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Why PoSH Compliance Matters More in 2026

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, universally referred to as the PoSH Act, has been in force for over a decade. For much of that period, enforcement varied significantly by sector, geography, and organisation size. That window of variable enforcement is narrowing.

Three converging factors define the compliance environment in 2026. First, the Ministry of Women and Child Development has progressively strengthened the SHe-Box digital complaints portal, enabling any aggrieved woman to lodge a complaint directly with the government, independent of the internal IC process. Second, the Companies (Accounts) Second Amendment Rules 2025, effective 14 July 2025, now require all companies to include detailed PoSH compliance data, complaint statistics and workforce gender composition in Board Reports, making IC constitution and annual reporting a governance metric visible to investors, regulators, and the public. Third, state labour departments have integrated PoSH compliance into broader employer inspection frameworks, creating the infrastructure for routine scrutiny that previously did not exist.

Two significant Bills were additionally introduced in the Rajya Sabha on 5 December 2025, proposing gender-neutral coverage, inclusion of gig and platform workers, higher penalties, and a reduced employer action timeline. These remain pending enactment. The 2013 Act and Rules continue to govern in full.

"The question for most organisations is no longer whether to comply with PoSH. It is whether their IC, policy, training, and reporting infrastructure are audit-ready at any given moment, not just during crisis management."

What Is the PoSH Act? Definition and Scope

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 was enacted to provide a safe, secure, and dignified working environment for women, and to establish a statutory mechanism for the redressal of sexual harassment complaints. The Act superseded the Vishaka Guidelines laid down by the Supreme Court of India in 1997, converting a judicial framework into binding legislation.

The Act covers all workplaces defined broadly to include establishments, organisations, offices, branches, and units in the private and public sectors. It extends to non-traditional work locations, including clients' premises, transportation provided by the employer, and any location visited by an employee in connection with their employment.

The definition of an 'aggrieved woman' under Section 2(a) is deliberately inclusive: it covers any woman, whether employed, contractual, temporary, on probation, a trainee, an intern, an apprentice, or a visitor to the workplace. There is no minimum duration of employment required.

Constituting the IC: Who, What, and How

Every employer with 10 or more employees is required under Section 4 of the PoSH Act to constitute an Internal Committee (IC) at each office or branch location. The IC is the statutory body for receiving, investigating, and recommending action on sexual harassment complaints. It cannot be substituted with a general grievance committee or an informal HR process.

Mandatory IC Composition

The IC must have a minimum of four members:

• Presiding Officer: A senior woman employee at the workplace, preferably committed to women's causes.

• Internal Members (minimum 2): Employees preferably committed to women's causes, who can be from any function or level.

• External Member (minimum 1): A person from an NGO or association committed to women's causes, or a person familiar with issues relating to sexual harassment. This member is mandatory and provides independent oversight.

A critical statutory requirement: women must constitute at least half of the total IC membership. This is a legal minimum, not a guideline. An IC where fewer than 50% of members are women is non-compliant regardless of other requirements being met. Members are appointed for a term not exceeding 3 years.

"An IC without a qualified external member, or one where women are a minority, is legally invalid. Complaints referred to such an IC create liability, not protection."

What Counts as Sexual Harassment Under PoSH

Section 2(n) of the PoSH Act defines sexual harassment to include any one or more of the following unwelcome acts or behaviour committed by a person at the workplace:

• Physical contact and advances

• A demand or request for sexual favours

• Making sexually coloured remarks

• Showing pornography

• Any other unwelcome physical, verbal, or non-verbal conduct of a sexual nature

Section 3 further specifies circumstances that constitute sexual harassment: implied or explicit promises of preferential treatment, threats of detrimental treatment, interference with work performance, creation of a hostile work environment, and humiliating treatment that threatens health or safety. The definition is non-exhaustive and encompasses digital conduct.

The Complaint Redressal Process: Step by Step

Filing a Complaint

Under Section 9, an aggrieved woman may make a written complaint to the IC within three months of the incident. The IC may extend this period by a further three months where circumstances warrant. Note: The Amendment Bill 2024 proposes extending the initial filing period to 12 months with further discretionary extension — this is pending enactment.

Conciliation (Optional — Under Current Act)

Under Section 10 of the current Act, before initiating a formal inquiry, the IC may, at the request of the aggrieved woman, take steps to settle the matter through conciliation. Conciliation may not include any monetary settlement.

Note: The Amendment Bill 2024 proposes removing this conciliation option entirely, making all complaints subject to formal inquiry — pending enactment.

Inquiry Process

Under Section 11, the IC must complete its inquiry within 60 days of the written complaint. Both parties must be given an opportunity to present their case, following the principles of natural justice.

Report and Action

Within 10 days of completing the inquiry, the IC must submit a written report to the employer and the District Officer. The employer must implement the IC's recommendations within 60 days of receiving the report. Recommended actions include a written apology, warning, withholding of promotion or pay rise, or termination.

Note: The December 2025 Amendment Bill proposes reducing the employer's action timeline from 60 to 30 days — pending enactment.

Annual Reporting: IC Obligations and MCA Board Report Disclosures (2025)

Under Section 21 of the PoSH Act, every IC must prepare an annual report and submit it to the employer and the District Officer. The report must contain the number of complaints received in the year; number of cases disposed of; number of cases pending for more than 90 days, the number of workshops and awareness programmes conducted, and the nature of action taken by the employer on the IC's recommendations.

Effective 14 July 2025, the Companies (Accounts) Second Amendment Rules 2025 significantly expanded PoSH disclosure requirements for all companies. Board Reports must now include: the number of sexual harassment complaints received during the year; the number resolved; the number pending for more than 90 days; and the gender composition of the workforce (female, male, and transgender employees) as at the end of the financial year. Companies must also affirm compliance with the Maternity Benefit Act, 1961. This moves PoSH compliance from a one-line affirmation to a detailed, publicly accountable disclosure.

For listed companies, SEBI's Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015, additionally require the Board's report to include a statement on PoSH compliance, including complaint numbers and pending cases.

Penalties for Non-Compliance

Section 26 of the PoSH Act establishes the penalty framework. An employer who fails to constitute the IC, fails to act on its recommendations, or contravenes any provision of the Act is liable to a fine of up to ₹50,000 on conviction.

On a second or subsequent conviction, the penalty doubles (up to ₹1,00,000), and the employer may additionally face cancellation, non-renewal, or withdrawal of any registration, licence, or approval. The December 2025 Amendment Bill proposes raising the penalty to ₹2,00,000 and strengthening confidentiality enforcement; both are pending enactment. Non-compliance with the MCA 2025 Board Report disclosure requirements can also attract fines of up to ₹3,00,000 with potential licence cancellation for repeat violations.

Employer Obligations Beyond the IC

Section 19 of the Act specifies a broader set of employer duties that are independently enforceable:

Display the PoSH Act: The Act and IC member contact details must be displayed prominently at the workplace.

Conduct awareness programmes: Workshops, orientation, and sensitisation sessions for IC members and employees at regular intervals.

Provide assistance for filing complaints: Assist the aggrieved woman in filing a police complaint where the harassment constitutes a criminal offence under the Bharatiya Nyaya Sanhita, 2023.

Provide interim relief: During inquiry pendency, implement IC recommendations on leave (up to 3 months), transfer, or restraint orders.

Monitor third-party harassment: Take all steps to prevent harassment by clients, customers, suppliers, or contractors and provide assistance to the aggrieved woman.

LC facilitation: For organisations with fewer than 10 employees, facilitate complaints through the Local Committee (LC) and act on its recommendations identically to IC recommendations.

PoSH in a Hybrid and Remote Work Context

The definition of 'workplace' under Section 2(o) of the PoSH Act encompasses any place visited by an employee arising out of or during the course of employment. The Ministry of Women and Child Development has clarified that digital workspace, email, messaging platforms, and video conferencing constitute an extension of the workplace for PoSH purposes.

For organisations operating hybrid or fully remote models, the PoSH policy, the IC's jurisdiction, and the employer's obligations must be expressly extended to cover digital conduct and interactions on employer-provided or work-related platforms. Employers with distributed teams across multiple states must constitute a separate IC at each qualifying location; a single headquarters IC does not cover all branches.

Your PoSH Compliance Checklist 2026

IC Constitution & Documentation: Constitute a compliant IC at every qualifying location. Issue formal appointment orders with defined terms. Ensure ≥50% women membership and a qualified external member.

PoSH Policy: Draft and adopt a written PoSH policy covering the complaint process, IC procedures, digital workplace conduct, and confidentiality obligations. Accessible to all employees, including contract, temporary, and remote workers.

Workplace Display: Display the Act, IC member names and contact details prominently at every workplace. Update immediately when IC membership changes.

Mandatory Training: Annual awareness training for all employees. Separate IC capacity-building training on inquiry procedures, natural justice principles, and digital evidence.

SHe-Box Registration: Register the IC on the SHe-Box portal with current member details. Establish a protocol for responding to portal-routed complaints. Update registration within 7 days of any IC change.

Board Report PoSH Disclosure (MCA 2025): Prepare detailed PoSH disclosure for the Board Report: complaints received, resolved, pending > 90 days, and workforce gender composition. Mandatory for all companies effective 14 July 2025.

Annual IC Report: Prepare the prescribed annual IC report. Submit to the employer and District Officer. For listed companies, integrate PoSH disclosure into the Board's Annual Report as per SEBI LODR.

Digital Workplace Coverage: Extend the PoSH policy explicitly to all digital communication platforms used for work. Cover email, chat, video conferencing, and professional social media.

Complaint Register: Maintain a register of complaints, inquiries, outcomes, and actions taken. Subject to inspection by the District Officer and labour authorities.

Monitor Pending Amendments: Track the Amendment Bill 2024 and the December 2025 Bills. Proactively align IC processes, extended complaint timelines, documentation standards, and inquiry protocols ahead of formal enactment.

Official Sources & Further Reading

• Sexual Harassment of Women at Workplace Act, 2013 — Full text: indiacode.nic.in

• Ministry of Women and Child Development — PoSH guidance and SHe-Box portal: wcd.nic.in

• SHe-Box — Sexual Harassment electronic Box: shebox.wcd.gov.in

• SEBI LODR Regulations, 2015: sebi.gov.in

• Companies (Accounts) Second Amendment Rules 2025 (MCA): mca.gov.in

• National Commission for Women: ncw.nic.in

• PNAC PoSH Compliance Services: thepnac.com/services/posh-compliance-services

Is Your Organisation PoSH Compliant?

PNAC's HR advisory team supports organisations in constituting legally compliant Internal Committees (ICs), drafting PoSH policies, conducting mandatory training, and maintaining the annual reporting infrastructure that audits and regulatory inspections demand.

Explore PNAC PoSH Compliance Services → https://thepnac.com/services/posh-compliance-services

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