Commonly known as the POSH Act, this law makes it mandatory for every workplace with 10 or more employees to have an Internal Committee to receive and inquire into complaints of sexual harassment, giving statutory teeth to the Vishaka Guidelines laid down earlier by the Supreme Court.
The Act defines sexual harassment broadly to include unwelcome physical contact, demand for sexual favours, sexually coloured remarks, showing pornography, and any other unwelcome physical, verbal or non-verbal conduct of a sexual nature. It covers not just regular employees but also interns, contract workers, and clients in certain situations.
Section 4 requires every employer to constitute an Internal Committee, chaired by a senior woman employee, with at least one external member from an NGO or association familiar with sexual harassment issues. Section 9 lays down the complaint procedure, allowing a woman to file a written complaint within 3 months of the incident (extendable).
The Committee must complete its inquiry within 90 days and the employer must act on its recommendations within 60 days. Employers who fail to constitute a Committee face a fine up to Rs 50,000, with repeat violations attracting higher penalties and possible cancellation of business licence.