POSH reporting up as trust in the system grows

India's Nifty 50 companies have reported a 4.6% increase in complaints under the Prevention of Sexual Harassment (POSH) Act in fiscal year 2026 (FY26) from FY25, indicating greater awareness and trust in the redressal process. The number of complaints has been steadily rising for two consecutive years by 6.3% in FY25 and 5.2% in FY26 (compared to the previous year).

This rise is not necessarily indicative of more sexual harassment incidents, but rather the result of increased awareness and employee sensitisation due to the mandatory annual training requirements under the POSH Act. Experts suggest that this trend reflects a positive shift, as more women employees feel empowered to report incidents.

Despite this progress, significant underreporting persists in smaller companies and the informal sector, which constitutes 90% of India's workforce. The majority of reported cases involve verbal harassment, unwanted communication, and misuse of power in hierarchical relationships. Digital harassment through messaging platforms, email, and social media has also become more prevalent, particularly since the rise of remote and hybrid work arrangements.

Courts have acknowledged the validity of virtual workplace communications as evidence in POSH cases, while reaffirming the importance of impact over intent. While classic cases of severe or repeated abuse have been on the decline, organisations with mature internal complaints committee (ICC) cultures are now more likely to receive complaints about nuanced conduct such as inappropriate remarks, exclusionary behavior, and subtle coercion.