The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, commonly referred to as the POSH Act, makes it mandatory for every organization employing 10 or more employees to constitute an Internal Committee (IC) to address sexual harassment complaints. In 2022, POSH compliance emerged as one of the top governance priorities for Indian organizations, driven by regulatory enforcement, investor scrutiny, and a renewed focus on workplace safety and gender equity.

Core Compliance Requirements

Every employer with 10 or more employees must constitute an Internal Committee (IC) which includes a senior woman employee as Presiding Officer, at least two members from among employees preferably committed to the cause of women or with legal knowledge or experience in social work, and an external member from an NGO or association committed to the cause of women. The Act covers full-time and part-time employees, trainees, interns, contract workers, and even visitors to the workplace. The definition of workplace has been interpreted broadly to include remote work environments and work-related events.

Annual Reporting and Training Obligations

The IC is required to submit an annual report to the employer and to the District Officer. This report must contain the number of complaints received during the year, the number disposed of, the number of cases pending, and a summary of findings. The employer must include IC details and the annual report in their annual report (for listed companies) or submit it to the appropriate authority. The Act also requires employers to organize regular awareness workshops and sensitization programs for employees.

2022 Enforcement: Regulatory and Investor Scrutiny

2022 saw significant intensification of POSH enforcement. SEBI issued guidelines requiring listed companies to disclose POSH compliance status in their Annual Reports and corporate governance disclosures. National Company Law Tribunal (NCLT) orders in several cases penalized companies for inadequate IC constitution and non-submission of annual reports. Additionally, several PE and VC investors began conducting POSH compliance due diligence as part of investment evaluation processes. The Ministry of Women and Child Development issued a revised advisory in 2022 emphasizing the importance of IC training and documentation.

Remote Work and the Expanded Workplace

2022 was significant for POSH compliance because the hybrid work revolution complicated the definition of the workplace. The Act's extended definition covers not just physical premises but any place visited for work, including a client site, a home office, or a video conferencing platform. Organizations in 2022 updated their POSH policies to explicitly address online and digital forms of sexual harassment including unwanted digital communications, virtual meeting misconduct, and harassment via social media platforms.

For Organizations with Fewer Than 10 Employees

Organizations with fewer than 10 employees or for individual employees, the Local Committee (LC) constituted by the District Officer under the POSH Act serves as the redressal mechanism. Employers of such establishments must be aware of the LC's existence and facilitate access to it for employees. The LC is also the body that handles complaints against domestic workers.

Conclusion

POSH compliance is about creating workplaces where every person feels safe, heard, and respected. In 2022, the legal, reputational, and investment implications of non-compliance make this a non-negotiable priority for organizations of all sizes.

 

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