The Sexual Harassment Prevention Act (POSH) in India and related regulations require the employer to submit an annual report to the District Officer and is also part of the reporting requirements to the Registrar of Companies.

The Sexual Harassment (Prevention, Prohibition, and Redressal) Act, 2013, commonly known as the POSH Act, together with the Sexual Harassment (Prevention, Prohibition, and Redressal) Rules, 2013, constitute the so-called “POSH Act” and its scope specific Obligations of Employers in India.

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One of these obligations is the annual reporting obligation. Employers in India are required to submit two distinct reports demonstrating compliance with POSH legislation:

1. Annual report to the employer and district officials: The annual report is prepared by the organization’s internal Complaints Committee (established under the POSH Act) and submitted to the employer or district official. This report details the measures taken by the organization to prevent and combat sexual harassment and the company’s overall compliance with the POSH law.
2. Register with the commercial register: In 2018, the Department of Corporate Affairs (MCA) introduced an amendment to the Companies (Accounts) Rules 2014. As a result, companies are now required to include in the director’s report a statement confirming their compliance with the provisions of the statutes of the Internal Complaints Committee. This disclosure will be made in the director’s report which is then filed with the company’s registrar. The director’s report is filed with the commercial register together with the annual returns.

Read: Human Resources Policies in India: 10 Best Practices for Employers

FAQs: Understanding POSH Act Compliance in India

What are the key steps required by the POSH Act to ensure compliance with workplace sexual harassment prevention measures?

The POSH Act requires organizations in India to take specific steps to ensure compliance. These steps cover various aspects of preventing and combating sexual harassment in the workplace.

Step 1: Develop a “Sexual Harassment Prevention” policy.

Organizations are required to formulate a POSH policy. This policy describes the organization’s commitment to preventing sexual harassment, the procedures for reporting complaints, and the procedures for investigation and resolution.

Step 2: Update employment contracts

Employment contracts should be updated to include provisions related to the organization’s POSH policy. These provisions should detail the obligation to maintain a harassment-free workplace and the consequences of violating the policy.

Step 3: Formation of an internal committee

Organizations are required to set up an internal committee. This committee is responsible for receiving and handling complaints related to sexual harassment. The committee should be composed of nominated members, including a chair, who are trained to handle such cases.

Step 4: Raising employee awareness

Organizations are required to conduct awareness programs to educate employees about their rights and responsibilities in preventing sexual harassment. These programs are designed to help employees understand how to report incidents and the options for requesting remediation.

Read: What constitutes sexual harassment?

Step 5: Submission of the annual report

Organizations must submit an annual report on compliance with the POSH law. This report provides information on the number of complaints received, resolved and pending, as well as details on the awareness programs implemented during the year. The report is submitted to the district officer within the specified time limit.

What are the key components of a POSH policy?

A comprehensive POSH policy should cover the following:

• Clear aims and purposes of the policy
• Definition of sexual harassment
• Coverage details showing who and where the policy applies
• Employee responsibilities, including rules of conduct
• Details and procedures of the internal committee
• Complaint Filing Process
• Complaint handling and investigation procedures
• Disciplinary Actions and Penalties
• Complaints procedures and compensation for complainants
• Data Protection and Confidentiality Clauses

How should employment contracts reflect the POSH policy?

Employment contracts should highlight the organization’s commitment to providing a safe workplace and state the consequences of violating the POSH policy.

What is the purpose of an internal grievance committee?

The Internal Complaints Committee (ICC) is a judicial body formed within organizations with 10 or more employees to process and resolve complaints of sexual harassment. It ensures a fair, transparent and unbiased inquiry process.

The committee’s responsibilities include drafting the sexual harassment policy, providing a safe environment, organizing awareness programs, handling complaints and ensuring appropriate compensation.

Who are the members of the internal committee?

The internal committee consists of three types of members:

• chairman: An officer who acts as the chairperson.
• staff members: Two or more employees, preferably with legal or social work experience.
• External Member: An unbiased outsider who is familiar with the issue of sexual harassment.

What role does the external member play?

The external member guarantees impartial internal committee work, transparency and neutrality. They contribute to the formulation of policies, handle complaints impartially, provide professional advice and assist in the preparation of the annual report.

Can the external member charge for its services?

Yes, the external member is entitled to an expense allowance and reimbursement of travel expenses. You can serve multiple organizations.

Should all internal committee members be women?

At least half of the internal committee members, including the chair, must be women.

What are the consequences of not forming an internal complaints committee?

Failure to properly form the internal committee may result in legal consequences including dissolution of the committee, new investigations and penalties of up to INR 50,000. Repeat violations can result in double penalties or license suspension.

Why is filing an annual report important under the POSH Act?

Filing an annual report is mandatory under the POSH Act. It demonstrates an organization’s commitment to preventing sexual harassment and provides transparency on the number of cases submitted, closed and investigated.

What are the annual reporting requirements under the POSH Act?

Section 21 of the POSH Act states that the Internal Complaints Committee must submit an annual report to both the employer and the county officer each calendar year. According to the provisions of the POSH Act, the annual report must contain the following elements:

• The total number of sexual harassment complaints received during the year.
• The total number of sexual harassment complaints resolved or resolved during the year.
• The number of sexual harassment cases pending for more than 90 days.
• Information on workshops or awareness programs organized by the employer to make employees aware of the provisions of the POSH Act.
• Details of actions taken by both the employer and county officer in response to sexual harassment complaints.

While the POSH Act specifies the items to be included in the annual report, it does not specify a specific timeframe for filing the annual report.

The exact dates for filing this annual report vary between Indian states and are somewhere between December 31st and January 31st. Each state notifies the appropriate county agency through an official notice, specifying the designated agency to which the report is to be submitted and the deadline for submission.

Do all members of the internal complaints committee have to sign the annual report?

Ideally, it is advisable that all members of the ICC Committee sign the annual report. However, the process offers flexibility. The annual report can also be signed by the Chair of the ICC Committee on behalf of all Committee members. In such a case, it is important to ensure that there is documented acknowledgment from all ICC committee members that they agree with the content of the report. This confirmation can be obtained by written notice or email.

As the preparation of the annual report is the shared responsibility of all members of the internal complaints committee, it is important to ensure that all members agree with the content of the report before it is submitted. This ensures transparency and traceability in the reporting process. Whether all members physically sign the report or the chairperson signs on their behalf, it is important to record the acknowledgment of all members to confirm their participation in the preparation of the report.

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