Rising POSH Complaints in Corporate India

Syllabus: GS2/ Governance

In News 

• Nifty 50 companies reported 1,327 complaints under the Prevention of Sexual Harassment (POSH) Act, 2013 in FY26, a rise of 4.6% over FY25.

About PoSH Act, 2013

• The Prevention of Sexual Harassment (POSH) Act, 2013  was enacted to give statutory backing to the Vishaka Guidelines (1997) laid down by the Supreme Court in Vishaka v. State of Rajasthan.
• The Act defined workplace including client sites, travel for work, and virtual or remote work spaces, ensuring coverage beyond the physical office.
• The Act mandates mandatory Internal Complaints Committees (ICCs) in organisations with 10 or more employees & the Local Complaints Committee (LCC) to be constituted at the district level to address complaints from the informal sector and organisations with fewer than 10 employees.
• The complaints must be resolved within 90 days, with a further 60 days for implementation of recommendations.

Why the POSH Act Was Needed?

• Filling a Legal Vacuum: Before 2013, India had no dedicated statute addressing workplace sexual harassment & the Vishaka Guidelines were interim judicial directions in this regard. 
• Constitutional Mandate: The Act operationalises Article 14 (equality), Article 15 (non discrimination), Article 19(1)(g) (right to practice any profession), and Article 21 (right to life and dignity) for working women.
• Rising Female Workforce Participation: As more women entered organised and unorganised sectors, the absence of a safe and accountable environment became a direct barrier to workforce retention and career progression.
• International Commitments: India is a signatory to CEDAW (Convention on the Elimination of All Forms of Discrimination Against Women), which obligates states to ensure non discriminatory working conditions.

Significance

• Institutional Trust Building: A functional POSH mechanism signals organisational accountability, encouraging women to report rather than suffer silently or exit the workforce.
• Governance and ESG Integration: SEBI’s BRSR framework now links POSH compliance to corporate governance ratings, making it a reputational and investment relevant metric.
• Enabler of FLFPR Growth: Safe workplaces are a precondition for improving India’s persistently low Female Labour Force Participation Rate, a key structural constraint on demographic dividend realisation.
• Cultural Shift: Growing willingness to report peer level and digital harassment reflects a maturing understanding of consent and professional conduct.

Implementation Challenges

• Informal Sector Gaps: A large share of India’s workforce remains outside effective protection due to non functional or absent LCCs, particularly in rural and semi urban districts.
• Awareness Deficit: Many small and medium enterprises are unaware of their statutory obligation to constitute ICCs, and compliance remains largely symbolic.
• Evidentiary Complexities: Emerging categories like digital harassment and peer to peer complaints strain ICCs designed originally for hierarchical, in person misconduct.
• Retaliation Fear: Underreporting persists due to fear of professional repercussions, social stigma, and inadequate whistleblower protection.
• Committee Composition Issues: Improperly constituted or inactive committees undermine the credibility of the redressal process itself.

Way Ahead

• Modernise the Framework: Amend rules to explicitly address digital and hybrid workplace harassment with clear evidentiary protocols.
• Capacity Building: Regular ICC and LCC training on evolving complaint typologies and unconscious bias.
• Integrate with Labour Codes: Align POSH compliance monitoring with the upcoming Labour Codes to ensure uniform enforcement across formal and informal employment.

Source: BS