Updated on June 19, 2025 02:53:20 PM
The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013 is known as the POSH Act. It provides that in every organization that has more than 10 employees, there shall be an Internal Committee (IC) that will examine complaints of sexual harassment. A serious risk to both employee as well as employer interests is not reported by this committee—failure to address complaints, delays in inquiries, or failure to submit required reports.
Such non-compliance may result in legal and monetary exposure, such as penalties of up to ₹50,000 for organizations. In the event of repetition, the penalty may be more severe, which may also assume the form of revocation of business licenses or more severe scrutiny from the regulatory authority. Furthermore, a failure of proper reporting mechanisms renders safety standards in the workplace weak, breaks down the trust employees have for an organization and goes on to incur much damage to an organization's reputation. Given this background, this article examines inherent risks and penalties associated with non-reporting by the Internal Committee under the POSH Act and addresses the necessity of proactive measures in ensuring compliance and setting up an environment free from workplace harassment.
As the first contact to handle complaints of harassment, the ICC performs multiple functions that are of critical importance to the organization:
It receives complaints from employees who experience harassment.
It inquires into the complaint and, after due process, applies the principles of natural justice.
The Consequences of Non-reporting:
There are multiple importance of reporting:
There are the steps to ensure reporting:
The consequences of not reporting under the POSH Act are enormous and multilevel. Organizations that do not report may face penal action of the seriousness by courts, legal liabilities, and damage to reputations. Add to all this, the kind of a culture, that nonreporting would breed is the contaminated work environment, which destroys employee trust and morale.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
Frequently Asked Questions
The POSH Act is an Indian law that seeks to regulate sexual harassment against women in the workplace. The Act thereby demands the constitution of ICCs in the organization for dealing with complaints appropriately.
Internal Committee: The internal committee is one of those obligatory bodies in the workplace with ten or more employees, responsible for receiving and redressing complaints of sexual harassment. Such a committee conducts inquiries and recommends appropriate action based on its findings.
Failure to report an incident brings them into the legal sanctions of both the employee and the employer. The employee misses the opportunity to receive a remedy under the POSH Act, while penalties are inflicted on the employer in the form of fines and possible court action.
The amount of fine for a first-time offense of non-compliance with the POSH Act can go up to ₹50,000 by employers. In case of repeated offenses, licenses to the business can be canceled or high fines are imposed.
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