POSH Act Complaints in Nifty 50 Companies
In FY26, India's Nifty 50 companies reported a total of 1,327 complaints under the Prevention of Sexual Harassment (POSH) Act, marking a 4.6% increase from the previous fiscal year. This rise suggests increased awareness and trust in the complaint redressal process.
Trends in Complaint Reporting
- Excluding two companies with unavailable data, complaints have risen steadily over two years:
- 6.3% increase in FY25 over FY24
- 5.2% increase in FY26 over FY25
- A higher number of complaints is not necessarily an indicator of increased harassment but could reflect greater awareness and willingness to report.
- The increase in reports is seen more prominently in larger, listed companies due to SEBI's disclosure requirements.
Factors Contributing to Increased Reporting
- Increased awareness due to mandatory annual employee sensitization under the POSH Act.
- Media coverage of incidents like the TCS Nashik case, raising awareness about the consequences of non-compliance.
- Higher trust in the system encouraging more women to report harassment.
Nature of Reported Cases
- Reported cases often involve:
- Verbal harassment
- Unwanted communication
- Misuse of power in hierarchical relationships
- Digital harassment via messaging platforms, email, and social media has increased, especially with remote and hybrid work models.
POSH Compliance in Different Sectors
- Compliance is better in the formal sector but lacking in the informal sector, which comprises 90% of India's workforce.
- Challenges in the informal sector include:
- Lack of designated officers
- Improperly constituted local complaints committees
- Limited access for victims
Court's Role and Challenges
- Courts recognize virtual workplaces and messages from platforms like WhatsApp and social media as valid for inquiries.
- Rise in peer-level harassment complaints, posing challenges in defining boundaries and emphasizing consent for HR and ICCs.
- Shift towards reporting more nuanced conduct rather than severe or repeated misconduct alone.
