines and license risks. You can learn more about forming an ICC committee from here.
Scenario 5: “So what happens after I file a complaint?”
Employees hesitate to report because they don’t know what comes next.
✅Spell out the investigation process.
Your policy should outline:
How the ICC reviews the case
Timeframes (90 days for inquiry, 10 days for reporting outcome)
Opportunity for both parties to be heard
Right to appeal under the law
This helps victims feel safer and gives clarity to everyone involved.
Scenario 6: “That guy was warned last year — again?”
A repeat offender is back to old behaviour because nothing serious happened the first time.
✅List clear disciplinary actions.
Ensure your policy clearly states that if harassment is proven, the offender may face consequences such as a written warning, salary deduction or demotion, termination of employment, or referral to legal authorities.
It should also state that false complaints will have consequences, as per the POSH rules.
Scenario 7: “Wait, we only had training once last year.”
Managers forget the protocol, and new joiners are unaware of the policy.
✅Make training mandatory and ongoing.
Include POSH awareness in:
Onboarding sessions
Annual refresher workshops
Role-specific training for team leads and ICC members
A one-time presentation won’t protect your people. Continuous learning will.
Scenario 8: "I thought only women could file a complaint."
An employee, regardless of gender, assumes that the harassment policy only applies to women, leaving them hesitant to file a complaint after facing inappropriate behavior.
✅ Your policy should be gender-neutral and inclusive.
Clarify that the policy applies to all employees, regardless of gender, and ensure everyone knows that harassment of any kind is unacceptable:
Harassment can be experienced by anyone, regardless of their gender.
All employees, including men and non-binary individuals, have the right to report incidents.
Make it clear that the policy ensures equal protection for everyone.
This promotes an inclusive environment where everyone feels empowered to speak up.
A good policy doesn’t just exist on paper. It is established in the culture you build.Now, let’s learn how to build and roll out this policy inside your organisation.
Creating a harassment policy is only half the job. To truly protect your people and business, it needs to be understood, accessible, and action-ready. Here's how to build and roll it out effectively.
Step 1: Draft a Policy That Reflects Your Workplace
Use the POSH Act, 2013 as your legal base, but keep the language simple and inclusive. Avoid jargon and include everyday workplace scenarios, like inappropriate messages or video calls.
Example: A SaaS startup in Bengaluru must update its policy to cover virtual misconduct after a complaint involving inappropriate Zoom chat emojis.
Step 2: Form an Internal Complaints Committee (ICC)
Every company with 10 or more employees must form an ICC with at least one woman as the Presiding Officer, two internal members, and one external expert. Share the committee’s names and contact info across internal channels.
Pro-Tip: Create a dedicated Slack or Teams channel titled “Report Safely,” with pinned ICC contact details to make the reporting process clear and accessible for everyone.
Step 3: Roll Out the Policy with Clarity
Add the policy to onboarding decks, HR handbooks, and company intranets. Announce it during team calls or through Slack, and hold short briefings for managers to clarify their role.
Example: A D2C brand’s HR head may run quarterly “POSH Coffee Chats” on Zoom, informal Q&A sessions to boost clarity and approachability.
Step 4: Train Your Team — Not Just Once
Include POSH training in your onboarding and refresh it annually. Offer role-based training for managers and ICC members so they can act confidently if something happens.
Helpful Tip: You can integrate a short POSH quiz into the onboarding process. Its completion should be made mandatory to ensure 100% participation.
Step 5: Collect Feedback and Update
Revisit the policy annually, especially after significant team changes or the introduction of new work formats. Use anonymous surveys to collect input and revise the policy based on evolving needs.
Example: A hybrid SaaS startup must update its policy after employees flag unclear norms around personal messaging.
A well-drafted policy and strong implementation are the foundation, but policy success depends on the people driving it. The way your leadership team supports, communicates, and models the policy makes all the difference.
India has seen a 79% rise in sexual harassment complaints over the past five years, from 281 cases in FY20 to 503 in FY24.
This rise reflects two key truths: employees are more aware of their rights, and organisations are becoming more transparent in reporting incidents. Both trends underscore the importance of a clear and enforced harassment policy.
But a harassment policy is only effective when it's backed by leadership. Founders, HR, and finance teams each play a distinct role in making it work by driving accountability, ensuring compliance, and creating a culture where employees feel safe to speak up.
Founders: Set the Tone
Founders play a key role in making workplace safety a priority. When they speak about harassment prevention openly and hold even senior leaders accountable, it sends a strong signal across the company.
By regularly mentioning policy expectations in town halls or reinforcing the ICC’s role during team meetings, founders can make it clear that safety and respect aren’t optional.
HR Heads: Own the Policy End-to-End
HR leads the charge on design, implementation, and communication. They’re responsible for tailoring the policy to the organisation, ensuring legal compliance, and making it part of daily practice.
But it doesn’t stop at policy rollout. HR must organise regular training, track complaint resolution timelines, and check whether employees know their rights.
Finance Leaders: Link Policy to Risk and Compliance
While not always seen as part of the harassment prevention process, finance teams play a necessary role. They approve budgets for training, legal consultation, and tools that make reporting easy.
They also understand the cost of non-compliance. Misconduct and legal claims can damage a company’s reputation and lead to large payouts or penalties.
Finance teams can help monitor trends, allocate funds where needed, and ensure reporting stays on track.
With the right people leading the charge, the next step is ensuring everyone understands the policy, not just in theory, but in practice. Let’s look at how to train your team effectively and build ongoing awareness.
A policy is only useful when people understand it. Most employees won’t read the full document, so training and reminders are important. The goal is to make the policy real, relevant, and easy to remember, without turning it into a legal lecture.
Focus on relatable situations: Skip legal jargon. Use simple examples like unwanted messages, offhand jokes, or pressure during meetings.
Tailor training by role: New joiners need the basics. Managers and ICC members need detailed, action-based guidance.
Make it part of onboarding: Include a short walkthrough of the policy in every onboarding. Keep it clear and conversational.
Repeat it regularly: Refresh training annually. Drop short reminders in team meetings or company newsletters.
Keep the policy easy to access: Share it via your intranet, employee handbook, and HR portal. ICC contact details should be visible and easy to find.
Collect feedback and measure impact: Use anonymous surveys to check if employees understand the policy. Use the insights to improve training and share the results with leadership.
When training is clear and consistent, employees are more likely to speak up. That’s what makes your policy truly effective.
A harassment policy is not just a compliance box; it’s a workplace necessity. With rising cases across India, businesses must focus on clarity, training, and accountability to keep teams safe and protected.
Craze helps you do this with ease. From policy sharing and training reminders to ICC record-keeping and compliance tracking, Craze’s HR software streamlines it all.
Book a demo today and build a safer, smarter workplace with Craze!
1. What should be included in a workplace harassment policy?
A harassment policy should cover definitions, examples of misconduct, complaint procedures, timelines, possible outcomes, and contact details of the Internal Complaints Committee (ICC). It must align with the POSH Act, 2013 in India.
2. Is it mandatory for all companies in India to have a POSH policy?
Yes, the POSH Act mandates that any company in India with 10 or more employees must have a written policy and an Internal Complaints Committee in place.
3. How often should POSH training be conducted?
Best practice is to conduct POSH training during onboarding and refresh it annually. Managers and ICC members should receive more detailed, role-based sessions.
4. Who should be part of the Internal Complaints Committee (ICC)?
An ICC should have at least four members: a woman presiding officer, two employees familiar with legal/social issues, and one external member with relevant expertise.
5. How can startups manage POSH compliance with limited HR resources?
Startups can simplify compliance by using tools like Craze, which automate policy sharing, training reminders, and ICC record-keeping, reducing manual workload and ensuring legal readiness.
