
The enforcement landscape under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (“POSH Act”) is witnessing a major shift in Maharashtra. The State Government has now introduced a structured inspection mechanism empowering designated officers to verify POSH compliance across private, government, and semi-government establishments.
This development signals a transition from paper compliance to active regulatory scrutiny. Organizations can no longer afford to treat POSH compliance as a one-time documentation exercise. Employers must now ensure that their Internal Committee (“IC”), policies, reporting systems, training records, and grievance mechanisms are fully compliant and inspection-ready at all times, explained in this blog post, POSH Inspection in Maharashtra and precautions to be taken.

The recent circular issued by the Government of Maharashtra authorizes multiple officials under the Women and Child Development Department and district administration to conduct inspections under Section 25 of the POSH Act.
The move comes amid increasing concerns regarding workplace safety and implementation gaps under the POSH Act, especially after several widely reported workplace harassment incidents in Maharashtra. Authorities have emphasized that organizations must not merely constitute Internal Committees on paper but must demonstrate effective implementation of the law.
The inspection framework includes a detailed compliance checklist. During inspections, establishments may be required to produce records and documents relating to:
Authorities may also verify whether employees are aware of reporting channels and whether organizations have created a safe and accessible complaint mechanism.

One of the primary areas of scrutiny during inspections is likely to be the validity of the Internal Committee.
Under Section 4 of the POSH Act, every organization employing 10 or more employees is required to constitute an Internal Committee comprising:
Failure to include a valid External Member or improper constitution of the IC may render the committee legally defective.
Many organizations unknowingly remain non-compliant because their IC composition does not satisfy statutory requirements.
Recent judicial developments have also strengthened the compliance obligations of employers.
In ongoing proceedings before the Supreme Court concerning nationwide implementation of the POSH Act, the Court has emphasized district-level verification of Internal Committees and directed authorities to strengthen compliance monitoring mechanisms.
The Court has also highlighted the role of the SHe-Box portal as part of compliance monitoring and transparency measures. Employers may therefore increasingly be expected to maintain updated compliance data and cooperate with inspections and verification processes.
Importantly, SHe-Box compliance does not replace statutory obligations such as filing annual reports or maintaining Internal Committee records.
Non-compliance under the POSH Act can result in serious legal and reputational consequences.
Under Section 26 of the POSH Act, penalties may extend to monetary fines up to ₹50,000 for failure to constitute an Internal Committee or comply with statutory obligations. Repeated violations may attract higher penalties and additional regulatory consequences.
Recent judicial observations have also indicated that regulatory authorities may take stricter action against defaulting establishments.
Beyond legal liability, non-compliance can significantly impact employee trust, workplace culture, and organizational reputation.
In light of the recent inspection framework, employers should proactively review their POSH compliance systems. Organizations should:
POSH compliance should now be treated as an ongoing governance obligation rather than a reactive legal formality.
The Maharashtra Government’s inspection circular marks a significant compliance development under the POSH Act. The focus is now clearly on accountability, implementation, and demonstrable compliance.
Organizations must ensure that their Internal Committees are properly constituted, policies are effectively implemented, employees are trained, and records are maintained in a legally compliant manner.
A proactive approach toward POSH compliance not only minimizes legal exposure but also helps organizations create safer, respectful, and legally compliant workplaces.
For organizations seeking assistance with POSH compliance audits, External Member services, IC training, policy drafting, or workplace sensitization programs, ATSCO Corporate Resources provides end-to-end POSH compliance support tailored to organizational requirements.
With 18 years of experience, ATSCO Corporate Resources is a trusted labour law consultancy firm, serving 50+ corporates across diverse industries
Providing end-to-end functions of payroll services, including time and attendance management and leave processing
Emphasize the expertise of the team in handling complex payroll issues