PoSH Compliance: Are You Making These Mistakes?

While organisations may appear compliant with the Prevention of Sexual Harassment (PoSH) Act, 2013, it is important to identify whether this compliance is substantive. Most companies feel that having a policy or yearly training session is enough. However, compliance requires long-term efforts, legal accuracy and a culture of sensitivity.

The PoSH Act specifically outlines the requirements, but it is common to encounter errors, such as vague policy implementation and the exclusion of off-roll staff. Such loopholes can lead to legal consequences and reputational damage to an organisation.

In this blog, we will discuss the most common PoSH compliance mistakes to avoid, present the legal requirements, and explore techniques to foster a safer, more respectful working environment that is both compliant and responsible.

1. Vague or Incomplete PoSH Policy Implementation

A well-drafted and well-communicated PoSH policy is the foundation of compliance. However, one of the most common PoSH workplace mistakes is using borrowed templates or expired policy drafts. The documents lack the PoSH law’s specificity, such as defining what exactly constitutes sexual harassment (as prescribed in Section 2(n) of the Act), how a complaint is to be filed, and the timelines for redressal. Some companies also fail to specify the Internal Complaints Committee (ICC) members and their functions. The absence of such information can lead to employees not knowing their rights and the mechanisms to report sexual harassment.

2. Misconceived Formation of the Internal Complaints Committee (ICC)

Under Section 4 of the PoSH Act, every organisation with over ten employees should have an Internal Complaints Committee/Internal Committee (ICC/IC) headed by a presiding officer (a senior female employee), two members committed to the cause of women or with knowledge of social work or law, and one external member from an NGO or association committed to the cause of women or a person familiar with the issue relating to sexual harassment. The ICC must comprise atleast of 4 members and should be 50% women. But most companies make a mistake by appointing junior or unqualified staff, skipping the external member altogether, or failing to provide gender balance. A wrongly constituted ICC can render an inquiry invalid and subject the company to legal action.

3. No or Inadequate Training and Sensitisation

Under Section 19(c), employers are required to hold awareness programmes and training sessions periodically. However, training gets tokenised as a one-session workshop or tick-box exercise. Most organisations run generic sessions that do not interact with various levels of employees or even skip senior management. An effective PoSH training in India needs to be periodic, engaging, participative, ranging from frontline workers to CXOs. It must provide clarity on acceptable behaviour, reporting lines, and the emotional effects of sexual harassment.

4. Excluding Contractual and Temporary Staff

One overlooked common PoSH compliance mistake is the exclusion of non-permanent/contingent staff. The PoSH law covers all on-roll employees, contractual employees, interns, volunteers, daily wage workers, and consultants. Yet most organisations restrict their policies and training to full-time, on-roll staff. This exclusion affects the law’s inclusiveness and makes those who usually have the least say even more vulnerable. A PoSH-compliant and ethical approach ensures that all women, irrespective of employment contract, have equal protection and access to redressal mechanisms.

5. Mishandling Complaints or Delaying Redressal

The inquiry for any sexual harassment complaint must be completed within 90 days. However, a recurring problem arises when organisations delay addressing complaints, resulting in internal bias and breaches of confidentiality.

Well-trained ICC members with the proper skills and ethical practice are essential to address complaints sensitively and legally. Mismanagement of complaints can erode employees’ trust and expose the employer to potential penalties or legal proceedings.

6. Poor Documentation and Reporting

Documentation is treated as an afterthought, but it is a statutory requirement. Under Section 21 of the PoSH Act, all ICCs must keep records of complaints, actions, and outcomes. An annual report has to be filed to the Employer and the District Officer at the end of each calendar year. However, many companies fail to maintain complete and secure records, don’t track the number of trainings held for employees/ICC Members, or skip the annual report submission altogether. Most companies are also unaware of the recent mandate to register the company and add details of their ICCs on the SHeBox Portal launched by the Ministry of Women & Child Development, Govt. of India (https://shebox.wcd.gov.in/registerOffices). Poor documentation risks audit failures and makes it difficult for the organisation to defend itself in case of legal scrutiny. A central, secure, confidential documentation system is the key to PoSH compliance.

7. Internal Auditing of PoSH Policy and Monitoring

One lesser-known yet essential compliance requirement is internal auditing of PoSH policies and procedures. Auditing at periodic intervals assists the company in analysing if the company is at all times being compliant with the PoSH Act, i.e., are complaints being heard and documented properly, are trainings being conducted, are PoSH policy/posters/ICC details shared with all employees and put up at relevant places, etc. However, most organisations overlook this practice unless there is a sexual harassment complaint or if there is an inquiry by government authorities. A regular audit, either internal or by external experts, ensures that your systems are proactive rather than reactive, and they will identify the gaps before they turn into legal risks.

8. Treating PoSH as a Formality

Another PoSH compliance mistake organisations make is treating PoSH as a compliance checklist rather than a cultural commitment. If the leadership is non-engaged or views PoSH as an HR responsibility, it impacts the employees wrongly. A policy posted on a website is not sufficient; leaders need to practice respectful behaviour, participate in training, and promote a zero-tolerance policy against sexual harassment. Compliance without integration of culture leads to superficial compliance that does not address the root cause.

9. External Member Not Actively Participating

External members must bring impartiality, proficiency, and legal consciousness to the ICC. Unfortunately, most organisations appoint someone merely to fulfil the requirement on paper. These members may not be trained, attend meetings, or be committed to assisting inquiries. This compromises the validity and impartiality of the redressal procedure. Organisations need to ensure that the external member is qualified, active, and makes valuable contributions to the functioning of the ICC.

The consequences of ineffective PoSH implementation are high. Legally, the organisation can be penalised for up to ₹50,000 for non-compliance under Section 26 of the Act. Repeated violations in certain instances may result in double the penalty and/or the cancellation of business licences or registration. More notably, mishandling of complaints might result in litigation, harming finances and reputation.

At an organisational level, ineffective compliance leads to loss of employee trust, poor morale, and higher attrition. A toxic work culture that overlooks sexual harassment not only impacts the aggrieved woman but also demoralises all employees.

Conclusion

PoSH compliance is not only a legal technicality but also a testament to your organisation’s values and leadership. By avoiding these PoSH mistakes, you build a workplace where every woman feels safe, heard and respected.

At Complykaro, we don’t just help you comply with the law; we help you embed PoSH into your culture. Whether you need customised policy drafting, impactful training, or expert audit support, we are here to ensure you’re doing it right.

Contact us today to review your current compliance status and start building a safer workplace.