POSH Act Compliance Checklist & Supreme Court Directions

Dear Reader,

This comprehensive checklist aims to help Indian businesses navigate the complexities of the POSH Act and implement effective compliance measures.

A) Purpose of the Act: To ensure women’s right to Workplace equality, free from Sexual Harassment by emphasizing compliance with three vital elements of the PoSH Act i.e., prevention, prohibition and redressal.

B) Applicability: The POSH Act is applicable to every company, workspace, establishment, or organization that employs ten or more individuals. This includes full-time employees, part-time workers, interns, and those on contract, regardless of the industry or location of the workplace. Apply to all Workplaces, whether in the public or private sector irrespective of their size and nature of business, area of operations, etc.

C) Who can file complaint? : Any Aggrieved Person or a person authorized by the Aggrieved Person. Aggrieved Person means an individual of any age, caste, gender, or religion, whether employed or not and includes an aggrieved Woman, who alleges to have been subjected to any act of Sexual Harassment by the Respondent.

D) Section 4: Constitution of the Internal Complaints Committee (ICC): Mandatory to address issues of sexual harassment.

 The ICC should comprise the following members:

• Presiding Officer: Shall be a woman employed at a senior level;
• Internal Members: At least two members from the organization’s workforce, preferably those committed to women’s causes, experienced in social work, or have legal knowledge.
• External Member: One member from non-governmental organizations or associations dedicated to the welfare of women or a person familiar with the issues relating to sexual harassment. Employer must pay fees to  external members for their participation in ICC proceedings.
• Responsibilities: The ICC is responsible for receiving, investigating, and resolving complaints of sexual harassment. They ensure a fair and unbiased inquiry into each case.
• Proceedings: The ICC must carry out its proceedings promptly, adhering to the timelines stipulated under the POSH Act.
• Condition: At least half of the IC members should be women.
• Tenure of Members : IC members can serve for up to three years.
• Disqualification of Members:Any member shall be removed from the Committee and the vacancy so created or any casual vacancy shall be filled by fresh nomination in accordance with the provisions of this section if they:

a) contravenes the provisions of section 16 (confidentiality of complaints); or

b) has been convicted for an offence or an inquiry into an offence under any law for the time being in force is pending against him; or

c) he has been found guilty in any disciplinary proceedings or a disciplinary proceeding is pending against him; or

d) has so abused his position as to render his continuance in office prejudicial to the public interest,

E) POSH Policy Implementation: Mandatory as per the section 19 of the POSH Act and Rule 13 of POSH Rules, every employer shall:

“formulate and widely disseminate an internal policy or charter or resolution or declaration for prohibition, prevention and redressal of sexual harassment at the workplace intended to promote gender sensitive safe spaces and remove underlying factors that contribute towards a hostile work environment against women”.

Purpose: For the prohibition of sexual harassment and redressal of complaints pertaining to sexual harassment.

Contents: The POSH policy should ideally include information, such as the definition of sexual harassment in accordance with the POSH Act, examples of what constitutes sexual harassment, unacceptable behaviours, details of the ICC, the procedure for addressing complaints of sexual harassment, appeal process and the applicability of the POSH policy, among other relevant information.

F) Mandatory Annual Reporting

Section 21 of the POSH Act and Rule 14 of the POSH Rules require every ICC to prepare and submit an annual report to the district officer as part of their compliance obligations.

Content of the filings: This report must contain specific details, including the number of complaints of sexual harassment received during the year, the number of cases disposed of by the ICC, the number of cases pending for more than 90 (ninety) days, the nature of actions taken against offenders, and the number of workshops conducted.

G) Awareness and training Programs: Mandatory

Section 19 of the POSH Act, read with Rule 13 of the POSH Rules, mandates that every establishment shall organize workshops and awareness programs at regular intervals to educate employees about the provisions of the POSH Act and to make ICC members aware of the procedures to be followed for conducting inquiries in accordance with the relevant provisions of the POSH Act. These programs should educate employees about the legal definition of sexual harassment, their rights, the procedure for reporting complaints, real-life examples, etc. Employers should aim to include case studies in these programs to help employees understand real-life scenarios of sexual harassment. Though, there is no specified limit for conducting training sessions within a year, it is always recommended to conduct them at least twice a year. If new employees have joined or the ICC members have changed, the training sessions can be conducted more frequently throughout the year.

H) Punishment:

First Conviction: Employer if contravenes the provision of the Act, he shall be punishable with fine which may extend to fifty thousand rupees.

Second Conviction: For Same offence, employer shall be liable for:

(i) Twice the punishment, which might have been imposed on a first conviction;

(ii) cancellation, of his licence or withdrawal, or non-renewal, or approval, or cancellation of the registration, as the case may be, by the Government or local authority required for carrying on his business or activity.

I) Compliance under Companies Act, 2013 : Disclosure in Directors’ Report

Rule 8 of the Companies (Accounts) Rules, 2014, mandates that companies include a statement in their directors’ report confirming compliance with the provisions related to the constitution of internal complaints committees under the POSH Act. Failure to disclose this information can lead to penalties under the Companies Act, 2013.

Optional additional Board Report Content basis the annual reporting:

The summary of sexual harassment complaints received by the Committee and disposed of during the year under review:

• • Number of complaints of sexual harassment received in the year: NIL
  • Number of complaints disposed off during the year: NA
  • Number of cases pending for more than ninety days: NA

J) Supreme Court judgement: There are various narratives set through Supreme Court landmark judgement on POSH Act. Currently we shall here discuss latest judgement in Case Aureliano Fernandes v. State of Goa & Others. (December, 2024)

Supreme Court Directions:

• Union, State, and UT Governments must verify if ministries, departments, PSUs, etc. have properly constituted ICC as per statutory requirements.
• Entities must publish on their websites the details of their ICs/LCs, email contacts, complaint procedures, and relevant policies.
• Authorities must conduct training and orientation for IC/LC members on their duties and the correct procedures for handling complaints.
• Employers should regularly organize workshops and awareness programs to sensitize both ICs and employees on the POSH framework and responsibilities.

Actions required for organizations:

√ Constitute as valid Internal Complaint Committee (ICC)

√ Training for ICC members and employees

√Conduct awareness programmer

√ Annual Filings

√ Maintain proper records and documentation

References:

1. The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act)

2. Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Rules, 2013 (“POSH Rules”),

3. Supreme Court Directions, 2025 (Aureliano Fernandes v. State of Goa & Others.)

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Author: CS Ravi Garg | Company Secretary & Compliance Officer | E-mail : csravi2014@gmail.com | Mob.: +91-7838 20 4665

Disclaimer: In no event shall the author be liable for any direct, indirect, special, or incidental damages resulting from or arising out of or in connection with the use of this information.