The post-enactment phase of India’s Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 — the POSH Act — marks a decisive transition:
from simple compliance to structural transparency and stringent enforcement.
This evolution is being driven by significant interventions across legal, judicial, and digital domains.
LEGAL & CORPORATE ACCOUNTABILITY: MANDATORY DISCLOSURES
The Shift in Corporate Governance
The most impactful change in corporate governance is the move toward mandatory, data-driven POSH disclosures at the board level.
Earlier Compliance
Companies were only required to make a one-line statement confirming the constitution of an Internal Committee (IC) in their Directors’ Report under the Companies Act, 2013.
The Shift to Transparency
Amendments by the Ministry of Corporate Affairs (MCA) now mandate detailed disclosures in the Board’s Report — requiring specific data points that promote genuine accountability.
Mandatory Disclosures in the Board’s Report (Revised Rule 8(5))
- Complaints Received: Total number of sexual harassment complaints during the year
- Cases Disposed Of: Number of cases successfully resolved
- Pending Complaints: Cases pending inquiry for more than 90 days
- Employee Gender Composition: Men, women, and transgender employees
Implications for Organizations
- Makes compliance demonstrable and measurable
- Failure to disclose accurately can lead to regulatory scrutiny and reputational damage
Organizations must:
- Maintain accurate and timely complaint data
- Ensure ICCs adhere to the 90-day inquiry timeline
- Standardize documentation across offices and subsidiaries
CONSEQUENCES OF NON-COMPLIANCE
Failure to meet disclosure obligations attracts penalties under both the POSH Act and the Companies Act, turning POSH compliance into a business-critical governance metric.
JUDICIAL PUSH: COMPLIANCE AUDITS & ENFORCEMENT
The Supreme Court of India has issued landmark directives transforming compliance from voluntary adherence to auditable action.
Case Highlight: Aureliano Fernandes v. State of Goa (2023)
The Court reaffirmed that POSH compliance is a constitutional duty, not a mere statutory formality.
Key Directives for All Employers & Institutions:
- Mandatory ICC Constitution (for workplaces with ≥10 employees)
- External Member with expertise in women’s issues or law
- Regular training for ICC and HR teams
- Routine inspections & audits by Labour Commissioners
- Strict deadlines and penalties (e.g., business license non-renewal post Sept 28, 2025)
DIGITAL REDRESSAL & MONITORING: THE SHe-BOX EXPANSION
The SHe-Box (Sexual Harassment electronic-Box) portal, launched by the Ministry of Women and Child Development (MWCD), has evolved into a national compliance and redressal ecosystem.
Core Features
- Single-Window Platform: Enables online complaint filing
- Real-Time Tracking: Auto-forwards complaints to the relevant IC/LC
- Compliance Control Tower: Government-level monitoring system
Impact & Significance
- Empowers women in unorganized sectors
- Strengthens judicial oversight and digital traceability
- Links IC registration with complaint redressal for institutional accountability
STATUTORY PENALTIES (SECTION 26 OF POSH ACT)
Offense | First Conviction | Repeat Offense |
Failure to constitute an IC | ₹50,000 | ₹1,00,000 |
Failure to act on IC/LC recommendations | ₹50,000 | Fine may be doubled |
Failure to file Annual Report | ₹50,000 | Fine may be doubled |
Contravening other provisions (training, SHe-Box registration, etc.) | ₹50,000 | Fine may be doubled |
Note: Failure to register ICs on SHe-Box (where mandated) is a compliance violation that attracts statutory fines.
Repeat offenses may lead to license cancellation or non-renewal.
JUDICIAL & FINANCIAL CONSEQUENCES
Beyond statutory fines, non-compliance can invite severe repercussions:
- Exemplary Damages: Courts have awarded compensation in crores for systemic failure
- Contempt of Court: Post-Aureliano Fernandes, non-compliance can lead to contempt proceedings
REPUTATIONAL & BUSINESS RISKS
The age of digital accountability amplifies consequences:
- Reputational Damage — Loss of public trust and credibility
- MCA Scrutiny — False or missing disclosures invite penalties
- Talent Attrition — Unsafe reputations deter skilled professionals
LEGISLATIVE INTERVENTIONS: EMPOWERING COMPLAINANTS
Proposed Amendments to POSH Act (2024)
Aspect | Current (2013 Act) | Proposed (2024) |
Complaint Filing Timeline | 3 months (extendable by 3) | 1 year (with discretionary extension) |
Conciliation | Allowed at complainant’s request | Removed — inquiry mandatory |
Rationale:
- Extended timeline acknowledges trauma and fear in reporting
- Removing conciliation ensures unbiased, formal inquiries
IMPLICATIONS FOR INTERNAL COMMITTEES (ICs)
- Enhanced Mandate & Discretion
- All complaints must undergo formal inquiry
- ICs can condone delays beyond one year, with reasons recorded
- Evidence Management & Fairness
- Delays risk loss of evidence
- ICs must standardize documentation, data security, and legal holds
IMPLICATIONS FOR EMPLOYERS
- Policy & Procedural Overhaul
- Update internal POSH policies
- Conduct advanced IC training
- Reflect new timelines and inquiry mandates
- Corporate Accountability
- Expect more inquiries and litigation
- Shift focus from resolution to prevention and culture change
CONCLUSION
India’s POSH framework has entered a new era of accountability.
Legal, judicial, and digital systems now converge to ensure auditable, transparent, and survivor-centric compliance.
Organizations must evolve from paper compliance to institutional integrity — proving commitment to safe and equitable workplaces.
About the Author
Adv. Mamta Singh Shukla
Advocate, Supreme Court of India
Founder, Vijay Foundations — dedicated to social justice, education, and empowerment.
Email: adv.mamtasinghshukla@gmail.com
Website: www.vijayfoundations.com
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