POSH Compliance in India: Legal Provisions, Procedures and Penalties

Workplace safety is no longer just an ethical obligation—it is a statutory mandate. Yet, many employers still treat POSH as a “policy-on-paper” exercise, exposing themselves to legal, financial, and reputational risks. This article explains POSH compliance in India, covering the legal provisions, mandatory procedures, and penalties for non-compliance, in a practical and business-friendly manner.

What Is POSH Compliance?

POSH compliance refers to adherence to the legal framework governing the prevention, prohibition, and redressal of sexual harassment at the workplace.

The law aims to:

• Protect women against sexual harassment at work
• Provide a structured grievance redressal mechanism
• Create a safe, inclusive, and dignified work environment

POSH compliance is not optional. It is a continuous legal responsibility of every employer.

Legal Framework Governing POSH in India

The primary legislation is:

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, read with the POSH Rules, 2013.

Applicability

POSH applies to:

• All workplaces (private, public, organized, unorganized)
• Offices, factories, shops, startups, NGOs
• Remote work, client locations, and work-related travel
• Any organization with one or more employees

What Constitutes Sexual Harassment?

The Act defines sexual harassment broadly, including:

• Physical contact and advances
• Demand or request for sexual favors
• Sexually colored remarks
• Showing pornography
• Any unwelcome conduct of a sexual nature

Importantly, intent is irrelevant. What matters is the impact on the aggrieved woman.

Mandatory POSH Compliance Requirements

1. Constitution of Internal Committee (IC)

Every organization with 10 or more employees must constitute an Internal Committee comprising:

• A Presiding Officer (senior woman employee)
• At least two internal members
• One external member (POSH expert / NGO / lawyer)

Failure to constitute an IC is itself a violation.

2. POSH Policy

Employers must adopt a clear, accessible, and legally compliant POSH Policy that includes:

• Definition of sexual harassment
• Complaint mechanism
• Inquiry procedure
• Confidentiality obligations
• Consequences of misconduct

The policy must be shared with all employees and displayed at the workplace.

3. Awareness and Training

The Act mandates regular sensitization and training programs for:

• Employees (to understand rights and responsibilities)
• Internal Committee members (to conduct lawful inquiries)

A policy without training is considered incomplete compliance.

4. Complaint Handling Procedure

Key procedural safeguards include:

• Written complaint within 3 months (extendable)
• Inquiry completion within 90 days
• Confidentiality at every stage
• Opportunity of hearing to both parties
• Reasoned findings and recommendations

Non-adherence to procedure can invalidate the inquiry.

5. Annual POSH Report

Every Internal Committee must submit an Annual Report to:

• The employer
• The District Officer

This report includes number of complaints received, disposed, and pending.

Penalties for Non-Compliance

POSH violations attract serious consequences, including:

1. Monetary Penalties

• Fine up to ₹50,000 for first non-compliance
• Higher penalties for repeated violations

2. Business and Licensing Risks

• Cancellation or non-renewal of licenses
• Deregistration or withdrawal of government benefits

3. Reputational Damage

• Media exposure
• Loss of employee trust
• Investor and client scrutiny

4. Personal Liability

Senior management and HR heads may face accountability for systemic failures.

Common POSH Compliance Mistakes

• Copy-paste POSH policies
• No external IC member
• No IC training
• No annual reporting
• Treating POSH as an HR formality rather than a legal process

These mistakes are often discovered during inspections, disputes, or litigation.

POSH Compliance as a Governance Tool

Modern organizations now view POSH compliance as:

• A corporate governance requirement
• A key ESG and workplace ethics indicator
• A safeguard against employment disputes

Effective POSH implementation reduces legal risk and improves workplace culture.

How The Compliers Helps

At The Compliers, we provide end-to-end POSH compliance solutions, including:

• Legally sound POSH Policy drafting
• Internal Committee constitution and external member support
• Employee and IC training modules
• Our approach focuses on practical compliance, not just documentation.

Conclusion

POSH compliance in India is a legal necessity, not a choice. With increasing enforcement, judicial scrutiny, and workplace awareness, organizations can no longer afford superficial compliance.

A robust POSH framework protects employees, strengthens governance, and shields businesses from serious legal consequences.

The question is no longer whether you need POSH compliance—but how well you implement it.

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