Every workplace in India with 10 or more employees must prevent sexual harassment, set up a functioning Internal Complaints Committee (ICC), conduct awareness/training, and register ICC details / complaints on the central “SHe-Box” portal where required, failure to do so attracts regulatory, civil and reputational consequences and stricter enforcement following recent Supreme Court directions.
Primary law: Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act) and its Rules.
Central enforcement tool / portal: “SHe-Box” (Sexual Harassment electronic Box) by the Ministry of Women & Child Development (MWCD) — used for complaints and for registering ICC details.
Recent judicial push: The Supreme Court has directed district-wise surveys and tighter monitoring to ensure ICCs have been constituted and that States upload data — a six-week compliance survey was ordered in August 2025 in Aureliano Fernandes v. State of Goa & Ors. (monitoring the POSH roll-out). This raises the risk profile for employers that are non-compliant.
Who is covered?
All workplaces, organised and unorganised sector, where 10 or more employees are employed (at a single or multiple administrative units). The threshold and applicability are explained in the Act and Rules. Public and private sectors are covered, including educational institutions, hospitals, factories, offices, shops, NGOs, and even temporary workplaces.
Key employer obligations (step-by-step)
- Constitute an Internal Complaints Committee (ICC) by written order for each workplace / administrative unit where ≥10 employees work. If multiple branches/administrative units exist, each must have its own ICC.
- ICC composition (minimum statutory requirements):
- Presiding Officer: a woman employed at a senior level in the workplace.
- Minimum 2 members from employees (preferably women).
- One external member (from an NGO or person familiar with issues of sexual harassment) to be nominated by the employer.
- At least 50% women on the committee where possible. (Refer to Rules for detail).
- Display POSH policy and contact details prominently at the workplace and on corporate intranets/websites.
- Awareness & training: conduct regular training workshops and orientation for employees and ICC members.
- Complaint mechanism: maintain a confidential, accessible complaint procedure (written/online/email), with timelines and anti-retaliation safeguards.
- Timelines for inquiry: the ICC must complete an inquiry within 90 days from the date of complaint and produce a report with recommendations. (Interim measures and conciliation options are permitted with safeguards).
- Record keeping: maintain records of complaints, inquiries, actions taken, and training for at least 3 years (and as required by Rules).
- Register ICC details on “SHe-Box / respond to She-Box complaints” where directed — employers/ICC must cooperate with She-Box if a complaint is lodged centrally.
Practical procedure when a complaint arrives (step-wise for companies / ICC)
- Receipt of complaint – accept written/electronic complaint. If the complaint is to “SHe-Box“, the ICC must be notified and cooperate. (Complainant can also approach Local Complaints Committee (LCC) where ICC is not constituted.)
- Preliminary measures / conciliation – ICC may offer conciliation (only if the complainant agrees) — but conciliation cannot involve monetary settlement that stops an inquiry into criminal/serious matters.
- Inquiry – ICC conducts a fair, time-bound inquiry: evidence, witness statements, and opportunity to both parties to be heard.
- Interim relief – ICC can recommend interim measures: transfer of parties, leave to complainant, suspension of accused, or workplace modifications.
- Inquiry report & recommendations – ICC issues findings and recommends action (disciplinary action up to termination, warning, fine, etc.). Employer is expected to act on recommendations within 60 days.
- Appeal – either party can appeal to a court or tribunal as permitted by law.
- Confidentiality & non-retaliation – ensure complainant and witnesses are protected. Breach of confidentiality/retaliation itself is punishable and may be an additional complaint.
What disciplinary actions can ICC recommend / employer impose?
Typical actions (Rule/Service regulations + standing practice) include:
- Written apology or warning.
- Mandatory counselling/anger management.
- Transfer of the accused or complainant for workplace functioning.
- Withholding increments, demotion, or suspension.
- Termination of services (for serious proven misconduct).
- Monetary fines (where permitted) and compensation recommended by ICC to be paid to the complainant.
Consequences of non-compliance (legal, regulatory and practical)
- Regulatory scrutiny & enforcement – Government authorities (Labour Department, State nodal officers) and now the Supreme Court’s monitoring can compel compliance, order inspections/surveys, and require uploading of ICC details and reports. The recent district-wise survey makes this immediate and widespread.
- Monetary penalties & licence risk – Repeated or serious non-compliance can invite fines, and regulators may use non-compliance as a ground for restricting licences, registrations or approvals in some sectors. Several expert writeups note financial and operational risks for non-compliant employers.
- Civil liability & compensation – Courts or tribunals may award compensation to victims for mental trauma, loss of career opportunity, and more. The ICC can recommend monetary relief; courts may impose larger awards.
- Criminal exposure – Certain acts within sexual harassment overlap with penal offences and may attract criminal prosecution independent of POSH inquiries. Employers may also face criminal negligence claims in extreme cases.
- Reputational damage – Public cases, especially when registered on SHe-Box or highlighted in media, harm brand and investor confidence.
- Employment disputes & attrition – Non-action increases attrition, lowers morale, and triggers labour unrest or union action.
- Injunctions & judicial monitoring – Courts may subject recalcitrant employers or States to supervision (as seen in recent judicial monitoring of POSH compliance).
How to get audit-ready (practical compliance checklist for companies)
Use this checklist to prepare for internal review or for the district survey:
- Written order constituting ICC (signed & dated).
- ICC composition details (names, designations, external member credentials). Upload to “SHe-Box” where required.
- POSH policy document (published & displayed).
- Complaint form/sample & email/physical address for lodging complaints.
- Training records (dates, attendees, material).
- Inquiry files: complaints received, inquiry report, findings, action taken, communications. Keep scanned copies.
- Records of interim relief granted (if any).
- Annual report/statement on POSH compliance (if prepared).
- Contact details of nodal officer / HR for POSH compliance.
- Evidence of registration on SHe-Box (if uploaded) or proof of communication with LCC / She-Box for complaints.
Best practices (beyond legal minimum)
- Appoint a senior HR/Compliance officer as POSH nodal officer.
- Run refresher trainings every 6–12 months and induction training for new joiners.
- Maintain confidential digital case management (secure files, limited access).
- Bring in neutral external investigators for sensitive cases to increase acceptability.
- Adopt zero-tolerance communications policy and clear anti-retaliation measures.
- Audit compliance quarterly and be able to demonstrate corrective steps.
How the Supreme Court order (district survey) affects companies now
- Expect district authorities / labour commissioners to request data and to verify ICCs and complaint records. Companies should be ready to submit ICC orders, registration details, evidence of training and inquiry documents on short notice.
- If you are not compliant: remedy immediately — register ICC, upload information to SHe-Box (where applicable), conduct training and prepare records — because enforcement action may follow fast due to the Court’s timeline.