POSH Accountability Redefined: Is Your Organization Ready for Judicial Audit?

POSH ACCOUNTABILITY REDEFINED: ARE YOUR RECORDS READY FOR JUDICIAL AUDIT?

The post-enactment phase of India's Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act) marks a decisive transition — from simple compliance to structural transparency and stringent enforcement. This evolution is being driven by significant interventions across legal, judicial, and digital domains.

LEGAL & CORPORATE ACCOUNTABILITY: MANDATORY DISCLOSURES

The most impactful shift in corporate governance is the move towards mandatory, data-driven POSH disclosures at the board level.

Earlier Compliance

Companies were often only required to make a one-line statement confirming the constitution of an Internal Committee (IC) in their Directors’ Report under the Companies Act, 2013.

The Shift to Transparency

Amendments by the Ministry ofCorporate Affairs (MCA) now mandate detailed disclosures in the Board’s Report — requiring specific data points that promote genuine accountability.

Mandatory Disclosures in the Board’s Report (Revised Rule 8(5)):

  • Complaints Received: Total number of sexual harassment complaints received during the financial year.
  • Cases Disposed Of: Number of cases successfully resolved.
  • Pending Complaints: Number of complaints pending inquiry for more than 90 days.
  • Employee Gender Composition: Breakdown of employees by gender (men, women, transgender persons).

 IMPLICATIONS FOR ORGANIZATIONS

This amendment makes compliance demonstrable and measurable.
Failure to provide correct or complete disclosure can attract regulatory scrutiny and reputational damage.

Organizations must:

  • Maintain accurate and timely complaint data.
  • Ensure ICCs adhere to the 90-day inquiry timeline.
  • Standardize documentation and procedures across offices and subsidiaries.

CONSEQUENCES OF NON-COMPLIANCE

Failure to meet disclosure obligations attracts penalties under both the POSH Act and the Companies Act, turning POSH compliance into a critical business and governance metric.

JUDICIAL PUSH: COMPLIANCE AUDITS AND ENFORCEMENT

The Supreme Court of India has issued landmark directives that transform the compliance framework from voluntary adherence to mandated, auditable action.

The Aureliano Fernandes v. TheState of Goa (2023)

The Court affirmed that POSH compliance is a constitutional duty, not a mere statutory formality.

Key Directives for All Employers/Institutions:

  • Mandatory ICC Constitution: Every workplace with ≥10 employees must form an ICC.
  • External Member: ICC must include an external member with expertise in women’s issues or law.
  • Periodic Training: All ICC members and relevant personnel must undergo regular training.
  • Mandatory Inspections & Audits: District Officers and Labour Commissioners to conduct routine inspections and surveys.
  • Deadlines & Penalties: Non-compliance may lead to strict penalties, including cancellation or non-renewal of business licenses (e.g., deadline Sept 28, 2025).

DIGITAL REDRESSAL & MONITORING: THE SHe-BOX EXPANSION

The SHe-Box (Sexual Harassment electronic-Box) portal, launched by the Ministry of Women and Child Development (MWCD), has evolved into a national compliance and redressal ecosystem.

Core Features

  • Single-Window Platform: Enables women from all sectors to lodge complaints online.
  • Real-Time Tracking: Automatically forwards complaints to the relevant IC or LC.
  • Compliance Control Tower: Serves as a national compliance repository for the government.

Impact and Significance

  • Empowering the Unorganized Sector: Bridges access gaps for women in informal workplaces.
  • Strengthening Judicial Oversight: Supports nationwide compliance audits and enforces the 90-day inquiry timeline.
  • Digital Traceability: Creates a digital paper trail, linking IC registration with complaint redressal — ensuring institutional accountability.

STATUTORY PENALTIES (SECTION 26 OF POSH ACT)

Offense

First Conviction Penalty

Repeat Offense Penalty

Failure to constitute an IC

₹50,000

Up to ₹1,00,000

Failure to act on IC/LC recommendations

₹50,000

Fine may be doubled

Failure to file the Annual Report

₹50,000

Fine may be doubled

Contravening other provisions (training, SHe-Box registration, etc.)

₹50,000

Fine may be doubled

Consequence of Repeat Offense

—

License cancellation/non-renewal

Note: Failure to register ICs on SHe-Box (where mandated) constitutes a compliance violation, attracting statutory fines.

JUDICIAL AND FINANCIAL CONSEQUENCES

Beyond statutory fines, non-compliance invites severe judicial and financial repercussions:

  • Exemplary Damages: Courts have awarded compensation in crores for systemic failure to ensure a safe workplace.
  • Contempt of Court: Post the Aureliano Fernandes ruling, non-compliance with IC constitution or SHe-Box registration may attract contempt proceedings.

REPUTATIONAL AND BUSINESS RISKS

Digital accountability amplifies the non-statutory consequences:

  • Reputational Damage: Non-compliance severely harms public trust and brand image.
  • Mandatory Disclosure: False or missing disclosure in the Board’s Report invites MCA scrutiny and penalties.
  • Talent Attrition: A poor safety record hinders recruitment and retention of women professionals.

LEGISLATIVE INTERVENTIONS: EMPOWERING COMPLAINANTS

Proposed amendments aim to make the law more survivor-centric and reduce reporting barriers.

Aspect

Current POSH Act, 2013

Proposed Amendment, 2024

Complaint Filing Timeline (Sec 9)

3 months (extendable by 3 months)

1 year (with unlimited discretionary extension)

Conciliation (Sec 10)

Allowed (at complainant’s request)

Removed — all complaints must undergo inquiry

Rationale

  • Extended Timeline: Recognizes trauma and fear that delay reporting.
  • Removal of Conciliation: Prevents coercion and ensures every complaint receives a formal inquiry.

IMPLICATIONS FOR INTERNAL COMMITTEES (ICs)

1. Enhanced Mandate and Discretion

  • Increased Workload: Every case now requires a full inquiry.
  • Broader Discretion: ICs can condone delays beyond one year but must document reasons meticulously.

2. Evidence Management & Fairness

  • Delayed Evidence Risks: Witness memory fades; digital records may be deleted.
  • Need for Robust Protocols:
    • Standardized documentation at every inquiry stage.
    • Policies for evidence preservation and legal holds upon receiving incident intimation.

IMPLICATIONS FOR EMPLOYERS

1. Policy and Procedural Overhaul

  • Update internal POSH policies to reflect new timelines and removal of conciliation.
  • Conduct advanced IC training on handling delayed cases and evidence.

2. Increased Corporate Accountability

  • Expect more formal inquiries and potential litigation.
  • Focus shifts from resolution to prevention, requiring visible safety initiatives and awareness programs.

CONCLUSION

The new phase of POSH enforcement marks a decisive shift in India’s regulatory landscape — from paper compliance to auditable accountability. With legal, judicial, and digital frameworks converging, organizations must now demonstrate institutional maturity and a genuine commitment to safe, equitable workplaces.

About the Author

Adv. Mamta Singh Shukla is an Advocate at the Supreme Court of India and Founder of Vijay Foundations — an initiative dedicated to social justice, education, and empowerment. Through her writings, she advocates for human dignity, equality, and systemic change.

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Mamta Singh Shukla - Advocate Supreme Court of India

Mamta Singh Shukla
Advocate, Supreme Court of India

📧 adv.mamtasinghshukla@gmail.com

🌐 www.vijayfoundations.com

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