Compliance to credibility: Prevention of sexual harassment in India

It has been more than ten years since the enactment of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act), and corporate India, at times, finds itself in a challenging and difficult situation in managing statutory requirements and employee trust. While almost every organisation today may be compliant, many find themselves unprepared when issues arise. Recent data, judicial scrutiny, and high‑profile corporate cases reveal that formal compliance has not always translated into effective protection.

India’s evolving corporate landscape, with distributed workforces, young employees, and hybrid work environments, demands a recalibration of POSH frameworks. The objective today is to ensure trust, transparency, and timely redressal of POSH complaints. At the same time, organisations face increasing expectations from Boards, regulators, investors, and employees to demonstrate that POSH frameworks are not only in place but are also working effectively.

Key highlights of the report

POSH embedded in corporate governance and statutory reporting

A recent change in the Companies Act requires entities to disclose in the Board of Directors’ report the number of sexual harassment complaints received, disposed of during the year, and pending for more than 90 days. This change has embedded POSH into the corporate governance framework for Boards and statutory reporting
Rising complaints and implementation pressures

A recent analysis of India’s top 30 listed companies reported a 6.2 per cent increase in sexual harassment complaints in FY25, signalling growing employee confidence in POSH mechanisms. However, the same data highlighted a 21 per cent rise in pending cases, raising concerns around inquiry timelines and closure effectiveness
Heightened legal and reputational exposure

Failures in POSH implementation can attract penalties and reputational risks, resulting in uncomfortable scrutiny from markets, investors, employees, and regulators. Delayed resolutions, procedural fatigue, and inconsistent communication may further erode employee trust
Honest reflections on POSH effectiveness

Key pressure points include limited awareness of the Internal Committee (IC), lack of employee engagement due to repetitive training without adequate context, fear of retaliation, and IC members not being properly trained or appearing biased, thereby failing to inspire confidence
Critical considerations for boards

Boards should assess whether employees know where to go, trust the IC and redressal mechanism, and believe the process will be fair, timely, and followed without delays or procedural fatigue

In essence, outcomes from dipstick reviews and assessments provide valuable context to boards on whether an effective POSH framework is in place. Treating POSH as a leadership agenda helps organisations move from compliance to credibility.