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POSH Compliance and the Legal Risks of Failing to Act

POSH compliance

Table of Content

Introduction
What is Sexual Harassment?
Types of Sexual Harassment at the Workplace
What is POSH Compliance?
Why POSH Compliance is Non-Negotiable?
Is POSH Committee Mandatory?
POSH Compliance Requirements
Why Confidentiality Matters in POSH Proceedings?
POSH Compliance Checklist
How Vishaal Consultancy Services Can Help
Conclusion

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Introduction

In today’s world, workplaces are more than just places that prioritise productivity; they should also be able to create safe and respectful environments for everyone, especially women in their workforce. It’s not just a moral duty for employers and business owners, it’s also a legal requirement. Yet, harassment issues continue to arise in various forms, and the consequences of ignoring them can be severe—not only morally but also legally and financially. That’s where POSH compliance steps in.
Whether you’re an HR manager, a business owner, or a start-up founder, understanding the concept of POSH compliance is not optional. It’s essential. It’s not just a legal obligation; it’s a key part of being a responsible leader.

In this blog, we’ll dive into what is POSH compliance, the legal risks of not adhering to it, and provide a straightforward POSH compliance checklist to help you stay compliant with the law.

Before we get into the POSH compliance, it is important to understand what sexual harassment is.

What is Sexual Harassment?

While many associate sexual harassments with explicit actions, it often shows up in far more subtle and insidious ways. A co-worker who frequently “jokes” about someone’s appearance, a manager who consistently invades personal space, or a colleague who sends suggestive memes under the guise of humour, all these may not raise alarms immediately, but over time, they create a hostile work environment.

Such behaviour is difficult to call out, especially when it’s disguised as friendliness, flirtation, or casual banter. Victims often feel confused, gaslighted, or unsure if their discomfort is even valid. Over time, this affects their mental health, job performance, and fosters a culture of silence.

According to a 2019 survey by Indian Bar Association, over 68% of respondents who experienced sexual harassment at work said the behaviour was verbal or non-physical, yet it left a lasting psychological impact.

This is precisely why the POSH Act covers both verbal and non-verbal misconduct—to acknowledge that harassment isn’t just about what’s seen, but also about what’s felt.

Under the POSH Act, sexual harassment includes any unwelcome acts or behaviour (whether directly or by implication) such as:

  • Physical contact or 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
The key word here is ‘unwelcome’. If the behaviour makes the recipient uncomfortable, it qualifies as harassment, regardless of the intent.

Types of Sexual Harassment at the Workplace

Sexual harassment can take many forms. Broadly, it is categorised as:

1. Quid Pro Quo Harassment

“You do this for me, and I’ll do that for you”. This form involves requests for sexual favours in exchange for job benefits, promotions, or protection from demotions.

2. Hostile Work Environment

Repeated offensive jokes, sexually suggestive comments, or behaviour that creates a toxic atmosphere, even if not directed at a specific individual.

3. Verbal Harassment

Inappropriate comments, jokes, innuendos, or unwanted flirting.

4. Non-verbal Harassment

Staring, leering, whistling, or sharing obscene material.

5. Physical Harassment

Touching, patting, or invading personal space inappropriately.
POSH is designed to address all these forms, both overt and subtle.
Now that we’ve explored what can constitute sexual harassment in the workplace, let’s take a closer look at the framework that has been thoughtfully put in place to prevent it and ensure a safe, respectful environment for all.

What is POSH Compliance?

POSH stands for Prevention of Sexual Harassment, specifically referring to sexual harassment at the workplace. It was formalised under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 in India.
In simple terms, POSH compliance refers to a company’s adherence to the rules and guidelines laid out in this Act. These rules are designed to ensure that every workplace has systems in place to prevent, address, and resolve incidents of sexual harassment in a structured, fair, and confidential manner.
POSH compliance
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Why POSH Compliance is Non-Negotiable?

You may think, “But my company is small,” or “We’ve never had an incident in our company.” But POSH compliance isn’t based on incident history. It’s a legal mandate for all organisations in India with 10 or more employees, with at least one female employee.
Here’s what happens when you ignore POSH:
  1. Legal penalties: Non-compliance can lead to fines up to ₹50,000—and repeat violations can lead to cancellation of your business license.
  2. Reputational damage: One unaddressed complaint can spark public backlash or media coverage, damaging your brand image.
  3. Operational risks: Employee morale suffers in a toxic environment, which impacts productivity, retention, and hiring.

Is POSH Committee Mandatory?

Yes, having an Internal Committee (IC) is mandatory under POSH if your organisation has 10 or more employees with at least one female employee, regardless of whether they’re on payroll, interns, freelancers, or consultants.

The Internal Committee (IC) must:

  • Be chaired by a senior woman employee
  • Include at least one external member (from a legal or NGO background)
  • Maintain a 50% women representation
Without this committee, even the best anti-harassment policies are toothless. The IC is responsible for receiving, investigating, and resolving complaints.
POSH compliance
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POSH Compliance Requirements

To meet posh compliance, your organisation must fulfil the following requirements:
  1. Constitute an Internal Committee (IC)
  2. Draft and implement a POSH policy that is visible and accessible to all employees
  3. Conduct regular awareness sessions and employee sensitization programs
  4. Train the IC members on how to handle complaints and investigations fairly
  5. File an annual POSH report with the District Officer
  6. Maintain confidentiality throughout the complaint and investigation process.

Why Confidentiality Matters in POSH Proceedings?

Confidentiality is a cornerstone of the POSH compliance. Here’s why it’s crucial:
  • Protects the dignity and privacy of the complainant and the accused
  • Prevents workplace gossip and retaliation
  • Encourages more victims to come forward
  • Ensures a fair and unbiased inquiry
Disclosure of details, whether by HR, management, or committee members, can lead to legal consequences. It’s not just an ethical breach; it’s a statutory violation.
To stay compliant and protect your organization, it’s essential to ensure your POSH framework is both active and effective. Here’s a quick and actionable POSH compliance checklist for your business

Not sure if you’re POSH compliant?

Get in touch today!

POSH Compliance Checklist

Here’s a quick and actionable POSH compliance checklist for your business:
  • Internal Committee (IC) formed and trained
  • POSH Policy documented, displayed, and communicated
  • Regular employee awareness and IC training sessions conducted
  • Annual report submitted to District Officer
  • Grievance redressal system active and confidential
  • Records maintained as per legal guidelines

What did Companies do Before POSH Compliance was Mandated?

Before the POSH Act came into effect in 2013, there was no formal legal structure governing sexual harassment in Indian workplaces.
  • Some companies had informal grievance mechanisms
  • Most lacked defined procedures, awareness programs, or trained committees
  • Victims often stayed silent due to fear, stigma, or lack of recourse
  • Justice was subjective, often left to the discretion of managers or senior leadership
The landmark Vishaka Guidelines, laid down by the Supreme Court in 1997, were the first real framework. But they weren’t enforceable by law until the POSH Act made compliance mandatory.
To understand the impact of companies prioritising POSH compliance and the Indian judiciary’s role in upholding this framework, let’s look at a recent case that made headlines when the court reinforced key principles of workplace safety and accountability.
What is Sexual Harassment

Case Study

What Happened:

In January 2025, a leading Indian IT firm faced serious allegations of workplace sexual harassment. Three female employees reported a senior supervisor for:

  • Unwelcome physical contact (e.g., touching shoulders, standing too close)
  • Insistent handshakes
  • Inappropriate personal questions about menstrual cycles
  • Asking an employee to remove her jacket for a measurement, despite verbal confirmation

Internal Action:

The Internal Complaints Committee (ICC) investigated and found the supervisor’s behaviour in violation of the POSH Act.

Court Intervention:

Though a labour court initially overturned the ICC’s findings, the High Court stepped in and reinstated them, sending a strong message on workplace safety.

Legal Takeaways:

  • The court emphasised that the impact of behaviour matters more than the intent
  • It applied the “reasonable woman” standard to assess discomfort
  • It reinforced that unwelcome actions qualify as harassment, even if seemingly minor

Why It Matters:

This case underscored the critical importance of robust POSH mechanisms. Without them, companies risk legal consequences, reputational damage, and, most importantly, failing to protect their employees.

How Vishaal Consultancy Services Can Help

At Vishaal Consultancy Services, we’ve helped companies across sectors simplify their compliance journey. From setting up Internal Committees to conducting awareness sessions, we provide end-to-end support for POSH compliance.
Not sure where to begin? We audit your current systems, identify gaps, and offer practical solutions to ensure you’re not just legally compliant—but also fostering a culture of respect and safety.
POSH compliance

Conclusion

Sexual harassment at the workplace is a sensitive yet serious issue, and even slightest ignorance does not have any excuse under the law. POSH compliance is not a one-time checkbox exercise. It’s about building trust, encouraging accountability, and protecting your people.

By acting proactively, you’re not only avoiding legal risks, you’re also creating a better, more ethical workplace that promotes a positive culture, retains and attracts talent.

If you’re looking to get compliant with POSH or any other statutory compliance, Vishaal Consultancy Services is here to support you.

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