Effective July 14, 2025, India has introduced stricter workplace compliance requirements under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act and updates to the Maternity Benefit Act. The new reporting rules apply to annual board reports and are aimed at increasing corporate accountability in preventing and addressing workplace sexual harassment.
Specifically, these rules require detailed disclosures about sexual harassment incidents, how they were handled, and steps taken to prevent them, along with a confirmation of maternity policy compliance. These obligations are now mandatory for companies operating in India, including subsidiaries of global businesses, and must be documented as part of annual corporate governance reporting.
For businesses hiring in India, particularly those managing distributed or hybrid teams without in-country HR teams, staying compliant with these sensitive and complex requirements presents a significant challenge. This is where Employer of Record (EOR) services can offer a compliant, efficient solution.
Understanding the New Compliance Requirements
Effective July 14, 2025, Indian companies are required to include the following in their board reports:
The number of sexual harassment complaints received during the financial year.
The number of complaints resolved and those pending for more than 90 days.
A summary of programs, workshops, or awareness initiatives conducted on sexual harassment prevention.
A statement of compliance under the Maternity Benefit Act.
Confirmation of the Internal Complaints Committee (ICC) being established as mandated under the Sexual Harassment Act.
Even businesses exempt because of size thresholds must include a declaration of non-applicability in their board reports.
Also, companies with more than 10 employees must set up an ICC. They must investigate and resolve all complaints within 60 days. Non-compliance can lead to penalties of up to INR 300,000, which is approximately equivalent to USD 3,472.86.
Why This Matters for Global Employers
For global businesses hiring in India, particularly those operating without a local legal entity, the new reporting requirements introduce an added layer of regulatory complexity. Many organisations may lack on-the-ground HR teams to implement and monitor compliance, as well as in-depth knowledge of Indian labour law nuances, such as the structure of the Internal Complaints Committee (ICC) and the correct formatting for reports.
Additionally, managing distributed or hybrid teams can make it difficult to track whether employee size thresholds have been met, and unclear accountability structures may hinder the timely completion of investigations within the legally mandated 60-day window. Failure to comply not only exposes businesses to legal and financial risk, it can also damage brand reputation and erode employee trust.
How an Employer of Record (EOR) in India Can Help
An Employer of Record in India is the simplest way for global companies to remain compliant with evolving Indian employment regulations, especially when it comes to sensitive issues like workplace harassment.
By partnering with an EOR, you gain:
A local legal employer who understands and complies with the Sexual Harassment Act, Maternity Benefit Act, and all related labour laws
Full compliance management, including the setup of ICCs, policy enforcement, and timely reporting
Payroll and benefits alignment with statutory entitlements under Indian law
Peace of mind that all workforce-related legal risks are being professionally handled
With Atlas as your EOR partner, you don't need to create HR or legal teams in India. We handle the hard work, so you can focus on growing your business.
What Employers Should Do Next
If you're already hiring in India, or planning to in the near future, now is the time to act. Start by reviewing your existing HR policies related to harassment prevention and maternity compliance to ensure they align with the latest legal requirements. Audit your current reporting procedures and assess your organisation's readiness to meet the new board disclosure rules.
It's also important to consult with your EOR provider to confirm that Internal Complaints Committees (ICCs) are properly established and fully compliant. If you're expanding into India, be sure to factor these legal updates into your hiring, onboarding, and operational plans to stay ahead of compliance risks.