Workplaces should be places of equal opportunity, safety, and dignity. With more and more women joining the workforce it is imperative to ensure enabling work environment for the women. However, sexual harassment incidents continue to occur in a variety of settings, including businesses, educational institutions, healthcare facilities, NGOs, startups, and even unofficial establishments. The Supreme Court of India, in Vishakaha & Ors. V. State of Rajasthan and others [1997(7) SCC 323], held that sexual harassment at workplace is a form of discrimination against woman and violates her constitutional right to equality. This landmark judgement laid the foundation for enactment of a comprehensive legislation to provide safe and enabling work environment to every woman, free of any form of sexual harassment by fixing responsibility on the employers as well as the district officer. Therefore, Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, also referred to as the POSH Act, was passed by the Indian legislature in order to address the issue of sexual harassment faced by women in their workplace.
Many organizations are still unaware that POSH compliance is required by law; it is not a choice and non-compliance may lead to severe legal liabilities and expensive litigations.
Once we were approached by a client who runs an e-commerce start-up and has around 50 employees. He sought my legal help as one of his female employees had filed a criminal case of sexual harassment against a male employee in the Court and the employer was also made a party as “Respondent”. She had also registered a complaint against his company to the District Officer as there was no POSH redressal mechanism in the company. Consequent to the complaint Employer received notice from the District Officer. Now the employer was running pillar to post to get out of this unwarranted situation.
The Employer was utterly shocked and asked me that, ‘he is a small private business owner with only 50 people working for him, is POSH Act applicable to his company?
Who has to put posh into practice?
As per the Section 4 of the POSH Act 2013, every organization with ten or more employees is mandated to establish an Internal Committee (IC).
This is applicable to all workplaces as defined in Sec 2(o) of the Act which include: -
- Private businesses
- Governmental establishments
- Institutions of higher learning
- Clinics and hospitals
- Trusts and NGOs
- MSMEs and startups
- Shops, factories, and companies
Whether the position is contractual, temporary, permanent, intern, consultant, or trainee is irrelevant. If there are ten or more employees, POSH is applicable.
What Does POSH Compliance Involve?
Developing a policy is just one facet of POSH compliance. It involves an organised framework aimed at preventing and addressing sexual harassment, which includes:
i) Constitution of an Internal Committee (IC)
- The Presiding Officer should be a senior female employee
- A minimum of two internal members
- One external member with legal expertise or familiarity with women’s rights
ii) POSH Policy Requirements
- Clear definition of sexual harassment
- Procedure for filing complaints, investigation, and resolution
- Protection from retaliation
- Regular awareness and training programs
- Employee education and mandatory training for IC members
- Established redressal system
- Time-bound inquiry process
- Confidentiality and principles of natural justice
iii) Annual Reporting
- As per Section 21(1) of the Act, the Internal Committee must submit an Annual Report to the Employer and the District Officer every year
- The employer must include the number of cases filed and disposed of in the organisation’s Annual Report
- If no Annual Report is prepared, details must be submitted directly to the District Officer
Repercussions for Employers for Non-Compliance with the POSH Act
Failure to implement the POSH Act or contravention of its provisions may result in serious legal and reputational repercussions for employers.
- Penalties for first-time non-compliance may extend up to a fine of ₹50,000
- Increased fines and punishment for employers convicted of repeated violations
- Revocation, withdrawal, non-renewal of licence, or cancellation of registration for recurrent infractions
- Unfavourable outcomes during labour audits and inspections
- Loss of employer brand value, investor trust, and organisational credibility
- Personal liability of directors, partners, and management to compensate victims
Courts have consistently ruled that organisations cannot evade accountability by claiming the absence of complaints, and that ignorance of the law is not a valid defence.
Many employers perceive POSH as a reactive mechanism. In reality, the law places equal emphasis on prevention and prohibition. A robust POSH policy and consistent compliance safeguard employers from legal liability and reputational damage.
A safe and dignified workplace culture reduces attrition and workplace disputes, leading to improved productivity and organisational efficiency.
A wake-up call to organisations that have not yet implemented the POSH Act!
As advocates, we frequently encounter organisations that remain unaware of POSH compliance requirements and take action only after a sexual harassment complaint arises. By that stage, reputational, emotional, and legal harm has often already begun.
POSH compliance is mandatory for organisations employing ten or more persons. It is not merely a moral obligation but a legal necessity to ensure safety, equality, and inclusivity in the workplace.
Reference: Bare Act – “The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013”
Disclaimer: This article is intended for informational purposes only and does not constitute legal advice. For compliance specific to your organisation, please consult a qualified legal professional.