PoSH Non-Compliance: Penalties, Risks & What Employers Often Miss

Under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, employers carry a statutory responsibility to prevent, prohibit, and redress sexual harassment at work.

Many organizations believe PoSH compliance becomes relevant only when a complaint is raised. In reality, the highest risk lies in being unprepared—even when no complaint has ever been reported.

What Counts as PoSH Non-Compliance?

PoSH non-compliance is not limited to ignoring complaints. It includes:

• Not having a PoSH policy aligned with the Act

• Improper or incomplete constitution of the Internal Committee (IC)

• Lack of awareness or training

• Failure to follow inquiry procedures

• Missing annual reporting obligations

Even unintentional gaps can expose organizations to serious consequences.

Legal & Financial Penalties Under the PoSH Act, 2013

1️⃣ Statutory Penalties

As per Section 26 of the PoSH Act:

• A fine of up to ₹50,000 may be imposed for non-compliance

• Repeat violations can attract higher penalties

• Authorities may recommend cancellation or non-renewal of licenses

2️⃣ Litigation & Compensation Risk

Improper handling of complaints can result in:

• Adverse court orders

• Compensation to the aggrieved employee

• Extended legal scrutiny of company practices

In PoSH cases, process failures matter as much as intent.

Reputational & Business Risks (Often Underestimated)

Beyond penalties, non-compliance can lead to:

• Loss of employee trust

• Increased attrition and disengagement

• Employer brand damage

• Leadership credibility erosion

• Public exposure through social or digital media

For growing businesses, these risks directly affect growth and stability.

Governance Risks: Where Most Organizations Slip

Many companies face risk due to:

• IC members not trained on inquiry procedures

• Breach of confidentiality (Section 16)

• Delays beyond statutory timelines

• Poor documentation during inquiries

These gaps often surface only when scrutiny begins.

Prevention Is Always Easier Than Damage Control

PoSH compliance is not about avoiding penalties—it’s about:

• Building psychological safety

• Demonstrating leadership accountability

• Creating a culture of dignity and fairness

The right time to assess compliance is before an issue arises.

📥 Free Download: PoSH Non-Compliance Risk Checklist (As per PoSH Act, 2013)

To help employers review their exposure, we have created a practical PoSH Non-Compliance Penalties and Risk Checklist, updated as per the PoSH Act, 2013.

👉 [Download the PoSH Non-Compliance Risk Checklist (PDF)]

Need Expert Guidance?

At Shavi Consulting, we help organizations:

• Identify PoSH compliance gaps

• Reduce legal and reputational risk

• Implement practical, legally sound PoSH frameworks

📩 Book a consultation | 📘 Explore our services | 🔍 Follow this space for more insights

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