POSH Act Compliance: A Guide for Indian Companies

Short answer: All companies in India, regardless of size, must comply with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, commonly known as the POSH Act. Core obligations include creating a POSH policy, conducting regular employee sensitisation, and, for companies with 10 or more employees, constituting an Internal Committee (IC) to handle complaints and filing an annual report with the District Officer.

What is the POSH Act and to whom does it apply?

The POSH Act, 2013 is a specific law designed to create a safe and secure work environment for women, free from sexual harassment. It applies to every single workplace in India, including private limited companies, LLPs, proprietorships, startups, and even non-profit organisations, irrespective of the number of employees. The definition of 'workplace' is broad and includes any place visited by the employee arising out of or during the course of employment, including transportation provided by the employer.

What are the key compliance requirements under the POSH Act?

The key requirements are drafting a clear POSH policy, constituting a properly structured Internal Committee (IC) if you have 10 or more employees, conducting regular awareness and training sessions for all employees, and filing a mandatory annual report. Section 4 mandates the formation of the IC, while Section 19 outlines the broader duties of the employer, which form the basis of your compliance checklist. Non-compliance can result in significant financial penalties and even cancellation of your business license.

Who needs to form an Internal Committee (IC)?

Every employer with 10 or more employees in any office or branch is legally required to constitute an Internal Committee by a written order. If a company has multiple offices or branches with 10 or more employees each, an IC must be constituted at each location. For workplaces with fewer than 10 employees, while an IC is not mandatory, the employer still has a duty to provide a safe environment, and any complaints would be directed to the Local Committee (LC) set up by the District Officer.

What is the composition of the Internal Committee?

The IC must be carefully constituted as per Section 4 of the POSH Act to ensure it is a balanced and empowered body. It must consist of:

• A Presiding Officer: This must be a woman employed at a senior level within the organisation.
• At least two employee members: These should preferably be employees committed to the cause of women or who have experience in social work or legal knowledge.
• One external member: This member must be from a non-governmental organisation (NGO) or association committed to the cause of women, or be a person familiar with issues relating to sexual harassment (like a lawyer or social worker).

At least half of the total members of the IC must be women. The members hold their position for a term not exceeding three years.

What are the duties of the employer under the POSH Act?

An employer's responsibilities go beyond just forming a committee. Under Section 19 of the Act, every employer must:

1. Provide a safe working environment.
2. Display the penal consequences of sexual harassment and the order constituting the Internal Committee at a conspicuous place in the workplace.
3. Organise workshops and awareness programmes at regular intervals for sensitising all employees.
4. Provide necessary facilities to the IC for dealing with complaints and conducting inquiries.
5. Assist in securing the attendance of the respondent and witnesses before the IC.
6. Make available any information the IC may require regarding the complaint.
7. Provide assistance to the woman if she chooses to file a police complaint (under the Bharatiya Nyaya Sanhita, 2023 or other relevant laws).
8. Treat sexual harassment as misconduct under the service rules and initiate action for such misconduct.
9. Monitor the timely submission of reports by the IC.

POSH Compliance Checklist

Compliance Task	Status (Yes/No)	Notes
Policy
POSH Policy drafted and shared with all employees?		Policy must be in simple, understandable language.
Internal Committee (if ≥ 10 employees)
IC constituted via a formal written order?
Senior woman employee appointed as Presiding Officer?		This is a mandatory requirement.
At least two other employee members appointed?
One external member (from NGO/expert) appointed?		IC is invalid without an external member.
At least 50% of IC members are women?		Check the final composition.
Awareness & Display
Details of IC Members displayed on office notice board?		Names and contact details must be clearly visible.
Annual awareness/training conducted for all employees?		Should be done at least once a year for everyone.
Reporting
Annual Report prepared by the IC by 31st January?		Report covers the previous calendar year (Jan-Dec).
Annual Report submitted by the employer to District Officer?		The employer is responsible for forwarding the IC's report.

Worked example

Scenario: CodeCraft Solutions Pvt. Ltd., a Bengaluru-based IT startup, has 25 employees (18 men, 7 women). The founder, Rohan, wants to ensure full POSH compliance for the calendar year 2026.

1. Applicability Check: With 25 employees, CodeCraft is legally required to form an Internal Committee.
2. Policy Formulation: Rohan engages a legal consultant to draft a comprehensive POSH policy. The policy is emailed to all employees and a copy is placed on the shared network drive.
3. IC Constitution:
   • Presiding Officer: He appoints the Director of Engineering, a senior woman in the company.
   • Employee Members: He appoints a male Senior QA Engineer and a female HR Manager.
   • External Member: He contacts a Bengaluru-based social worker who specialises in workplace issues and formally appoints her as the external member.
   • The total committee has 4 members, 2 of whom are women, satisfying the 50% requirement.
4. Awareness & Display: A formal order constituting the IC, along with the names and email addresses of all members, is placed on the office's main notice board. In November 2026, the company organises a mandatory 2-hour virtual workshop for all employees on the POSH Act and workplace ethics.
5. Annual Reporting: For the year ending 31 December 2026, the IC notes that one complaint was received, an inquiry was conducted, and recommendations were submitted to management, which were acted upon. The IC prepares its annual report detailing this. Rohan, as the employer, ensures this report is submitted to the office of the District Officer, Bengaluru Urban District, before the deadline.

By taking these steps, CodeCraft Solutions Pvt. Ltd. fulfills its legal obligations, mitigates the risk of a ₹50,000 penalty, and fosters a safer workplace culture.

Common mistakes

1. Ignoring the 10-employee threshold: Many small businesses mistakenly believe the law doesn't apply to them until they are much larger. The IC requirement kicks in at just 10 employees.
2. Improper IC Composition: Appointing a junior woman as Presiding Officer or, most commonly, completely forgetting to appoint an external member. An improperly constituted IC is equivalent to having no IC at all.
3. Paper Compliance: Forming an IC but never training its members or conducting awareness sessions for employees. The IC members must be trained on how to handle inquiries.
4. No Annual Report: Failing to prepare and submit the annual report to the District Officer. This is a clear compliance breach and can be easily identified by authorities.
5. Confusing POSH with a General Grievance Policy: The POSH Act is for sexual harassment of women. While a general code of conduct is good practice for all other grievances, it cannot replace the specific requirements of the POSH Act.

How SP & SC helps

Navigating the nuances of the POSH Act requires careful attention to detail. SP & SC Legal and Taxation Services provides end-to-end labour law compliance solutions for businesses of all sizes. We assist with drafting and vetting POSH policies, advising on the correct formation of the Internal Committee, connecting you with qualified external members, conducting professional and engaging awareness workshops for employees and IC members, and ensuring timely preparation and filing of your annual compliance reports. We help you build a compliant and respectful workplace.

Frequently asked questions

H3: Does the POSH Act apply to startups with less than 10 employees?

Yes, the Act applies to all workplaces. While you are not required to form an Internal Committee (IC), you must have a POSH policy and foster a safe environment. Any complaints from your employees would be handled by the Local Committee (LC) established by the District Officer for your area.

H3: Is POSH training mandatory for all employees?

Yes. Section 19(c) of the POSH Act obligates the employer to organise regular workshops and awareness programmes to sensitise all employees about the provisions of the Act and the company's policy against sexual harassment.

H3: Can a man file a complaint under the POSH Act?

No, the POSH Act, 2013 is specifically legislated to address the issue of sexual harassment of women at the workplace. However, companies are strongly advised to amend their internal HR policies or Code of Conduct to establish a gender-neutral process for addressing complaints of workplace harassment from any employee.

H3: What is the time limit for filing a sexual harassment complaint?

A complaint must be submitted to the Internal Committee within three months from the date of the incident (or the last incident in a series of incidents). The IC has the power to extend this deadline by another three months if it is satisfied that circumstances prevented the woman from filing her complaint within the initial period.

H3: Is the company's annual POSH report public?

The report is a statutory filing submitted to the District Officer. Additionally, Section 22 of the Act states that information relating to the number of cases filed and their disposal must be included in the company's annual report, which for a company registered under the Companies Act, 2013, is a public document.

Get a fixed-fee quote

Ensuring your company is fully POSH-compliant is a critical governance and risk management function. Contact SP & SC to share your company's details, and we will provide a written, fixed-fee quote for our end-to-end POSH compliance services. You can also reach us via WhatsApp at +91 90356 74566. We handle all legal, secretarial, and compliance challenges so you can focus on your business.