Starting July 14, 2025, the Ministry of Corporate Affairs (MCA) has rolled out new compliance requirements aimed at improving workplace safety and accountability. As part of these changes, companies will now need to include detailed disclosures about sexual harassment complaints in their Board Reports.

These updates come under the Companies (Accounts) Second Amendment Rules, 2025, as notified by Notification No. G.S.R. 357(E) dated May 30, 2025

Here is what is changing- 

Mandatory Disclosure of Sexual Harassment Complaints:

Under the revised rules, companies are now required to make specific disclosures in their Board Reports related to sexual harassment at the workplace.

As per Section 134 of the Companies Act, 2013, read with the amended Rule 8(5)(a) of the Companies (Accounts) Rules, 2014, companies must:

i. Provide a statement that the Company has complied with the provisions constituting an Internal Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. 

ii. Disclose the following details regarding the complaints of sexual harassment:

1. Number of sexual harassment complaints received in the year
2. Number of complaints disposed off in the year
3. Number of cases pending more than 90 days.

Consequences of Non-compliance:

Non-compliance with these provisions can lead to penalties under Section 134(8) of the Companies Act, 2013. The fines are as follows:

• Company – ₹3,00,000
• Every officer in default: ₹50,000

However, certain relief is provided to companies of specific categories such as One Person Companies, Small Companies and Startups wherein the penalty is halved and is subject to the maximum limits below:

• Company – INR 2,00,000
• Officer in default – INR 1,00,000

Changes in a nutshell: 

 It is noteworthy that the previous mandate was a superficial and general one while the changes bring in stricter reporting and encourage better enforcement and oversight. The notification also serves as a reminder that POSH at the workplace is more than a checklist activity. Companies must be proactive in ensuring compliance to the POSH Act as well as take steps to ensure workplaces are safer for all.

Official Resources

•  https://www.mca.gov.in/content/mca/global/en/acts-rules/ebooks/notifications.html

• MCA-Notification-regarding-Companies-Accounts-Second-Amendment-Rules-2025-dated-30.05.2025 (1)

Please reach out to us for any queries on Mandatory POSH Compliance for Companies.

For more blogs and articles, visit our official website. Contact us for workshops and queries related to POSH, EAP (Employee Assistance Program) , Diversity and Inclusion and Code Of Conduct.

The post Mandatory POSH Compliance for Companies from July 14, 2025 appeared first on Prevention of Sexual Harassment, Inclusive Diversity, Employee Assistance Program | CecureUs | Chennai.