What Happens When an Organisation Does Not Comply With PoSH?

strategifai@gmail.com
September 9, 2026
Uncategorized

Many organisations think of PoSH compliance as a checklist:

Have we created the policy?
Have we constituted the Internal Committee?
Have we conducted the annual training?

Once these boxes are ticked, the organisation assumes it is compliant.

But PoSH compliance is much more than paperwork.

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 creates specific responsibilities for employers and a statutory mechanism for prevention, prohibition and redressal of sexual harassment at the workplace.

When these responsibilities are ignored, the consequences can go far beyond a missing document.

An organisation may face statutory penalties, repeated compliance issues, reputational damage, procedural challenges and loss of employee trust.

So, what actually happens when an organisation does not comply with PoSH?

Let’s understand.

What Does “PoSH Non-Compliance” Actually Mean?

PoSH non-compliance does not mean only one thing.

It can involve different failures, including:

Not constituting the required Internal Committee
Incorrectly constituting the Committee
Not displaying or communicating the required information
Failing to conduct awareness programmes
Failing to train IC members
Not providing appropriate support to the IC
Failing to follow the prescribed inquiry process
Failing to act on recommendations
Failing to maintain appropriate records
Failing to comply with reporting requirements
Treating PoSH as a policy document rather than an operational framework

The Act specifically sets out employer duties, including providing a safe working environment, conducting awareness programmes, supporting the Committee and monitoring compliance.

Therefore, an organisation can have a PoSH policy and still have significant compliance gaps.

1. The Organisation Can Face a Statutory Penalty

This is one of the most direct consequences.

Section 26 of the PoSH Act provides for a penalty which may extend to ₹50,000 where an employer fails to constitute the Internal Committee, fails to take action under specified provisions, or contravenes other provisions of the Act or Rules.

This means that PoSH compliance is not simply an internal HR preference.

There are statutory obligations attached to it.

And the consequences can become more serious for repeat violations.

Section 26 also provides for enhanced consequences following a previous conviction, including the possibility of doubling the punishment and cancellation, non-renewal or refusal of certain licences, registrations or approvals required for carrying on the business or activity, subject to the statutory framework.

So the question should not be:

“What is the penalty for not having an IC?”

It should be:

“Why would an organisation knowingly leave a statutory compliance gap when the consequences can escalate?”

2. Repeated Non-Compliance Can Have Serious Business Consequences

The PoSH Act does not stop at a first monetary penalty.

Section 26 provides for additional consequences in cases involving a subsequent conviction, including potential consequences relating to licences, registration or approvals required to carry on a business or activity.

For businesses operating in regulated environments, this is particularly important.

A compliance failure can therefore move from:

HR Issue

↓

Legal Issue

↓

Business Risk

This is why PoSH should be treated as part of the organisation’s broader governance and compliance framework.

3. A Poorly Constituted IC Can Jeopardise the Inquiry

One of the most important points highlighted by the Supreme Court is that the Internal Committee is central to the PoSH mechanism.

In Aureliano Fernandes v. State of Goa & Ors., the Supreme Court emphasised the importance of properly constituted Committees and effective implementation of the Act. It observed that an improperly constituted Committee can create an impediment to conducting an inquiry as contemplated under the statute.

This is an important distinction:

Having an IC is not enough.

The organisation needs an IC that is:

Properly constituted
Appropriately trained
Functionally supported
Capable of conducting the statutory process

An IC that exists only on paper does not provide meaningful compliance.

4. A Poorly Conducted Inquiry Can Be Challenged

Imagine an organisation receives a serious PoSH complaint.

The IC conducts an inquiry.

The organisation takes disciplinary action.

But later, questions arise about:

Whether the IC was properly constituted
Whether the respondent received a reasonable opportunity to respond
Whether the inquiry was conducted fairly
Whether relevant material was considered
Whether the findings were properly reasoned
Whether principles of natural justice were followed

The problem may then become much larger than the original complaint.

The Supreme Court’s decision in Aureliano Fernandes demonstrates why procedural fairness matters.

The Court found serious procedural deficiencies and held that the inquiry process could not compromise natural justice merely in the pursuit of speed.

The lesson for organisations:

Getting the outcome you want is not the same as conducting a legally sustainable inquiry.

The process matters.

5. The Organisation Can Lose Employee Trust

Not every consequence of PoSH non-compliance comes in the form of a legal notice or monetary penalty.

Sometimes the biggest damage is internal.

Imagine employees believe:

“There is no point complaining here.”

“The IC is only on paper.”

“Management will protect senior people.”

“If I complain, everyone will find out.”

Even if the organisation has a technically compliant policy, such perceptions can undermine the entire purpose of the PoSH framework.

A workplace complaint mechanism works only when employees have reasonable confidence that the process is:

Accessible.
Confidential.
Fair.
Credible.

6. Lack of Training Can Turn a Compliant Structure Into a Weak One

An organisation may have:

A policy
An Internal Committee
An External Member
An annual employee training programme

And yet still be poorly prepared.

Why?

Because IC competence matters.

The Supreme Court in Aureliano Fernandes specifically highlighted the need for orientation, workshops and awareness programmes to build the capacity of Committee members and educate employees about the Act.

An IC member needs more than a basic understanding of what sexual harassment means.

Members may need practical understanding of:

Natural justice
Inquiry procedure
Evidence
Questioning
Documentation
Confidentiality
Findings
Report writing
Handling parties and witnesses
Procedural fairness

Awareness tells you what the law says.

Capacity-building teaches you how to apply it.

7. The Organisation May Struggle When a Complaint Actually Arrives

This is where weak compliance becomes visible.

An organisation may go years without receiving a complaint and assume everything is fine.

Then one complaint arrives.

Suddenly, management asks:

Who is the IC?
Where should the complaint be sent?
Who is the Presiding Officer?
What is the process?
Who communicates with the parties?
What documents need to be maintained?
What happens next?

If these questions do not already have clear answers, the organisation has a problem.

PoSH readiness should exist before the complaint arrives.

Not after.

8. Annual Training Alone Does Not Equal Compliance

Another common misconception is:

“We conduct one PoSH session every year, so we are compliant.”

Awareness programmes are important.

But training cannot replace the rest of the compliance framework.

The employer’s statutory duties cover much more than awareness sessions, including workplace safety, displaying relevant information, supporting the Committee and ensuring appropriate reporting and implementation.

Think of training as one part of the system:

Policy

+

IC

+

Awareness

+

Training

+

Reporting Mechanism

+

Inquiry Process

+

Documentation

+

Employer Support

+

Monitoring

That’s a compliance framework.

9. Poor Documentation Can Become a Serious Weakness

Documentation is often treated as administrative work.

It shouldn’t be.

When an organisation needs to demonstrate that it followed the appropriate process, documentation can become extremely important.

The organisation should be able to demonstrate things such as:

How the IC was constituted
Who the members are
How employees were informed
What awareness programmes were conducted
What training was provided
How complaints were handled
What actions were taken
Whether statutory reporting requirements were followed

The absence of proper records can make it difficult to demonstrate actual implementation.

“We did it” is much weaker than “Here is the record showing that we did it.”

10. Non-Compliance Can Damage the Organisation’s Reputation

PoSH is not only a legal compliance issue.

It is also a workplace culture issue.

If an organisation becomes known for mishandling harassment complaints, failing to protect employees or treating PoSH as a formality, the impact can extend beyond the immediate complaint.

It can affect:

Employee morale
Recruitment
Retention
Employer branding
Leadership credibility
Workplace culture
Stakeholder confidence

In today’s workplace environment, employees increasingly expect organisations to demonstrate their values through actual systems and behaviour.

A statement such as:

“We are committed to a safe workplace.”

means little if the organisation’s systems do not support that commitment.

11. Management Cannot Simply Hand PoSH Over to HR

One of the biggest organisational mistakes is saying:

“HR handles PoSH.”

PoSH compliance involves specific statutory duties of the employer.

HR may coordinate implementation, but management must provide appropriate support and resources for the framework to function.

The employer’s responsibilities include providing a safe working environment, organising awareness programmes, supporting the Committee and facilitating the inquiry process.

PoSH is not an HR-only responsibility.

It is an organisational responsibility.

12. The Supreme Court Has Made the Message Clear

The Supreme Court’s intervention in Aureliano Fernandes v. State of Goa is particularly important for understanding the larger compliance picture.

The Court noted serious lapses in implementation of the PoSH Act even years after its enactment.

It directed governments and relevant authorities to undertake time-bound verification of the constitution and composition of Internal Committees, Local Committees and related mechanisms.

It also directed that relevant information about Committee constitution, contact details and complaint procedures be made readily available, and emphasised orientation and capacity-building.

The message is clear:

PoSH compliance cannot remain a paper exercise.

And this applies to the way organisations think about their own compliance.

What Does a PoSH-Ready Organisation Look Like?

A PoSH-ready organisation should be able to answer yes to questions such as:

Internal Committee

☐ Is the IC properly constituted?
☐ Are the members aware of their statutory responsibilities?
☐ Is the External Member appropriately appointed?

Employee Awareness

☐ Do employees know what constitutes sexual harassment?
☐ Do employees know how and where to complain?
☐ Is the relevant information easily accessible?

IC Capability

☐ Have IC members received practical training?
☐ Do they understand inquiry procedure?
☐ Do they understand natural justice?
☐ Do they know how to document proceedings and prepare findings?

Employer Responsibilities

☐ Is the workplace safety framework actually implemented?
☐ Are awareness programmes conducted?
☐ Does management support the IC?
☐ Are required reports and records maintained?

Inquiry Readiness

☐ Is there a clear complaint-handling process?
☐ Are confidentiality safeguards understood?
☐ Can the organisation support the IC without interfering with its independent statutory role?

If several answers are “No”, the organisation may have a compliance gap.

A Simple Way to Think About PoSH Risk

Don’t think:

“We have a PoSH policy.”

Think:

“CAN WE DEMONSTRATE IMPLEMENTATION?”

Because compliance is not just about possessing documents.

It is about whether the organisation can demonstrate that the system actually works.

What Should Organisations Do Now?

If you are reviewing your PoSH compliance, start with these five steps.

1. Verify the IC

Review its constitution, composition, tenure and member roles.

2. Review the Policy

Make sure the policy reflects the applicable statutory framework and is accessible to employees.

3. Train the IC

Go beyond awareness.

Build practical capability in inquiry procedure, natural justice, documentation and report writing.

4. Audit Your Documentation

Check training records, IC records, awareness activities, annual reporting and other relevant compliance documentation.

5. Test Your Readiness

Ask:

“If a complaint came in tomorrow, could we handle it properly?”

If the answer is uncertain, that’s where your compliance work should begin.

Final Takeaway

PoSH non-compliance is not simply about forgetting to upload a policy or missing a training session.

It can affect the organisation at multiple levels:

LEGAL RISK

↓

PROCEDURAL RISK

↓

FINANCIAL / REGULATORY RISK

↓

REPUTATIONAL RISK

↓

EMPLOYEE TRUST

The PoSH Act was designed to create a meaningful mechanism for prevention, prohibition and redressal of sexual harassment.

The Supreme Court has reinforced that implementation must be genuine—not merely formal.

The real question isn’t:

“Are we technically PoSH compliant?”

It is:

“If our PoSH framework is tested tomorrow, will it actually work?”

Because PoSH compliance is not a document you keep in a folder.

It is a system you build, train, maintain and continuously improve.

PoSHmentor.in
Beyond Compliance. Towards Safer Workplaces.

Frequently Asked Questions

What is the penalty for non-compliance with the PoSH Act?

Section 26 provides that certain failures or contraventions can attract a penalty of up to ₹50,000.

Subsequent convictions can carry enhanced consequences, including potential cancellation or non-renewal of certain licences, registrations or approvals, subject to the statutory provisions.

Is having an Internal Committee enough for PoSH compliance?

No. The Committee must be properly constituted and capable of performing its statutory role. The Supreme Court has emphasised both proper constitution and effective functioning.

Is annual PoSH training enough?

No. Training is an important part of the framework, but employer duties extend beyond awareness programmes to areas including workplace safety, Committee support, information accessibility, inquiry facilitation and reporting.

Can a poorly conducted PoSH inquiry be challenged?

Yes. Procedural fairness matters. The Supreme Court’s decision in Aureliano Fernandes illustrates that an inquiry can face serious consequences where principles of natural justice are compromised.

Who is responsible for PoSH compliance?

PoSH compliance involves the organisation as a whole. The employer has specific statutory duties, while the Internal Committee has its own statutory functions. HR, management, IC members and employees each play important roles.

Disclaimer

This article is intended for general educational and awareness purposes and does not constitute legal advice.

PoSH requirements and their implementation should be reviewed against the current Act, Rules, applicable service regulations and relevant judicial decisions.

Organisations dealing with a specific compliance issue or complaint should obtain appropriate professional advice.