POSH Compliance

POSH Compliance: complete guide

Introduction

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, commonly known as the POSH Act, places a clear legal duty on every employer in India to provide a safe working environment for women and to put in place a system for preventing and redressing sexual harassment. The Act grew out of the Supreme Court's guidelines in the Vishaka case and applies to workplaces of every kind and size, in both the public and private sectors, organised and unorganised.

The Act defines sexual harassment broadly. It covers unwelcome physical contact and advances, a demand or request for sexual favours, sexually coloured remarks, showing pornography, and any other unwelcome physical, verbal or non-verbal conduct of a sexual nature. It also covers circumstances such as implied or explicit promises of preferential treatment, threats about employment status, interference with work, and creating an intimidating, offensive or hostile work environment, where these are connected with such conduct. The term "workplace" includes not only the office but also places visited during the course of employment, including transport provided by the employer, client sites, events and, as courts have recognised, virtual and work-from-home settings.

Compliance under the POSH Act is not a one-time registration. Employers with ten or more employees must constitute an Internal Committee at each office or administrative unit, with a presiding officer who is a senior woman employee and an external member from an NGO or a person familiar with issues relating to sexual harassment. Every employer must adopt and display a policy, organise awareness programmes and training, assist the committee in its work, act on its recommendations, and include information about cases in its annual report. Non-compliance can lead to a fine and, for repeated violations, higher penalties and cancellation of the employer's licence or registration.

Our POSH compliance service helps you set up and maintain a compliant framework. Our team of advocates and workplace compliance professionals drafts your policy, helps constitute the Internal Committee, provides an external member where needed, conducts awareness and committee training, prepares the notices and formats, and supports the annual report to the district authority. The Act, rules and court decisions continue to develop, and we check the current requirements, including any state-specific filing practices, at the time of each engagement.

Who Needs It

The POSH Act applies to every employer, but the specific obligations depend on the size and structure of the organisation:

• Organisations with ten or more employees. Companies, LLPs, partnership firms, proprietorships, trusts, societies, schools, hospitals, clinics, hotels and others with ten or more employees must constitute an Internal Committee at each office or unit with ten or more employees.
• Organisations with fewer than ten employees. These still have obligations under the Act. Complaints from their employees, and complaints against the employer, are handled by the Local Committee constituted by the District Officer. The employer must still adopt a policy, raise awareness and cooperate with the Local Committee.
• Organisations with multiple offices or branches. An Internal Committee is required at each office or administrative unit located at different places, which may need separate committees or a carefully structured approach.
• Startups and growing companies that have recently crossed ten employees and need to put a framework in place quickly.
• Companies with remote or hybrid workforces, where the policy and awareness programmes must address virtual conduct and communication channels.
• Businesses with contract workers, interns and trainees. The definition of employee under the Act includes temporary, ad hoc, daily wage, contract and probationary workers, trainees, apprentices and interns, whether paid or not.
• Companies preparing for due diligence or audits. Investors, clients and auditors increasingly check POSH compliance as part of their review.
• Listed and large companies, which must make POSH disclosures in their board report and, for some, in other regulatory reports.

Key Benefits

• Legal compliance. You meet your obligations under the POSH Act and avoid fines and the risk of more serious penalties for repeated non-compliance.
• A safer workplace. A clear policy, trained committee and awareness programmes help prevent harassment and encourage people to raise concerns early.
• Fair and confidential redressal. A properly trained Internal Committee follows due process, which protects both the complainant and the respondent and reduces the risk of challenges to its findings.
• Reduced legal and reputational risk. Inquiries conducted without following the Act and the principles of natural justice are often set aside by courts or criticised publicly. A sound framework protects the organisation.
• Confidence for employees. Employees, especially women, are more likely to join and stay in an organisation that takes workplace safety seriously.
• Readiness for clients and investors. Many clients and investors require evidence of POSH compliance during onboarding and due diligence.
• Correct annual reporting. Annual reports to the district authority and disclosures in the board report are prepared accurately.
• Access to an independent external member. We can arrange an external member with the background required by the Act, which many organisations find difficult to source.

Internal Committee compared with Local Committee. An Internal Committee is constituted by the employer and handles complaints from its own workplace. A Local Committee is constituted by the District Officer and handles complaints from establishments with fewer than ten employees, complaints against the employer, and complaints from domestic workers and the unorganised sector. Both follow the same procedure under the Act and rules.

How an inquiry works in practice. A complaint must be made in writing within three months of the incident, which can be extended by a further three months for valid reasons. Before inquiry, the committee may attempt conciliation at the request of the complainant, but monetary settlement cannot be the basis of conciliation. If there is no conciliation, the committee conducts an inquiry following the principles of natural justice and completes it within ninety days. It then gives its report and recommendations to the employer, who must act on them within sixty days.

Eligibility and Legal Requirements

POSH compliance is governed by the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Rules, 2013, together with court decisions on their interpretation. The key requirements are:

• Constitution of the Internal Committee. Every employer with ten or more employees must constitute an Internal Committee by written order for each office or administrative unit.
• Composition. The committee must have a presiding officer who is a woman employed at a senior level, at least two members from among employees who are committed to the cause of women or have experience in social work or legal knowledge, and one external member from an NGO or association committed to the cause of women or a person familiar with issues relating to sexual harassment. At least half of the members must be women.
• Term. Members hold office for a period not exceeding three years.
• Policy. The employer must formulate and widely disseminate a policy on prevention, prohibition and redressal of sexual harassment.
• Display. The employer must display at conspicuous places the penal consequences of sexual harassment and the order constituting the Internal Committee.
• Awareness and training. The employer must organise workshops and awareness programmes at regular intervals for employees, and orientation and skill-building programmes for committee members.
• Facilities and support. The employer must provide the committee with the necessary facilities to deal with complaints and conduct inquiries, and assist in securing the attendance of respondents and witnesses.
• Interim relief. During an inquiry, at the request of the complainant, the committee may recommend interim relief such as transfer of the complainant or respondent, or leave for the complainant.
• Confidentiality. The identity of the complainant, respondent and witnesses, and the details of the inquiry and recommendations, must not be published or disclosed, except as permitted by the Act.
• Annual report. The Internal Committee must prepare an annual report with details of complaints received, disposed of and pending, and submit it to the employer and the District Officer. The employer must include the number of cases and their disposal in its own annual report, or inform the district authority where no annual report is required.
• Penalties. Failure to constitute the committee, act on its recommendations or comply with other duties can lead to a fine, higher penalties for repeat offences, and cancellation of the employer's licence or registration.

Some states have introduced online portals or specific procedures for registration of committees and filing of annual reports. Requirements may change, and we check the current position for your state at the time of engagement.

Step-by-Step Guide

1. Initial assessment. We understand your organisation's size, locations, workforce mix, existing policies and any past complaints or committees.
2. Gap analysis. We review your current POSH framework against the Act, rules and court guidance and list the gaps to be addressed.
3. Drafting the policy. We draft or update a POSH policy suited to your workplace, covering definitions, the complaint process, inquiry procedure, interim relief, confidentiality, and consequences of misconduct and false complaints.
4. Constituting the Internal Committee. We advise on the selection of the presiding officer and employee members, and help you identify and appoint an external member who meets the requirements.
5. Issuing the committee order. We draft the order constituting the committee for each office or unit, with the names, roles and term of members.
6. Display notices. We prepare the notices showing the penal consequences of sexual harassment and the committee details, for display in offices and on internal systems.
7. Awareness sessions for employees. We conduct awareness sessions, in person or online, explaining what constitutes harassment, how to raise a complaint and the protections available.
8. Training for committee members. We conduct orientation and skill-building sessions for the committee on handling complaints, conciliation, inquiry procedure, natural justice, evidence and report writing.
9. Formats and records. We provide formats for complaints, notices to respondents, inquiry minutes, interim relief recommendations and the inquiry report, and set up a confidential record-keeping process.
10. Annual report and review. We help the committee prepare its annual report, support the employer's disclosure and submission to the district authority, and review the framework each year.

Documents Checklist

Organisation details:

• Certificate of incorporation or registration of the organisation
• List of offices, branches and administrative units with addresses
• Number of employees at each location, including contract workers, interns and trainees
• Existing HR policies, code of conduct and employee handbook

For the Internal Committee:

• Names, designations and contact details of proposed presiding officer and employee members
• Consent of each member to serve on the committee
• Details of the proposed external member, with background and consent, or a request for us to arrange one
• Earlier committee orders, if a committee already exists

For training and awareness:

• Number of employees and committee members to be trained
• Preferred language and mode of training, whether in person or online
• Work schedules and locations for planning sessions

For annual reporting:

• Number of complaints received, resolved and pending during the year, maintained confidentially
• Details of awareness programmes and training conducted
• Format or portal requirements of the district authority in your state

How Long It Takes

Setting up a POSH framework usually takes two to four weeks from the start of the engagement, depending on the size of the organisation and the availability of members:

• Assessment and gap analysis: two to three working days after we receive the details.
• Policy drafting and approval: five to seven working days, including one round of comments.
• Committee constitution and order: three to seven working days, depending on how quickly members are identified and consent.
• Display notices and formats: shared along with the policy and committee order.
• Awareness sessions and committee training: scheduled within one to two weeks of the committee being constituted, depending on your team's availability.
• Annual report: prepared after the end of the calendar or financial year, in the format followed in your state.

Organisations with many locations, multiple languages or large workforces may need a longer rollout for training sessions.

Pricing

Our professional fee for POSH Compliance is ₹ 9,999.

This covers:

• Assessment and gap analysis of your current POSH framework
• Drafting of the POSH policy
• Guidance on constituting the Internal Committee and drafting of the committee order
• Display notices and complaint and inquiry formats
• One awareness session for employees
• One orientation and training session for Internal Committee members
• Support with the annual report format

The fee covers one office or administrative unit. Additional locations, additional training sessions, sessions in multiple languages, an external member's engagement fee, support during the handling of specific complaints and inquiries, and representation in related proceedings are quoted separately.

Common Mistakes to Avoid

• Assuming small offices are exempt. Organisations with fewer than ten employees do not constitute an Internal Committee, but they still have duties under the Act and their employees can approach the Local Committee.
• Forming a committee on paper only. A committee that is not trained, not known to employees or not functional does not meet the Act's purpose and may not withstand scrutiny.
• Choosing an ineligible external member. The external member must be from an NGO or association committed to the cause of women or a person familiar with issues relating to sexual harassment. A friend of management or a former employee may not be suitable.
• Wrong composition. At least half the members must be women, and the presiding officer must be a senior woman employee. If a senior woman employee is not available at a location, the Act provides for nominating one from another office or unit.
• Letting the committee's term lapse. Members hold office for up to three years. The committee must be reconstituted before the term ends.
• Ignoring virtual workplaces. Policies should cover conduct on calls, chats and other digital channels and at work-from-home settings.
• Not following natural justice. Denying the respondent a fair chance to respond, or deciding without evidence, can lead to the inquiry being set aside.
• Breaching confidentiality. Disclosing details of complaints or inquiries can attract penalties under the Act.
• Missing the annual report. The annual report and disclosures are mandatory and are often checked by authorities and auditors.

What Happens After

Once your POSH framework is set up, it needs ongoing attention:

• Regular awareness programmes for all employees, including new joiners, at intervals that keep the policy fresh in people's minds.
• Refresher training for the committee, especially when new members are appointed or the law and case law develop.
• Handling complaints in a timely, fair and confidential way, with the committee completing inquiries within ninety days and the employer acting on recommendations within sixty days.
• Reconstitution of the committee when members leave or their term ends.
• Annual reporting by the committee and the employer, and disclosure in the board report or other filings where required.
• Periodic review of the policy to reflect changes in the organisation, its locations and the law.

Our team can support you with ongoing training, external member services, complaint handling support and annual compliance reviews.

FAQs

Does the POSH Act apply to my organisation?

Yes. The Act applies to every workplace in India. Organisations with ten or more employees must constitute an Internal Committee. Smaller organisations have other duties, and their employees can approach the Local Committee.

Who counts as an employee under the Act?

The definition is wide. It includes regular, temporary, ad hoc, daily wage, contract and probationary workers, trainees, apprentices and interns, whether paid or unpaid, and whether employed directly or through an agent.

What must the Internal Committee look like?

It needs a senior woman employee as presiding officer, at least two employee members, and one external member from an NGO or a person familiar with issues relating to sexual harassment. At least half the members must be women.

Do we need a committee at every office?

The Act requires an Internal Committee at each office or administrative unit located at different places. We help you structure committees for multi-location organisations.

Can men file complaints under the POSH Act?

The Act protects women. Many organisations adopt gender-neutral policies that also cover complaints by men and others under their internal code of conduct, while following the Act for complaints by women.

What is the time limit for filing a complaint?

A complaint must be made within three months of the incident, or of the last incident in a series. The committee can extend this by up to three months if it is satisfied that circumstances prevented filing earlier.

How long does an inquiry take?

The committee must complete its inquiry within ninety days. The employer must act on the committee's recommendations within sixty days of receiving the report.

Can a complaint be settled through conciliation?

Yes, at the request of the complainant, before the inquiry starts. However, monetary settlement cannot be the basis of conciliation.

What are the penalties for non-compliance?

An employer who fails to constitute the committee or comply with its other duties can be fined. Repeated violations can lead to higher penalties and cancellation of the employer's licence or registration.

Does the external member need to be paid?

The rules provide for fees or allowances to the external member for holding proceedings. We can arrange an external member, whose engagement fee is quoted separately.

Does POSH apply to work-from-home employees?

Yes. The workplace includes any place visited by the employee during the course of employment, and conduct through digital channels can amount to harassment. Policies should address remote work.

How often should training be conducted?

The Act requires awareness programmes at regular intervals. Most organisations conduct sessions at least once a year and at induction for new joiners.

What is the annual report under the POSH Act?

It is a report by the Internal Committee with details of complaints received and disposed of, and awareness programmes held. It is submitted to the employer and the District Officer, and the employer discloses the information in its annual report.

Will you handle actual complaints and inquiries?

We can support the committee with procedure, documentation and report writing during a specific inquiry. This support is quoted separately and does not replace the committee's own independent role.

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