Home ICC Why POSH compliance is more than just an HR checklist

Why POSH compliance is more than just an HR checklist

November 26, 2025

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This article is written by Adv. Ankit Tiwari. Partner at Lawyers Space and a Corporate Lawyer specialising in POSH compliance, audits and workplace policy frameworks. With over six years of experience, he helps organisations build a legally sound, respectful and harassment free workplace while strengthening their overall compliance culture.

Table of Contents

Introduction

As we know, the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, which is also known as the POSH Act, is not just paperwork in workplaces. It is a very important constitutional protection of a woman’s dignity working in a corporate office. This Act was begun from the famous case of Vishaka v. State of Rajasthan, (1997). The POSH Act placed a statutory duty on employers, ICCs, and district authorities to prevent sexual harassment against women in workplaces. It also obligates the employers, ICCs, and district authorities to conduct an investigation and provide a remedy to the victim. Though many organisations treat the Act as just paperwork but the law gives a clear process of implementation.

So, let’s discuss how a firm should use the POSH Act that will actually solve the problem and minimise the risks of offences against women.

Legal framework: The main purpose of the Act.

The statute and its provisions give multiple obligations:

Constitution of ICCs

Section 4 of the Act says that the organisation will form an Internal Complaints Committee consisting of ten or more members. The main role of the committee is to launch complaints if there is a breach, conduct an investigation and provide a remedy to the victim.

Employer duties

Section 19 of the Act talks about the obligations of the employers. Their responsibilities are generally to organise awareness programmes and assist the ICCs in procedural steps. And to maintain fairness and confidentiality.

Reporting & disclosure

Section 21-22 says that the ICCs will submit an annual report to the employer and the district officer. There are many recent amendments to the Act’s provisions that expand the scope of the statute.

Statutory baseline

Many organisations are being confused between constitution and effectiveness. The Act talks about a clear and active process. It talks about spreading awareness, interim relief, a timeline for inquiry and annual reporting. On the other hand, legal compliance requires documented, functioning processes and a proper legal backup, not just a committee.

The implementation challenge: According to the data

National and sectoral data are incomplete, but instructive. According to the Centre for Economic Data & Analysis (CEDA), Ashoka University, the number of reported complaints in India have increased over the last decades. But the number of reported cases is much higher than the number of solved cases. I think it shows improvement in awareness, but there is still a gap in resolution.

The Ministry of Corporate Affairs amended the Companies (Accounts) 2025 Rules, showing that the new practice requires detailed disclosures of reported complaints, resolved, pending (over 90 days) cases and workforce gender composition.

Data reality

The number of raw complaints is huge. An initial rise in complaints is generally a sign of trust building, but there are so many unsolved cases that clearly indicate systematic failure. The people who are analysing the report must keep a close eye on both the number of resolved cases and complaints made, including repeat offenders, and interim relief usage to understand the situation better.

Judicial enforcement: courts demand substance over form

The judicial decisions in recent years clarify that the ICC, on paper, means nothing if the inquiry and resolution process is weak.

Courts have held in so many cases that no perpetrators will be saved or shielded for their seniority or prestige. They cannot use their power or position to dominate a woman in the workplace. The judiciary has ordered independent probes and even Special Investigation Teams to investigate cases where internal enquiries were obstructed. For example, the Madhya Pradesh High Court in 2025 ordered an SIT to investigate allegations against the Vice-Chancellor of Rani Durgavati Vishwavidyalaya when the court found there were material gaps and an unexplained absence of CCTV evidence.
High-profile workplace criminal proceedings (e.g., the KEM Hospital matter in Mumbai, 2025) show that the court denies anticipatory bail to influential accused. Because in cases like this, there is always a chance of evidence tampering and frightening the victim.

Judicial trend

Judicial tolerance for technical compliance has less scope now. Employers cannot rely on forms alone. During the review process, if the committee finds that evidence was not preserved properly, interim relief was ignored, or there is a dominant influence of the management, the courts intervene directly.

Why the checklist mentality fails in practice

Common failure modes:

Superficial training

One-hour webinars do not change norms. The organisations need to take an approach towards adult learning and scenario-based programmes.

Under-resourced ICCs

Lack of upgraded investigation skills, absence in record keeping and lack of procedural fairness leave a significant gap. These gaps need to be fulfilled to meet the purpose of the Act.

Breach of confidentiality and fears of reprisals

Victims often fail to trust in HR-led procedures. Because they sometimes seem to appear that they have conflicting intentions. Also, the HR works for the company, so in some cases, they can be biased about an incident. And it can cause negative consequences for the victim.

Ecosystem blind spots

The employees need to interact with contractors, interns, vendors, and visitors. It leaves a gap where any incident can happen at the act of a third party. There is no strict process of resolution mentioned in the Act for situations like this, so I think it’s the organisation’s responsibility to come up with some new features in their internal policy.

Lack of outcome metrics

The organisation considers how many sessions they took on POSH and how quickly they constituted the ICCs. But I think their first priority should be the resolution of complaints, interim relief provided and statistics on repeat offenders.

Invalid in the practice

The core structure of complaints is mentioned in the Act. Still, there are so many gaps when it is time to implement the law. I think it’s the failure of the management. To fix this issue, the organisation need to make a systematic investment plan. Like, Appointing Independent members, keeping audit records, taking enforceable temporary measures, and hiring skilled investigators can be a good decision to regulate POSH compliance. If the organisation ignores it, it can face serious reputational loss, and it can also lead to litigation.

Reframing POSH as governance and risk management

Board oversight & KPIs

The ICCs need to submit a report on the number of complaints received, median resolution time, pending cases >90 days, interim relief uptake, and repeat offences on a quarterly basis. The MCA 2025 disclosure amendment increases the need for such reporting.

Leadership accountability

In case of POSH complaints, people from higher positions should prioritise non-interference, ICC recommendations, and visible action to make the implementation prominent. It will help to build trust in the organisation.

Expert ICCs

Certified trauma-informed training is really necessary for staff members. The management needs to think about strong, independent membership and rotation. Also, SLAs for acceptance and interim support.

Analysis from the outside

Every year, an independent review of a sample of ICC files and procedures is conducted to understand the growth and movements.

There should be an internal dashboard that will help to maintain the data, but we have to keep in mind that the privacy of the victim is a top priority.

Strategic payoff

There are so many benefits of adopting this approach, like better reporting to show trust, faster resolutions, fewer offenders and better employee branding that will help to reduce the number of offences. And the most important thing is that the cost of implementation is much higher than legal, reputational and operational expenses in a high-profile failure.

Operational plan 12-month plan (actionable steps)

The plan is structured in four steps to make the complaint process stronger. Let’s begin with the first step: the first and most important step should be taken is I think, governance and diagnosis, which means briefing the board, conducting a baseline audit of the current system, fixing the policy, and ensuring the internal committee meets all legal requirements.

The next phase (Months 3–6) is under development. Here, providing scenario-based training for committee members and managers, and creating simple tools like contract templates and induction, will help to make people aware of the problem.

Between Months 6 and 9, pilot and measure the success by launching an anonymous safety survey and dashboard. And also, having an external group audit will be effective. It will handle recently filed complaints.

Finally, in the last quarter (Months 9–12), report and embed these changes permanently.

Implementation hazards

Pilot paralysis is one of the most common failures. Organisations conduct a single pilot, declare it successful, and then switch back to passive maintenance. Measurement of needs, reallocation of resources, and ongoing executive attention are necessary to make real change.

Emerging issues: remote work, ecosystem coverage and gender scope

Remote & hybrid contexts

The Act’s definition of “workplace” (and judicial interpretation) covers work-related events and locations. So, in the remote work culture, there is a chance of harassment via messaging apps, video calls and client sites. Here, the employer needs to confirm digital conduct policies, such as an evidence preservation process and remote reporting channels.

Ecosystem coverage

In contractual work scenarios, induction and third-party training are very important to avoid problems during interaction with female staff.

Gender scope

The Act uses “aggrieved woman”; debates about gender-neutral redress continue. Many employers extend the policies to make their use more significant. It sometimes provides more effective coverage for the victim and covers all genders.

Policy nuance

The legal team of the organisation should monitor reform proposals, but they should also ensure a timely resolution to protect the victim. I think adopting special internal rules and a strong process for resolution can make a difference.

What non-compliance costs you

Judicial intervention

The courts can order a special team to investigate POSH cases if there is institutional ignorance by the management (RDVV and KEM matters are contemporary examples).

Regulatory exposure

The 2025 Companies (Accounts) Rules amendment helped to increase disclosure obligations of the internal committee. It gives a chance for board scrutiny.

Reputational harm

Media coverage of an incident can spread wrong news. It will hamper the brand’s name and reputation. It can also ruin their client relations, costing a lot of money.

Operational disruption

A very long-term investigation or getting involved in complex litigation can cause significant loss to the management.

Cost calculus

The correct board question is not “how much will compliance cost?” but “what will failure cost us?”

The high-profile failure of POSH governance often costs huge reputational and operational costs that surely exceed the required investment for strong POSH governance.

Conclusion — Embedding POSH in Organisational Governance

The evolution of the POSH Act over the past decades has revealed one truth that compliance is achieved through culture and practice. The Law is never just a symbol. It always represents a commitment to maintain equality, safety, accountability and fairness at every level. The recent judicial interventions and amendments by the Ministry of Corporate Affairs on enhanced disclosure surely show that passive adherence to the statutory text is not enough. Boards, compliance officers, and HR leaders must treat POSH as an extension of corporate governance and risk management frameworks, rather than treating it as an HR initiative. An effective application of the provisions mentioned in the Act will make the organisation more productive and successful, increasing its value and dignity.

At the end, compliance is not just the number of workshops conducted or the number of policies uploaded; it means that employees, regardless of gender or position, feel safe to report misconduct. Accepting POSH governance is not just a legal framework; I believe it is an ethical decision that shows institutional maturity. The law and judiciary continue to become stricter, so organisations that are taking much-needed approaches will stand stronger tomorrow. Not only as a legally binding entity but as a workplace that ensures fairness and justice.

Frequently asked questions:

Does the Act give protection to male employees in case of sexual harassment?

No, the POSH Act, 2013, presently, the Act’s purpose is to protect female employees in workplaces. But some organisations make similar provisions for male employees in their internal policies to uphold equality and fairness.

Is an employer liable if the harasser is not an employee but a client or vendor?

Yes, the Act says that it’s the employer’s duty to protect the employees from being harassed by a third party. The Internal Committee can still inquire into cases like this; they can recommend suitable action against the offender, sometimes by restricting their access to the premises.

What are the consequences of not forming an internal committee?

Under section 4 of the Act, if an organisation fails to form an internal committee, it can cause them a penalty up to ₹50,000. And under section 26 of the POSH Act, a repeated failure can lead to cancellation of the business licence and registration

References

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