POSH Act 2013 — Workplace Sexual Harassment Compliance, Internal Committee and Complaint Procedure

POSH applies to every 'workplace' in India where an 'aggrieved woman' may be employed or visit for work. The definitions are deliberately wide.

Workplace (Section 2(o)) includes:

• Any private sector organisation or office.
• Government department, organisation, undertaking.
• Hospital, nursing home.
• Educational institution.
• Sports complex.
• Place visited by an employee in the course of employment (including transportation).
• The dwelling place or house for domestic workers.
• Any place visited for work, even outside the principal place of business.

Employer (Section 2(g)):

• For a workplace established as a private sector organisation — the head, CEO, MD, branch head; for a partnership — partner(s); for an individual proprietorship — the proprietor.
• For a government workplace — the head of department/ministry/organisation.
• For domestic workers — the household.

Threshold for IC constitution (Section 4):

• Every workplace with 10 or more workers must constitute an Internal Committee.
• Workplaces with fewer than 10 — the complaint goes to the Local Committee constituted by the District Officer under Section 6.

Aggrieved woman (Section 2(a)) — any woman, whether employed or not, alleging sexual harassment at the workplace. Includes regular employees, contract workers, trainees, apprentices, daily wagers, interns, visiting professionals, and women who visit for work.

Section 4 — every workplace with 10+ employees must constitute an IC, with these features:

Composition (Section 4(2)):

• Chairperson — a woman employee at a senior level. If no senior woman is available, a senior woman from another office of the same employer.
• Two members from amongst the employees, preferably committed to women's issues / with legal knowledge.
• One external member from an NGO, association committed to women's cause, or a person familiar with sexual harassment issues. At least one-half of the IC's members must be women.

Tenure — three years from the date of nomination.

Powers — the IC has the powers of a civil court under the CPC for:

• Summoning and enforcing attendance of any person and examining him on oath.
• Requiring discovery and production of documents.
• Any other matter prescribed.

Constitution failures that void IC findings:

• IC with no external member — recurring lapse; renders inquiry void.
• IC with male majority — direct violation of Section 4(2); voidable.
• IC chairperson not at sufficiently senior level — has been held grounds to challenge findings.
• IC members trained / certified — not statutorily mandatory but absence is a vulnerability in subsequent challenge.

Multiple workplaces — Section 4(1) explicitly requires a separate IC at every administrative unit or office, not one IC for the whole company. Many large companies fail this — having one corporate-HQ IC for branches in 20 cities is non-compliant.

Annual report (Section 21) — the IC must submit an annual report to the employer + District Officer, disclosing (anonymised) number of complaints received, disposed, pending, and action taken. Non-submission is a basis for penalty under Section 26.

Step 1 — Filing the complaint (Section 9):

• Written complaint by the aggrieved woman, or with her assistance from any other person.
• Filed within three months of the incident (extendable by another three months on sufficient cause).
• 6 copies, with supporting documents and names + addresses of witnesses.
• Confidentiality is required throughout.

Step 2 — Conciliation (Section 10):

• Before commencing inquiry, the IC may, at the request of the aggrieved woman, take steps to settle the matter by conciliation.
• Settlement cannot be monetary.
• If conciliation succeeds, the IC records the settlement; no further inquiry needed.
• If conciliation fails, formal inquiry proceeds.
• Critical: conciliation requires the aggrieved woman's written request. The employer/IC cannot force conciliation.

Step 3 — Inquiry (Section 11):

• Conducted by the IC, applying principles of natural justice.
• Both parties heard.
• Documents produced.
• Witnesses examined and cross-examined.
• The inquiry must be completed within 90 days (Section 11(4)).

Step 4 — Interim relief during inquiry (Section 12):

• The IC can recommend transfer of the aggrieved woman or the respondent.
• Grant leave to the aggrieved woman of up to 3 months (in addition to her ordinary leave).
• Any other relief at the IC's discretion.

Step 5 — Report and recommendations (Section 13):

• Within 10 days of completing inquiry, the IC submits a report to the employer (and complainant's request, to her).
• If allegations proved — the IC recommends action to be taken under Section 13(3): treating the act as misconduct under service rules / dismissal / withholding promotion / etc. The employer must act on the recommendation within 60 days.
• If allegations not proved — the IC may recommend that no action is required.
• If false / malicious complaint proved — the IC may recommend action against the complainant (Section 14).

Penalties for non-compliance (Section 26):

• ₹50,000 fine for first contravention (not constituting IC, not displaying penal consequences, not filing annual report, not providing facilities to IC).
• Twice the previous penalty for subsequent contraventions, plus cancellation of licence/registration.
• The employer can be held personally liable (companies — directors).

Aureliano Fernandes v State of Goa (2023) 9 SCC 308 — the Supreme Court found widespread non-compliance with POSH and issued directives binding on all states and central government:

1. Every Government Ministry / Department / PSU must verify IC constitution and publish details on the website.
2. Every employer (private + government) must publish IC composition, contact details, and procedure on the workplace website / notice board.
3. State Governments must:

• Constitute and adequately staff the Local Committee in every district under Section 6.
• Hold awareness programmes through district legal services authorities.
• File compliance reports with the Supreme Court.

1. Universities and educational institutions must constitute IC and ensure faculty + student awareness.

These directives have triggered increased compliance audits by State Women's Commissions and Labour Departments. Practitioners should ensure clients are POSH-compliant before any HR audit; deficiencies discovered during routine inspections now have direct penal consequences.