The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act) provides a structured inquiry process for complaints of sexual harassment. However, before a formal inquiry begins, the Act also offers an option for conciliation, allowing the parties to resolve the matter amicably under specific conditions.
Conciliation is not a compromise of justice—it is a voluntary settlement process available only at the request of the complainant and subject to strict legal safeguards. Understanding when conciliation is appropriate is essential for both employers and Internal Committees.
What Is Conciliation Under the POSH Act?
Conciliation is a mechanism through which the Internal Committee (IC) facilitates a mutually acceptable settlement between the complainant and the respondent before initiating a formal inquiry.
Its objective is to resolve the dispute without prolonged proceedings, provided the complainant willingly opts for this route.
When Can Conciliation Be Initiated?
Conciliation may be initiated only if:
- The complainant voluntarily requests conciliation.
- The request is made before the Internal Committee starts the formal inquiry.
- The Internal Committee is satisfied that the request is genuine and free from coercion or undue influence.
The employer or respondent cannot force the complainant to choose conciliation.
Monetary Settlement Is Strictly Prohibited
One of the most important provisions under the POSH Act is that:
A monetary settlement cannot be the basis of conciliation.
The law specifically prohibits resolving a sexual harassment complaint by paying compensation or money in exchange for withdrawing the complaint. This safeguard ensures that justice is not compromised through financial settlements.
What Can Be Included in a Conciliation Settlement?
A lawful conciliation agreement may include mutually agreed terms such as:
- A written apology from the respondent.
- A commitment to maintain professional conduct.
- Counselling or behavioural improvement measures.
- Workplace adjustments, where appropriate.
- Any other lawful terms acceptable to both parties.
The settlement must be fair, voluntary, and consistent with the objectives of the POSH Act.
What Happens After a Successful Conciliation?
If the parties arrive at a settlement:
- The Internal Committee records the terms of settlement.
- A copy of the settlement is provided to both parties.
- The employer implements the agreed terms.
- No formal inquiry is conducted, provided the settlement is fully complied with.
This allows the matter to be resolved efficiently while preserving workplace harmony.
What If the Settlement Is Not Followed?
If either party fails to comply with the terms of the conciliation agreement, the complainant may inform the Internal Committee.
In such cases, the Internal Committee may proceed with a formal inquiry into the complaint in accordance with the provisions of the POSH Act.
Important Points to Remember
- Conciliation is completely voluntary.
- It can only be initiated at the complainant's request.
- It must occur before the inquiry begins.
- Monetary settlements are not permitted.
- If conciliation fails or its terms are violated, the inquiry process resumes.
These safeguards ensure that conciliation remains a fair and legally compliant option rather than a means of avoiding accountability.
Why Organizations Should Understand Conciliation?
Employers and Internal Committee members should clearly understand the legal framework governing conciliation to ensure that:
- Employees are informed of their rights.
- Settlements remain voluntary and lawful.
- No pressure is placed on the complainant.
- The organization complies fully with the POSH Act.
- Workplace disputes are handled fairly and professionally.
Proper understanding of conciliation helps organizations balance employee welfare with legal compliance.
How 
Can Help You?
At BizGlobal, we provide end-to-end POSH compliance solutions to help organizations implement the POSH Act effectively and lawfully.
Our services include:
- Drafting and implementation of POSH Policies
- Constitution and guidance for Internal Committees (IC)
- Advisory on conciliation and inquiry procedures
- POSH compliance audits
- Complaint handling and documentation support
- Annual compliance assistance
- End-to-end POSH consultancy for startups, MSMEs, corporates, educational institutions, hospitals, and NGOs
We also provide professional POSH Training for employees, HR professionals, managers, leadership teams, and Internal Committee members. Our expert-led training programs help organizations understand legal responsibilities, complaint resolution procedures, conciliation rules, and best practices for creating a safe and respectful workplace.
Conclusion
Conciliation under the POSH Act offers an opportunity to resolve workplace disputes amicably, but only under carefully regulated conditions. Since it is voluntary and cannot involve monetary settlements, it preserves the rights of the complainant while encouraging fair and respectful resolution where appropriate.
Organizations that understand and correctly implement the conciliation process strengthen employee confidence, maintain legal compliance, and foster a workplace culture built on dignity and trust.
Need expert assistance with POSH compliance?
Contact BizGlobal today at +91-7982729187 and get your POSH policy, Internal Committee setup, conciliation and inquiry guidance, compliance advisory, documentation, and professional POSH training handled by experienced experts.