Setting Up of Business, Industrial and Labour Laws · Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

POSH Act: Action on Inquiry Report, Penalties and Confidentiality

Updated 11 October 2026 · Fact-checked

After the inquiry, the Committee gives its report to the employer within ten days. The employer acts within sixty days. If the allegation is proved, it can mean misconduct action and salary deduction as compensation. Section 16 bars publishing complaint details. Section 26 fines employers up to ₹50,000. Appeal lies within ninety days.

Understand Action on Inquiry Report, Penalties and Confidentiality

Once the Internal Committee (IC) or Local Committee (LC) finishes its inquiry, the Act tells you what must happen next. The Committee does not punish anyone itself. It makes a report and recommendations. The employer or District Officer then acts on them.

The report goes to the employer or District Officer within ten days of completing the inquiry, and it must be made available to the concerned parties (section 13(1)). The inquiry itself must be completed within ninety days (section 11(4)). The employer or District Officer must act on the recommendation within sixty days of receiving it (section 13(4)).

There are two outcomes. If the allegation is not proved, the Committee recommends that no action is needed (section 13(2)). If it is proved, the Committee recommends action for sexual harassment as misconduct under the respondent's service rules (or as prescribed if there are none). It also recommends deducting a sum from the respondent's salary or wages, to be paid to the aggrieved woman or her legal heirs (section 13(3)). If the employer cannot deduct because the respondent is absent or has left, the respondent can be directed to pay. If he does not pay, the Committee can forward the order to the District Officer for recovery as an arrear of land revenue.

The Act also protects against misuse and leaks. A malicious or false complaint, or false evidence, can attract action under section 14. But a mere inability to prove a complaint is not enough. Section 16 bars publishing the complaint, identities, proceedings, recommendations and action taken, even against the Right to Information Act, 2005. Section 17 gives the penalty for breach, and section 26 fines employers who fail in their duties. Section 18 gives a right of appeal.

Key rules to remember

Timelines: Inquiry: 90 days | Report to employer: 10 days after inquiry | Employer acts: within 60 days of receipt | Appeal: within 90 days; Sections 11(4), 13(1), 13(4) and 18(2). Learn them as one chain.
Compensation factors (section 15): (a) mental trauma, pain, suffering, emotional distress; (b) loss of career opportunity; (c) medical expenses; (d) respondent's income and financial status; (e) feasibility of lump sum or instalments; Five factors. Three relate to the woman's loss, two to the respondent's capacity to pay.
If allegation proved (section 13(3)): Action as misconduct under service rules + deduction from salary/wages for payment to aggrieved woman or legal heirs; If deduction is impossible, respondent is directed to pay. Non-payment: recovery as arrear of land revenue via District Officer.
False complaint or evidence (section 14): Malicious intent established by inquiry before action is recommended; mere failure to prove is not enough; Section 14(2) covers witnesses giving false evidence or forged or misleading documents.
Confidentiality (sections 16 and 17): Complaint contents, identities and addresses, conciliation and inquiry information, recommendations and action taken: not to be published or made known to public, press and media; Applies despite the RTI Act. Proviso allows information on justice secured without any identifying particulars. Breach: penalty under service rules, or as prescribed.
Employer penalty (section 26): Fine up to ₹50,000; on repeat conviction: twice the punishment, and cancellation, withdrawal or non-renewal of licence or registration; Triggers: not constituting IC under section 4(1), not taking action under sections 13, 14 and 22, or contravening other provisions.
Appeal (section 18): Appeal to court or tribunal per service rules, or as prescribed, within 90 days of the recommendations; Covers recommendations under sections 13(2), 13(3)(i) and (ii), 14(1), 14(2), 17, or their non-implementation.

How to solve Action on Inquiry Report, Penalties and Confidentiality questions

Use this order for any question on what follows an inquiry, on penalties or on confidentiality.

1Identify the stage: pending inquiry, report, action, appeal or publication. Note the dates given.
2State the relevant section and the rule in plain words.
3Check the finding. Proved or not proved decides which part of section 13 applies.
4For compensation, list the section 15 factors and apply those that fit the facts.
5For a false complaint, check whether malicious intent was established after inquiry. Mere inability to prove is not enough.
6For publication, check who published, what was disclosed and whether the proviso (no identifying particulars) applies.
7For penalty, match the default to section 26 or section 17, and check for repeat conviction.
8Close with a clear conclusion that answers the question asked.

Quickest way: Stage-and-section map

When to use it: Short case-study questions where you have to name the section and the outcome fast.

Write the stage and its section: report 13, compensation 15, false complaint 14, appeal 18, confidentiality 16-17, employer fine 26.
Match the numbers: 10 days report, 60 days action, 90 days appeal, ₹50,000 fine.
Apply to the facts in two lines and give the conclusion.

Common mistakes in Action on Inquiry Report, Penalties and Confidentiality

Saying the Committee itself punishes the respondent or deducts salary.
The Committee leads the inquiry, so students assume it also imposes the outcome.
Fix: Write that the Committee recommends, and the employer or District Officer implements within sixty days.
Treating a complaint that could not be proved as a false complaint.
Students link not proved with malicious.
Fix: Quote the proviso to section 14(1): inability to substantiate need not attract action. Malicious intent must be established after an inquiry.
Mixing up the time limits, such as 90 days for the report or 10 days for appeal.
There are four periods in similar ranges.
Fix: Remember: inquiry 90, report 10, employer action 60, appeal 90.
Thinking section 16 stops all information about POSH outcomes.
Students overlook the proviso.
Fix: Information on justice secured may be shared if no name, address, identity or identifying particulars of the woman and witnesses are disclosed.
Quoting the penalty for employers as imprisonment.
Students confuse it with other statutes.
Fix: Section 26(1) provides a fine up to ₹50,000. Repeat offence: twice the punishment plus licence or registration action.
Listing only the woman's suffering as compensation factors.
Students forget that the respondent's means count.
Fix: Include factors (d) and (e): the respondent's income and financial status, and lump sum or instalments.

Worked examples

Example 1

The Internal Committee of Sundaram Textiles Ltd., Coimbatore, concludes that the allegation against a manager, Mr. Rao, is proved. Advise the company on the action it must take and how the compensation payable to the aggrieved woman is to be determined.

Show the solution

Provision: under section 13(3) the Committee recommends action to the employer once the allegation is proved. The employer must act within sixty days of receipt (section 13(4)).
Action: the Committee recommends action for sexual harassment as misconduct under the service rules applicable to Mr. Rao, or as prescribed if there are none.
Compensation: it also recommends deducting from his salary or wages a sum to be paid to the aggrieved woman or her legal heirs, notwithstanding the service rules.
Amount: under section 15 the Committee has regard to her mental trauma, pain, suffering and emotional distress; loss of career opportunity; medical expenses; Mr. Rao's income and financial status; and whether payment is feasible in lump sum or instalments.
If deduction is impossible, for example Mr. Rao has left, he can be directed to pay. If he does not, the Committee can forward the order to the District Officer for recovery as an arrear of land revenue.

Answer: The company must implement the Committee's recommendations within sixty days: take misconduct action and deduct the compensation fixed on the section 15 factors from Mr. Rao's salary, with the recovery route available if deduction is not possible.

Example 2

An HR executive of Bharat Engineering Ltd. tells a newspaper the name of the complainant and the Internal Committee's recommendations in a pending case. Is this permitted? What follows?

Show the solution

Provision: section 16 bars publishing, communicating or making known to the public, press and media the contents of the complaint, identity and addresses of the aggrieved woman, respondent and witnesses, conciliation and inquiry information, recommendations and action taken. It applies notwithstanding the RTI Act, 2005.
Facts: the executive disclosed the complainant's name and the recommendations to the press. Both fall within section 16, and the proviso does not help because the identity was disclosed.
Consequence: section 17 applies to a person entrusted with handling the complaint. The penalty is as per the service rules applicable to that person, or as prescribed if there are none.
Appeal: a person aggrieved by a recommendation under section 17 may appeal within ninety days under section 18.

Answer: The disclosure is prohibited under section 16. The executive is liable to penalty under section 17 in accordance with service rules, or as prescribed, and may appeal within ninety days under section 18.

Exam tips

Write answers in the order: provision, facts, conclusion, and cite the section each time.
Memorise the number chain 90, 10, 60, 90 and the ₹50,000 fine. Examiners often test these.
In false complaint questions, always quote the two provisos of section 14(1).
In section 16 questions, mention the RTI override and the proviso on justice secured without identifying particulars.
Use the word recommends for the Committee and implements for the employer.

Practice questions from Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

Action on Inquiry Report, Penalties and Confidentiality: frequently asked questions

What does section 16 of the POSH Act prohibit?

It bars publishing or making known to the public, press and media the complaint contents, identities and addresses of the woman, respondent and witnesses, conciliation and inquiry information, recommendations and action taken. It applies despite the RTI Act, 2005.

What is the penalty on an employer for non-compliance with the POSH Act?

Under section 26(1), an employer who fails to constitute an IC, fails to take action under sections 13, 14 and 22, or contravenes other provisions is liable to a fine up to ₹50,000. On repeat conviction, the punishment can be doubled and licence or registration can be cancelled or not renewed.

How is compensation to the aggrieved woman determined?

Section 15 lists the factors: mental trauma and distress, loss of career opportunity, medical expenses, the respondent's income and financial status, and whether payment can be in lump sum or instalments. The sum is deducted from the respondent's salary under section 13(3)(ii).

Within what time can one appeal against ICC recommendations?

Section 18 allows an appeal to a court or tribunal within ninety days of the recommendations. It follows the service rules, or the prescribed manner where there are none.

Can a woman be punished if her complaint is not proved?

Not merely for that. The proviso to section 14(1) says inability to prove a complaint need not attract action. Malicious intent must be established after an inquiry before action is recommended.