Essential Rules of POSH Policy: A Complete Overview

Updated on June 19, 2025 02:53:21 PM

POSH Act, 2013 also prescribes some fundamental guidelines for a safe and harassment-free workplace for women. POSH policy demands that every organization with ten or more employees make necessary provisions to form an internal committee to deal with sexual harassment complaints. It has to conduct fair inquiries, maintain confidentiality, and recommend appropriate action.

The policy mandates employers to have an explicit anti-sexual harassment policy clearly listing prohibited activities, procedures for lodging complaints, and consequences of their violation. Annual awareness programs and training of employees working in the Internal Committee, among others, are also required.

Besides, the POSH Act calls for an employer to maintain a safe environment at work by ensuring that no threat of harassment or retaliation threatens women's ability to work. The IC must submit annual reports on how many complaints were registered and what actions were taken.

Non-compliance with these POSH rules can continue to lead to fines, reputational damages, and, in extreme cases, revocation of business licenses. Thus, by following such rules organizations do not only ascertain the safety of the employees but also set up a workplace that is respectful as well as productive.

Understand Sexual Harassment under POSH.

Under the POSH Act, 2013, Sexual Harassment is defined as any unwelcome sexually explicit verbal or physical conduct constituting a condition of submission to, conduct in which such submission is either explicitly or implicitly a term of consideration for, or a factor in decision affecting an individual's employment. It encompasses various forms of physical and non-verbal and verbal acts including unnecessary physical contact, observing or displaying obscene or pornographic materials, sexual innuendos, suggestive remarks on anatomical or sexual aspects, and unwelcome advances.

Such protection under the POSH Act classifies sexual harassment into two categories: quid pro quo, which states that there is a demand for sexual favors in exchange for job benefits, and a hostile work environment, wherein harassment itself creates a stressful or offensive environment. This protection is explicitly extended to women both in organized and unorganized sectors and even extends to places of work like offices, factories, shops, and electronic spaces like emails and messaging platforms. Therefore, under POSH, an Internal Committee needs to be formed in all organizations that have ten or more employees to address complaints. It will conduct inquisitions into complaints and recommend action against the perpetrator if harassment is confirmed.

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What is the Applicability of the POSH Act?

The POSH Act applies to:

  • All workplaces in both the organized and unorganized sectors.
  • Private sector and public sector units, government authorities, NGOs, educational institutions.
  • It covers all female employees, from regular, temporary, contractual, and outsourced workers.
  • The Act also covers cases of harassment in connection with travel for work purposes or concerning meetings or anything related to work.
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What are the Key Rules and Provisions of the POSH Policy?

  1. Obligations of Employers
    The POSH Act imposes significant obligations upon employers to ensure that an organization makes a workplace safe for women. Some of the major obligations are listed below:
    • Composition of the Internal Committee (IC): Organizations with 10 or more employees must form an Internal Committee to address complaints of sexual harassment. The Internal Committee plays a vital role in efficiently and fairly redressing complaints.
      The employer should design a POSH policy within the organization, indicating how to file complaints on violations and the procedure of conducting inquiries and consequences observed in case of violation. The document has to be communicated to all the employees.
      This is with regard to awareness programs. The employers must arrange seminars and workshops for their employees about sexual harassment in the workplace, the rights of employees, and the redressal of grievances procedure. They must orient their Internal Committee members on how complaints are processed.
    • Annual Reports Submissions: The employers are supposed to submit an annual report to the District Officer stating the complaints received and the action taken by the IC. It helps compliance with the POSH Act and transparency.
  2. Formulation of the Internal Committee (IC)
    A crucial element through which the POSH Act functions is the Internal Committee. The IC takes complaints, makes an inquiry, and advises on a course of action. The Members are to be as follows:
    • There shall be a Presiding Officer: A senior female employee shall preside over the committee.
    • Members: There shall be not less than two members who either have legal knowledge or have experience dealing with problems relating to women or sexual harassment.
    • External Member: There should also be an external member nominated by the committee from an NGO or an organization working for women's causes or an organization holding expertise over sexual harassment complaints for balancing the aspect of fairness.
    • Tenure: The members of the Internal Committee are to be appointed for three years. There should not be any lacuna in filling up any vacancy in the internal committee.

    There is, therefore, a step-wise complaint filing process specified in the POSH policy. The complainant shall file a written complaint before the Internal Committee within three months from the date of the alleged incident. Notwithstanding any such reasons whatsoever, if the complainant cannot submit the complaint at any time, then her representative can do so on her behalf. The time provided above may also be extended for a further period of three months if the complainant provides any valid reason for such delay.

    • Key points:
    • The complaint must narrate the incident and the concerned parties.
    • The complainant can even seek relief during the process of inquiry for instance change of place of work or leave, During this period.
  3. Procedure for the Inquiry by the Internal Committee
    Upon receipt of a complaint, the IC is bound to hold a formal, detailed, and appropriate inquiry under the prescribed procedure:
    • Timeline for Inquiry: The IC shall conduct the inquiry within 90 days from the receipt of the complaint.
    • Unbiased and Balanced Investigation: The IC must carry out such an investigation that is both fair and unbiased and held with sensitivity and confidentiality and ensures that the identity of all parties concerned with the case should not be disclosed to anyone.
    • Equal Opportunity for Both the Parties: The opportunity must be equal for the complainant as well as the respondent to present his case, evidence, or witnesses.
    • Confidentiality: The POSH Act clearly states that the inquiry process should not violate the confidentiality of the complaint, respondent, and witness. The identity of the complainant, respondent, and witnesses must be maintained confidential to avoid victimization or retaliation.
    • Actions Post-Inquiry
      The Internal Committee forwards its findings in the form of a report to the employer within 10 working days from the date of completion of the inquiry. The following actions can be recommended after the findings:
    • Disciplinary Action: If the IC resolves to realize that sexual harassment has indeed occurred, then it can recommend the following disciplinary actions against the accused person:
    • A written apology to the victim.
      Suspension or termination of employment.
    • Counseling or rehabilitation of the harasser.
    • Monetary Compensation: If the harassment has caused emotional distress or the victim's livelihood is lost, then the IC can further recommend monetary compensation to be provided by the employer.
    • The IC may also recommend organizational changes or preventive measures such as:
      • Compulsory training programs for the workers.
      • Changing the organization's policies at the workplace so that they are safe.
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What are the Penalties for non-compliance under the POSH Act?

The POSH Act provides for strict penalties for employers who fail to comply with its provisions. Non-compliance can result in the following consequences:

  • Monetary penalties: may be imposed against employers who fail to constitute the Internal Committee, hold inquiries, or comply with the prescripts of the POSH policy. For first-time offenders, such violations incur penalties up to ₹50,000. In cases of repeat offenses, the employer may be liable to receive higher monetary penalties and undergo other legal repercussions.
  • Cancellation of Business Licenses: In extreme cases, repeated failure to comply with the prescripts of the policy might call for a cancellation of business licenses or registration of the organization.
  • Legal Liability: Employers would also experience common law actions as the employees would be made liable for failure to do enough to safeguard the employees against harassment, or failure to handle complaints effectively.
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What are the Challenges in Implementing the POSH Policy?

Although the POSH Act is very holistic, the implementing process can be cumbersome and hence includes the following obstacles:

  • The rights bestowed and the role played by the IC are not known among the employees.
  • Cases are also under-reported in this context due to fears of retaliation or stigma.
  • The investigations made by the members of IC become either biased or wrong due to weak training.
  • It is challenging to guarantee confidentiality in an investigation process.
  • An employer must establish the above to overcome the challenges through fostering trust, periodic awareness sessions, and training of all employees as well as IC members on the subtleties of the POSH Act.
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Conclusion

The POSH Act and the rules thereof are extremely important for safeguarding female workers at work from sexual harassment. Compliance with these provisions of the Act, thus not only a legal requirement but also marks a step forward toward a safer, more respectful, and inclusive workplace. The POSH policy's implementation provisions, include setting up an Internal Committee, spreading awareness, and conducting fair investigations.

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Frequently Asked Questions

What is the POSH Act?

The POSH Act, an abbreviation for the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013, has been enacted to protect women against sexual harassment at workplaces and, therefore, enhance safety and respectfulness in working spaces.

What are the time limits for filing a sexual harassment complaint?

A complaint must be filed within three months from the date of the incident or the last incident in a series of incidents. The Internal Committee can extend this period by another three months if it finds reasonable grounds for the delay.

Is confidentiality important during the POSH inquiry process?

Yes, confidentiality is of utmost importance. Identities of complainants, respondents, and any witnesses are to be kept confidential for the whole process. That would include the complaint content, evidence, and findings of the Internal Committee.

Are there provisions for male complaints under the POSH Act?

The POSH Act specifically aims at protecting women in the workplace from sexual harassment. Still, men and others belonging to the transgender category can look into some other provisions of Indian law as relief in case they are harassed.

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