Employers with ten or more employees must comply with POSH Act requirements, and violations can lead to significant penalties, including fines and potential business license cancellations.
Overview of POSH Compliance Obligations
Under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act), it is imperative for employers with ten or more employees to form an Internal Committee and fulfill various compliance requirements. Non-compliance poses serious consequences for businesses.
Penalties for Non-Compliance
The risk of penalties for failing to comply with POSH mandates is substantial, with fines potentially reaching ₹50,000. Repeated instances of non-compliance may lead to even harsher outcomes, including cancellation of the business license.
Advice for Employers
Legal professionals representing companies should ensure that their clients are adequately informed about POSH compliance to avoid penalties. Maintaining robust policies and reporting mechanisms is critical to adhering to the law and safeguarding against potential legal action.
Citations
- POSH Act Compliance (2026) 5 LLJ 89
