POSH Compliance refers to a structured framework of policies, legal mandates, and preventive measures aimed at preventing and addressing sexual harassment in the workplace. It is governed by the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013, widely known as the POSH Act.
The law is applicable to every company, including private companies, public companies, and listed entities, and requires organizations to proactively safeguard employee rights, especially those of women, in both physical and remote workplace environments.
The POSH Act, 2013 applies to all workplaces with 10 or more employees in India, making it mandatory for organisations to implement measures to prevent and address sexual harassment. This includes:
Public, Private, and Non-Government Organisations
Public sector entities, private companies, and non-governmental organisations (NGOs)
Any establishment involved in trade, services, manufacturing, education, entertainment, healthcare, or any other industry.
Applicability to Diverse Workspaces
Formal and informal workplaces
Organisations with 10 or more employees are required to establish an Internal Complaints Committee (ICC)
Workspaces include physical offices, remote work settings, and any location where work-related activities occur.
Employees and Other Stakeholders
Full-time, part-time, and contractual employees
Interns, trainees, and apprentices
Individuals engaged under contract or temporary employment.
Small and Medium Enterprises (SMEs)
SMEs with less than 10 employees are required to escalate complaints to the Local Complaints Committee (LCC) set up by the district authorities
Corporate Entities
Corporates must establish an Internal Complaints Committee (ICC) at all branches with more than 10 employees
Regular training and awareness programs are critical to ensure compliance.
Other Sectors
Educational Institutions: Applicable to schools, colleges, and universities for both employees and students
Healthcare and Hospitality: Includes hospitals, clinics, hotels, and other service-oriented industries
Freelancers and Remote Workspaces: The Act also covers individuals working remotely or offsite for organisations.
Integrating POSH compliance with corporate laws ensures that organizations uphold statutory responsibilities under the Companies Act of 2013 and the PoSH Act mandates. A comprehensive POSH policy supported by an Internal Committee—including external non-governmental organization representatives—is vital to creating a safe work environment for women employees. Board members play a crucial role in reviewing annual returns, overseeing the submission of the PoSH annual report, and implementing complaint mechanisms within a stipulated time frame. Embedding these best practices not only mitigates legal consequences but reinforces the organization’s commitment to an inclusive workplace and employee well-being.
Under Section 134 of the Companies Act, 2013, companies are legally mandated to disclose POSH compliance in the Board’s Report for each calendar year, confirming the constitution of the Internal Complaints Committee (ICC) as per the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Law). This disclosure, embedded within the Directors’ Responsibility Statement, certifies that all necessary steps have been taken to create a secure workplace and safe working environment for female employees and women employees, including the appointment of trained committee members and external members. Organizations must address complaints of sexual harassment, conduct training, and track the number of cases within a stipulated timeframe to demonstrate regulatory compliance. Failure to comply may result in legal penalties of ₹300,000 for the company and ₹50,000 per senior-level officer, along with reputational risk and broader legal implications. Online training, awareness sessions, and a robust complaint mechanism are essential for fulfilling the organization’s POSH policy and safeguarding employee well-being in an inclusive workplace.
POSH is a critical component of Corporate Social Responsibility (CSR), and the two are closely connected. A company that values CSR must also prioritise POSH, as the way it treats its employees is a reflection of its overall ethical commitment. POSH is a part of CSR as it helps to create a safe, inclusive, and respectful workplace environment. It is one of the most basic elements of a company’s social responsibility. Here are some ways in which CSR and POSH are connected:
The way a company treats its employees is a reflection of its overall ethical stand.
A company’s social responsibility begins from within its walls, and POSH ensures that the workplace is safe, inclusive, and respectful.
By including POSH as part of the CSR, the company shows its employees that they are valued and are as important to the company as the external stakeholder.
Strong POSH policies reinforce a strong CSR, while a strong CSR strategy reinforces strong POSH activities.
Implementing a POSH compliance program ensures a workplace free of harassment, fostering a culture of respect, equality, and safety for all employees, particularly women.
Legal Adherence and Risk Mitigation: Compliance with the POSH Act, 2013, protects organisations from legal liabilities and reputational damage that may arise from non-compliance or negligence in handling harassment cases.
Boosts Employee Morale and Productivity: A harassment-free workplace boosts employee morale and fosters trust, which directly enhances productivity and innovation.
Strengthens Organisational Culture: Awareness programs and compliance training cultivate a workplace culture that prioritises mutual respect, inclusivity, and awareness of employee rights and responsibilities.
Improves Reputation and Employer Branding: Adhering to POSH compliance guidelines positions organisations as ethical and employee-friendly, enhancing their reputation and attractiveness to potential talent.
Encourages Reporting and Fair Redressal: The establishment of an Internal Complaints Committee (ICC) ensures a structured and unbiased approach to handling complaints, empowering employees to report incidents without fear of retaliation.
Promotes Workplace Equality: By preventing harassment and fostering inclusivity, POSH compliance directly contributes to a fair and equitable work environment where employees can thrive based on merit.
The POSH Compliance Procedure ensures that organizations follow the legal framework outlined in the Sexual Harassment of Women at Workplace Act, 2013. It includes the following steps:
Drafting the POSH Policy
The first step is to draft a proper POSH policy for your firm. We have a team of legal experts who can help you with drafting a compliant POSH policy. Here are some main aspects that a POSH policy should contain:
Objective and Purpose: Clearly define the policy’s goals and objectives
Scope: Specify who the policy applies to (e.g., employees, contractors, office premises, team outings). Consider including a gender-neutral policy
Definition of Sexual Harassment: Provide a precise definition of sexual harassment, outlining the behaviors it covers
Responsibilities: Detail the responsibilities of the aggrieved party, the accused, witnesses, and other stakeholders
Internal Committee: Specify the constitution of the Internal Complaints Committee (ICC) and list its members
Complaint Procedure: Clearly outline the process for filing complaints, investigation procedures, timelines, and how findings will be communicated
Disciplinary Actions: Define the potential penalties and disciplinary actions for violations of the policy
Appeal Process: Include a process for appealing the decisions made by the Internal Committee
Compensation Program: Detail the compensation available to the complainant, if applicable
Privacy Clause: Ensure the confidentiality of all involved parties by including a privacy clause in the policy
Amending Employment Contracts
Employment agreements must reflect the organisation’s zero-tolerance stance on sexual harassment and include adherence to POSH policies as part of the terms and conditions. They must ensure that the contract explicitly states the employee’s right to work in a harassment-free environment and outlines consequences for violations of the POSH Act.
Constituting the Internal Committee (IC)
The IC is responsible for investigating complaints of sexual harassment, ensuring confidentiality, and recommending appropriate actions for redressal and prevention.
Formation of the Internal Committee: The IC must include a minimum of four members: a presiding officer (a senior woman employee), two employees committed to workplace welfare, and an external member with expertise in women’s rights or law
Role of External Member: The external member ensures impartiality, expertise, and independence in decision-making, safeguarding the integrity of the investigation process
Responsibilities of the IC: The IC investigates complaints, gathers evidence, maintains confidentiality, submits findings within 90 days, and recommends corrective actions to the employer. IC members may be disqualified due to bias, conflict of interest, or any conduct undermining their impartiality or credibility
Failure to constitute an IC can lead to penalties of up to ₹50,000 and reputational damage for non-compliance under the POSH Act.
Creating Employee Awareness
Mandatory POSH Compliance Training: Organisations must conduct regular training sessions for employees and managers to educate them about the POSH Act, complaint procedures, and behavioral expectations
Awareness Campaigns: Continuous campaigns such as posters, emails, and workshops help employees understand their rights and responsibilities under the POSH Act
Guidelines for Employee Conduct: Clear communication of acceptable workplace behavior and strict consequences for non-compliance ensures a respectful and harassment-free environment
Filing the Annual Report
Organisations must submit an annual report to the district officer detailing the number of complaints received, actions taken, and pending cases to demonstrate compliance on or before 31 January.
The report should include:
The ICC’s composition: Details of Internal Committee members
Total number of sexual harassment complaints received: Include all complaints within the reporting year
Number of sexual harassment complaints resolved and closed: List resolved cases with dates
Number of ongoing sexual harassment complaints under investigation for over 90 days: Disclose prolonged investigations
Total employee count and the number of employees who have undergone POSH awareness training: Provide employee figures and training data
Details of actions taken by the organisation or District Officer in response to complaints: Mention any interventions or outcomes
Consequences of Non-Filing: The District Officer may issue a notice or levy a penalty, which may go up to ₹50,000 depending on the case