POSH Act Compliance: What Every Employer Must Do

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (the POSH Act) applies to public and private workplaces alike, including offices, shops, hospitals, educational institutions and startups.

Background

The Act builds on Vishaka v. State of Rajasthan, (1997) 6 SCC 241, in which the Supreme Court recognised sexual harassment at the workplace as a violation of fundamental rights and laid down guidelines that applied until the Act was passed.

Key obligations of employers

• Internal Committee (IC): every employer with ten or more employees must constitute an IC, presided over by a senior woman employee, with at least one external member from an NGO or with relevant expertise, and at least half of its members women.
• Policy and awareness: frame a written policy, display the consequences of sexual harassment and the IC’s details, and conduct regular awareness programmes.
• Inquiry: complete inquiries within 90 days and act on the IC’s recommendations within 60 days.
• Annual report: the IC must prepare an annual report, and the employer must include details in its annual report or inform the District Officer.
• Penalty: non-compliance can attract a fine of up to ₹50,000, with higher penalties and possible cancellation of licence or registration for repeat violations.

The Supreme Court’s 2023 directions

In Aureliano Fernandes v. State of Goa (judgment dated 12 May 2023), the Supreme Court found serious gaps in the implementation of the Act and directed governments and authorities to verify that committees have been constituted with the correct composition, to publish the details of committees on their websites, and to conduct regular orientation and training for committee members and employees. While the directions were addressed mainly to public bodies, they underline the compliance expected of every employer.

Practical steps for businesses

• Constitute or reconstitute the IC and record its composition.
• Adopt a POSH policy and circulate it to all employees.
• Train IC members on conducting fair inquiries and keeping records confidential.
• File the annual report on time.

Key judgments

• Vishaka v. State of Rajasthan, (1997) 6 SCC 241.
• Aureliano Fernandes v. State of Goa (Supreme Court, 12 May 2023).