POSH Compliance Checklist for Indian Businesses: Key Duties for Employers Under Indian Law

Introduction

In recent years, regulatory scrutiny on workplace conduct has sharpened significantly. With increased awareness around gender safety and corporate accountability, POSH compliance has evolved into a core legal and operational requirement for every Indian business, regardless of size, sector, or ownership. The POSH compliance checklist for Indian businesses is a legal mandate tied directly to employer liability and organisational culture.

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (“POSH Act”) provides the statutory framework for preventing and redressing sexual harassment in the workplace. It applies to all workplaces in India, including startups, LLPs, private companies, factories, schools, and even non-profit organisations. Even if an organisation employs fewer than 10 people, the POSH Act still applies in many practical ways, especially when female consultants or vendors are engaged.

Legal non-compliance is no longer a passive risk. Companies that fail to implement employer obligations under POSH Act, such as not constituting an Internal Complaints Committee or ignoring POSH training and awareness programs, face real consequences: regulatory fines, adverse court rulings, reputational damage, and even civil/criminal liability for top management.

This article sets out a practical and legally grounded POSH compliance checklist for Indian businesses, covering:

ICC formation and appointment obligations
Scope and definitions under the POSH Act
Annual reporting duties and policy display requirements
Structuring effective POSH training and awareness programs
Avoiding common compliance pitfalls

Employers who treat the law as an afterthought do so at their own peril. POSH is not about formality; it’s about liability.

Understanding the POSH Act and Its Scope

The POSH Act lays down statutory duties for all employers in India to ensure that women are protected from sexual harassment in the workplace. While popularly associated with large corporations, the Act has a broader application and does not distinguish based on the size or nature of the business. Hence, it becomes critical to start the POSH Compliance Checklist for Indian Businesses with a proper understanding of its scope. Read our other article: Women Working Hours Under OSHWC Code, 2020: Night Shift Compliance Explained

Who the Law Applies To

The POSH Act applies to:

All organisations (private or public), including partnerships, LLPs, sole proprietorships, companies, trusts, NGOs, and educational institutions.
Any workplace in India where women are employed directly or through third-party engagement.
Employers who engage women in any role, full-time, part-time, consultant, intern, freelancer, daily-wager, or probationer.

Importantly, the presence of even one woman (including a temporary vendor staff) triggers employer obligations under the POSH Act.

Definition of ‘Workplace’ and ‘Aggrieved Woman’ under the POSH Act

The Act defines ‘workplace’ under section 2(o) of the Act and broadly includes:

Corporate offices, factories, shops, and warehouses
Client premises, field visits, off-site locations
Work-from-home setups or virtual workspaces
Transport provided by the employer (e.g., cabs, shuttles)

An ‘aggrieved woman’ as defined under section 2(a) of the Act is:

An employee (permanent or temporary).
A female client, customer, visitor, intern, or student.
A female vendor or contractual staff (even if hired through a third party).

The legal risk arises not just from employee-to-employee harassment but also from third-party interactions in the workplace ecosystem.

What Constitutes Sexual Harassment Under the POSH Act?

Under Section 2(n), the Act defines sexual harassment to include:

Physical contact and advances.
Demand or request for sexual favours.
Making sexually coloured remarks.
Showing pornography.
Any unwelcome physical, verbal, or non-verbal conduct of a sexual nature.

It also recognises implied, subtle, or indirect forms of harassment such as:

Passing lewd comments or suggestive messages.
Repeated sexual jokes or innuendo.
Staring, winking, or inappropriate gestures.
Unwelcome touching or invasion of personal space.

What matters under the law is not the intent of the harasser but whether the conduct was unwelcome and caused discomfort to the woman.

Where the conduct is linked to a professional disadvantage, denial of promotion, threat of termination, or work pressure, it qualifies as quid pro quo harassment, which is considered especially serious under the Sexual Harassment of Women at Workplace Act, 2013.

Internal Complaints Committee Formation and Structure

One of the most overlooked, but absolutely mandatory, requirements under the POSH framework is the Internal Complaints Committee formation. For every Indian workplace that employs 10 or more people (whether male or female, permanent or temporary), setting up an Internal Committee (IC) is a statutory duty. If the IC is not set up properly as prescribed, the company is already in violation of the law, and any grievance process that takes place may be considered legally invalid.

ICC Constitution and Minimum Requirements

The Sexual Harassment of Women at Workplace Act lays out a strict structure for the IC’s formation. An employer is not free to constitute the IC at their own convenience. The members must be nominated through a formal internal process, and every requirement under Section 4 of the Act must be satisfied.

Here’s how the composition works:

The Presiding Officer must be a senior-level woman employee, ideally someone with a level of sensitivity and basic awareness about workplace conduct issues.
Two other members must be nominated from within the organisation, preferably people who have either done work on gender equality or are familiar with labour law and employment rights.
An external member is mandatory. This person should be someone from outside the company, either from an NGO working on women’s issues or a person with relevant legal expertise.

Further, the law requires that at least half of the committee members must be women.

Many businesses in India make one of two mistakes here. Either they fail to set up an IC altogether, or they appoint someone internal as an ‘external’ member, both of which go directly against the POSH Act.

External Member Appointment: Caution and Documentation

The inclusion of an external member is a requirement grounded in the need for neutrality and fair process. But most employers don’t realise that appointing a compliance officer from a sister concern or hiring a consultant without relevant experience won’t hold up if the IC’s decision is ever legally challenged.

Proper appointment includes:

Selecting an external person who is active in the field, preferably someone who has worked with an NGO or has been part of prior ICCs.
Issuing a formal appointment letter signed by authorised company representatives.
Recording the resolution in writing and ensuring that all employees are notified about the updated IC structure.

The absence of this process has caused real trouble in litigation. There are cases where High Courts have questioned the integrity of proceedings simply because the external member’s credentials were not established or verified in the company’s records.

Tenure and Replacement Obligations

Most employers also forget that the IC is not a permanent body. Members can’t just remain on the committee indefinitely.

Each IC member is to be appointed for a term of no more than 3 years.
If someone resigns, is transferred, or becomes unavailable, the employer has to replace that person promptly.
Any such change must be formally communicated to the workforce, not just recorded in HR files.
Letters of appointment or removal should be maintained in the compliance folder for inspection if needed.

Failure to follow these replacement rules can render the IC defunct, and that has implications for the validity of any decisions they take.

Consequences of Non-Formation or Improper Constitution

If an organisation fails to constitute the IC in accordance with the POSH Act, the law imposes financial and regulatory consequences.

A fine of up to ₹50,000 may be imposed for non-compliance under section 26 of the Act.
If non-compliance is repeated or not rectified, the business may face withdrawal of registration or cancellation of government licences.
It could also be disqualified from applying for government tenders or public contracts.

Courts in India have, in multiple instances, declared IC inquiries as void due to improper committee constitution. One of the most common errors is the absence of an external member with a credible background. The other is appointing a junior woman employee as Presiding Officer, when the Act requires a senior-level representative.

In short, if a business is looking to follow the POSH compliance checklist for Indian businesses, there’s no greater priority than correctly constituting the IC. It’s not enough to have a policy or training, as without a valid IC in place, the entire POSH compliance framework collapses.

Employer Obligations Under the POSH Act

For any business operating in India, compliance with the Sexual Harassment of Women at Workplace Act, 2013, is not merely a paperwork task; it’s a statutory obligation with legal and reputational consequences. Beyond Internal Committee formation, employers have ongoing duties that must be addressed proactively. Below is a breakdown of key responsibilities of employers under the POSH compliance for Indian businesses, based on Section 19 and other operative provisions of the Act.

Framing a POSH Policy

Every employer is required to frame and circulate a detailed policy against sexual harassment in the workplace. The policy must reflect the spirit of the POSH Act, and clearly define:

What constitutes sexual harassment (with examples).
Roles and composition of the Internal Committee.
Procedures for filing, investigating, and resolving complaints.
Measures to protect confidentiality and avoid retaliation.

The policy should be:

Drafted in clear language (preferably in English + regional language).
Applicable to employees, consultants, interns, and visitors.
Updated annually based on legal amendments and case precedents.

Most importantly, the policy must not exist in isolation. It should be referred to in employment contracts, HR handbooks, and induction modules.

Display of Policy and IC Details at Workplace

As per Section 19(b) of the Act, the employer must:

Display conspicuously at the workplace:
- The consequences of sexual harassment.
- The composition of the Internal Committee.
- The contact details of IC members.

This should be placed in all office locations, including:

Reception areas and entrances.
HR cabins and notice boards.
Cafeterias and common spaces.
Virtual platforms (in case of remote setups).

Failure to display such information can be treated as a breach of employer obligations under POSH Act, even if other formalities are followed.

Annual Filing Requirement (POSH Report to District Officer)

Under Rule 14 of the POSH Rules, every employer is required to submit an annual report to the District Officer. The report must include:

Number of complaints received and resolved
Pending complaints (with reasons)
Nature of action taken by the employer
Details of ICC meetings held

This filing must be done by 31st January each year and must be signed by an authorised officer of the company.

Failing to submit the report may attract scrutiny during labour inspections or legal disputes. Many otherwise compliant companies end up with audit issues due to this one oversight.

Organising POSH Training and Sensitisation Programs

This is one of the most vital and least complied-with items in the POSH compliance checklist for Indian businesses. Under the law, employers are required to:

Conduct regular POSH training and awareness programs.
Ensure all new joiners receive induction on the policy.
Provide refresher sessions annually (preferably with real case studies).
Train IC members separately on inquiry procedures and evidence handling.

These programs can be in-person, virtual, or hybrid, but must be documented. Certificates of participation, attendance records, and training feedback forms must be retained by HR.

Employers are advised to engage certified external trainers or law firms to handle the sessions, especially for senior management and ICC-level training.

Investigation and Redressal Process

Once a complaint is filed, the Internal Complaints Committee has to follow a structured process that is not only fair but also legally defensible. Under the Sexual Harassment of Women at Workplace Act, 2013, any failure to comply with procedural safeguards may lead to the entire inquiry being invalidated in court. Below is a detailed explanation of how an inquiry must be handled.

Timeline for Complaint Resolution

The Act prescribes clear timelines:

A complaint must be filed within 3 months of the incident. This can be extended additionally up to 3 months if the complainant has sufficient cause.
IC must initiate an inquiry within 7 days of receiving the complaint.
The entire inquiry must be completed within 90 days.
The final report must be submitted to the employer within 10 days of completion.
Employer must act on recommendations within 60 days.

All of these deadlines must be tracked carefully. Many ICs go wrong here, either delaying action or not documenting timelines, which becomes a problem in litigation or appeals.

Due Process and Natural Justice in ICC Hearings

Every ICC proceeding must follow the principles of natural justice, including:

Both parties must receive copies of all written submissions.
Opportunity to be heard must be given to both sides.
Witnesses (if any) should be cross-examined properly.
Proceedings must be confidential and non-adversarial.

The IC must act impartially, keep minutes, and avoid any conflict of interest. The complainant cannot be forced to mediate or withdraw. A written order must be issued at the end of the inquiry, with reasoning and recommendations.

If the IC fails to follow due process, its findings can be struck down by courts, and the employer may be held vicariously liable.

Confidentiality Obligations During Proceedings

All parties involved, including the IC, employer, complainant, respondent, and witnesses, are bound by confidentiality under Section 16 of the POSH Act. Breach of confidentiality may lead to:

A penalty as per the company’s disciplinary policy.
Civil liability for reputational harm.
Invalidation of the inquiry process.

The employer should sensitise all involved and circulate internal guidelines on information handling during inquiries.

Penalties for False or Malicious Complaints

The Act also provides for penalising false complaints, but with a high threshold. The IC can recommend action against the complainant only if:

The complaint was made with malicious intent.
It was knowingly false or misleading.
There is documentary proof of such intent.

However, the inability to prove a complaint does not automatically mean it was false.

Employers must be cautious in accepting such recommendations from IC, and in some cases, may need to conduct a separate HR review before initiating action.

POSH Training and Awareness Requirements

Training is not an optional HR initiative; it is a mandatory requirement under the Sexual Harassment of Women at Workplace Act, 2013. The law expects employers to conduct POSH training and awareness programs at regular intervals and tailor them for different levels within the organisation. This is a core part of the POSH compliance checklist for Indian businesses, and failure to carry out training can invalidate the employer’s compliance defence in court.

Types of Training (for Employees, ICC, and Management)

Different stakeholders in an organisation require different types of training content:

Employee Trainings:
- Focus on what constitutes sexual harassment
- Procedures to report complaints confidentially
- Rights and responsibilities of all employees
- Do’s and don’ts in workplace interactions
IC Member Trainings:
- Legal provisions of the POSH Act
- How to conduct inquiries, collect evidence
- Drafting orders, procedural fairness, and confidentiality
- Handling tricky cases such as anonymous complaints or retaliation
Management/Senior Leadership:
- Understanding legal risks and personal liability
- Building a culture of zero tolerance
- Role of leadership in enforcement and example-setting

A one-size-fits-all approach to training dilutes the effectiveness and legal validity of the program.

Frequency and Documentation of Sessions

There is no fixed frequency under the law, but best practices suggest:

Once a year for full staff refresher training
IC-specific training every 12 months, especially if composition changes
POSH induction for all new joiners within 30 days
Managerial sensitisation every 12–18 months

From a compliance perspective, every training must be documented. That includes:

Session agenda and trainer credentials
Attendance sheet with signatures (physical or digital)
Feedback forms
Copy of the training deck
Training certificate (if applicable)

Employers who skip documentation cannot defend themselves by simply stating that a training “was conducted.” The law expects demonstrable proof.

Using External Trainers vs Internal HR

This is a common dilemma. While internal HR may be capable of delivering general POSH awareness, there are serious drawbacks:

Criteria	External Trainers	Internal HR
Neutrality	Perceived as unbiased	May be seen as aligned with management
Legal Expertise	Usually stronger	May lack in-depth legal training
Engagement	Real-life examples & scenarios	May be overly policy-focused
Court Acceptability	Seen as more credible during inquiry	Less persuasive without certification

Employers handling senior leadership or IC-specific training are strongly advised to engage external professionals. It reduces bias, brings authority, and protects the company from future challenges.

Case Law Impact on Training Sufficiency

Courts in India have made several observations recently about the employer’s duty to create a culture of awareness. In a 2023 Delhi High Court ruling, the court held that a lack of training or awareness among employees can lead to the employer being held liable even if the IC process was correct.

In another notable case, the court found that the IC’s mishandling of the matter was due to a lack of training, and the employer was asked to reinitiate the inquiry afresh after engaging legal experts.

This underscores that POSH training and awareness programs are not a tick-box exercise; they go to the root of liability.

Common Mistakes in POSH Compliance

Even businesses that believe they are compliant with the POSH Compliance Checklist for Indian Businesses often make serious errors that can cost them in a legal dispute. Below are the most common lapses observed during compliance audits and litigation reviews.

One of the biggest mistakes is delegating all POSH responsibilities to the HR department and treating it as a workplace culture issue rather than a legal obligation under the POSH Act.

This leads to a lack of legal review of policies.
Training gets diluted into generic content.
ICC becomes a ‘token’ committee without real authority.

The better practice is to treat POSH compliance as a joint HR-legal responsibility, with accountability to the board or senior leadership.

Relying on Improperly Constituted ICs

Many companies either:

Do not have a properly constituted Internal Committee as per Section 4, or
Appoint internal members who do not meet the eligibility criteria.
Fail to appoint an external member altogether or select someone without proper documentation.

This often comes to light only when a complaint is filed and the IC’s legitimacy is challenged in court. By then, the damage is already done.

Employers must keep a checklist:

Was the Presiding Officer a senior-level woman?
Were 50% of members women?
Was an external member from an NGO or legal background appointed?
Are appointment letters and CVs on file?

Anything less than a “yes” to all of the above can collapse your legal defence.

Missing the Annual Report Deadline

As mentioned earlier, the annual report to the District Officer must be filed by 31st January every year. Missing this deadline, either due to oversight or misunderstanding, is a frequent issue, especially among small and medium-sized companies.

Consequences include:

Non-compliance citations during labour inspections.
Loss of eligibility for government contracts.
Red flags during due diligence by investors or acquirers.

Businesses must build a compliance calendar and assign a person responsible for this filing.

No Gender Sensitisation of Senior Management

Even companies that conduct training for employees and IC members often neglect leadership. This is a major issue, as the top leadership must:

Model compliant behaviour.
Know how to handle escalated complaints.
Avoid actions that may be perceived as retaliation.

Lack of POSH training and awareness programs for senior leaders has resulted in court observations on the company’s “tone from the top.” In some cases, damages have been awarded due to an absence of senior-level engagement with the POSH process.

Penalties and Legal Consequences of Non-Compliance

Non-compliance with the provisions under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, is not a mere procedural lapse; it may result in legal, regulatory, and reputational setbacks for an organisation. The law imposes a direct duty on employers to ensure robust implementation, and courts have, over the years, taken an increasingly strict view of non-adherence.

The following consequences may arise where a company fails to meet the minimum statutory requirements outlined in the POSH legislation.

Failure to Form an IC or Improper Constitution

An improperly constituted Internal Committee, either due to incorrect composition, absence of the external member, or failure to issue formal appointment letters, is one of the most commonly identified violations. Under Section 26 of the POSH Act:

The employer may face a monetary fine extending to ₹50,000 for the first contravention.
In cases of repeat violations, the fine may be doubled.
Continued failure to comply may also lead to cancellation of the employer’s registration, licence, or other statutory approvals.

Additionally, courts have invalidated internal inquiry proceedings in several cases where the committee lacked jurisdiction due to improper formation, thereby setting aside entire investigations conducted by the organisation.

Lack of Training and Sensitisation Initiatives

Inadequate or absent POSH training and awareness programs are often considered evidence of organisational indifference. Employers are expected not only to issue a POSH policy but to ensure that all employees, particularly the IC and senior management, are made aware of their respective obligations.

Instances where training is not conducted or not appropriately documented have led to adverse judicial remarks. In some cases, courts have noted that the absence of training contributed directly to the mishandling of the complaint, leading to the denial of procedural fairness to the complainant.

Delay or Omission in Annual Disclosures

Under the POSH rules, it is mandatory for the employer to submit an annual report to the District Officer outlining the number of complaints received, disposed of, pending, and action taken. This must be submitted on or before 31 January of the following calendar year.

Failure to submit this report has drawn regulatory action in some states. Several Labour Commissioners have initiated inquiries against employers for non-reporting. In at least two documented instances, repeated non-compliance was escalated to the District Magistrate for further investigation under labour law provisions.

Liability of Responsible Persons

Unlike other workplace laws that impose penalties only on the company, the POSH Act contains express provisions holding “any person who is responsible for the conduct of the business” personally liable for breach of employer obligations under the POSH Act.

This may include:

Managing Directors and Founders
HR Heads and Legal Officers
Business Unit Leaders with authority over the complainant and respondent

Where courts have found that a senior official knew non-compliance (e.g., continued absence of an external member, suppression of a complaint, refusal to act), personal liability has been imposed under both the POSH Act and general principles of vicarious liability.

Legal Precedents and Observations

The following judgments may be noted:

In a 2022 matter before the Delhi High Court, the employer’s failure to constitute the IC in accordance with the statute resulted in a direction to reconstitute the Committee and conduct a fresh inquiry. The court commented that “a nominal or cosmetic compliance cannot satisfy the mandate of the statute.”
In another case before the Bombay High Court (2021), the HR Director was impleaded as a party to the proceedings due to the Committee’s lack of procedural fairness. Although the final order did not impose a monetary penalty, the company was restrained from acting on the IC’s findings until a retrial was conducted.
State Women’s Commissions in Karnataka and Tamil Nadu have, in several matters, levied monetary penalties on firms that failed to maintain records, conduct periodic training, or submit the prescribed annual reports. In some instances, the employer’s non-compliance was made public, leading to client contract terminations.

Regulatory Oversight and Enforcement Trends

While enforcement remained low during the initial years following the enactment of the POSH Act, several state Labour Departments have since issued circulars to District Officers and Labour Inspectors directing increased scrutiny of employer records.

Recent actions have included:

Surprise inspections at workplace premises.
Requests for IC composition documents, meeting minutes, and training records.
Issuance of show-cause notices to HR managers and compliance officers.

Employers that are unable to produce relevant documentation may face penalties under the POSH Act and related labour regulations. In cross-border or M&A transactions, the absence of POSH compliance is now routinely flagged as a diligence concern.

Employers are strongly advised to proactively maintain a documented POSH Compliance Checklist for Indian Businesses, appoint eligible members to the IC, and retain legal counsel to guide policy, training, and compliance filings.

POSH Compliance Checklist for Employers

Below is a practical and legally accurate POSH compliance checklist for Indian businesses, which can be used by in-house HR/legal teams to verify ongoing compliance. Each item has been mapped to the responsible team and suggested frequency of review.

S. No	Compliance Item	Responsible Team	Frequency
1	Internal Committee formation (as per Sec. 4)	HR + Legal	Annual / As needed
2	Appointment letters for IC members (incl. external expert)	Legal	At appointment
3	Formal POSH policy drafted, approved, and circulated	HR + Compliance	Annually
4	Policy translated into regional language (if applicable)	HR	Once / As updated
5	POSH policy embedded in employee handbooks / onboarding	HR	Monthly (new hires)
6	Display of IC details and policy at conspicuous places	Admin / HR	Quarterly
7	Conduct of POSH training and awareness programs for all employees	HR	Annually
8	IC-specific training (on inquiry process, legal obligations, etc.)	Legal / External	Annually
9	Senior management sensitisation session	External Counsel	Every 18 months
10	Maintenance of IC minutes, reports, evidence files	IC Chairperson	Ongoing
11	Filing of annual POSH report to District Officer	HR / Compliance	By 31 January each yr
12	Annual review of policy against latest case laws / amendments	Legal	Annually
13	Review of IC composition (resignations, transfers, etc.)	HR	As needed
14	Employee feedback mechanism on POSH process (optional but recommended)	HR / Compliance	Annually
15	Board-level reporting of POSH compliance metrics	CHRO / CEO Office	Quarterly
16	Vendor/supplier POSH obligations in service agreements	Legal / Procurement	Per contract
17	Compliance audit (internal or third-party)	Legal / External	Every 2 years

Employers are advised to print and maintain this checklist with supporting evidence as part of their HR Compliance Folder, and have it ready for inspection or legal review if the need arises.

Conclusion – POSH compliance checklist for Indian businesses

One of the more common errors observed among businesses, especially startups and small enterprises, is the tendency to treat POSH compliance as a one-time exercise. Forming the Internal Committee and drafting a basic policy are often treated as check-box items, after which there is little follow-through.

However, the Sexual Harassment of Women at Workplace Act is structured not merely as a redressal statute, but as a framework that mandates proactive engagement, training, and documentation. As outlined in the POSH compliance checklist for Indian businesses, obligations such as annual IC training, policy dissemination, recordkeeping, and statutory reporting are not optional; they are continuous duties that attach to the employer.

Token Compliance Increases Organisational Risk

Courts and regulators in India have repeatedly observed that token compliance, i.e., appointing unqualified IC members, not conducting regular POSH training and awareness programs, or failing to investigate complaints properly, often causes greater legal exposure than outright non-compliance. When a complaint arises and the employer’s documents do not reflect consistent compliance, tribunals have not hesitated in setting aside IC decisions and penalising the company.

Further, reputational damage is a very real risk. As more employees become aware of their rights under the POSH Act, failure to meet employer obligations under POSH Act can lead to media scrutiny, employee attrition, or withdrawal of business relationships, particularly where ESG or corporate responsibility criteria are involved.

Annual Reviews Are a Best Practice

Employers are therefore strongly advised to conduct an internal annual review covering the following:

IC constitution and documentation.
Review of complaints handled and timeliness of resolution.
Status of employee training and refreshers.
Filing of the annual report to the District Officer.
Any changes in organisational structure or legal status that affect POSH roles.

In organisations with a legal department or retainer counsel, it is advisable to formally document this review and place a compliance note on record. This ensures that even if a complaint does arise in the future, the company can demonstrate a track record of due diligence and proactive compliance.

Frequently Asked Questions (FAQs)

1. What exactly does the POSH Act require from companies?

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, or simply the POSH Act, is not just about reacting to complaints. It lays down a complete legal framework that companies need to put in place proactively. That includes creating a safe working environment, forming an Internal Committee, rolling out clear redressal procedures, and conducting structured awareness sessions. The Act doesn’t merely suggest these; it’s a legal requirement.

2. We’re a small business. Do we still need to comply?

Yes. The law kicks in the moment your headcount touches 10, regardless of revenue, sector, or stage of growth. This applies whether you’re a private company, LLP, trust, NGO or even a proprietorship with 10 or more people on payroll. Once that threshold is crossed, the employer’s obligations under POSH Act become binding. You will be required to set up a compliant IC, notify of a valid POSH policy, and meet all the annual compliance mandates.

3. What happens if we don’t form an IC?

Failure to constitute the IC as required under law has real legal consequences. The government can impose fines up to ₹50,000, and that’s just the start. Repeat violations can lead to suspension of licences or disqualification from public contracts. More than that, if a complaint is received and your organisation lacks a proper ICC, any inquiry held will likely be struck down as invalid in court. This can significantly damage your legal position in a dispute.

4. Can a male employee file a complaint under POSH?

No. The statute is limited to complaints of sexual harassment against women. That said, many companies extend the same level of protection to male and non-binary employees via internal grievance frameworks. While this is good practice and recommended from an inclusivity standpoint, such protections are not covered by the POSH Act itself and remain outside its statutory scope.

5. What kind of training is actually expected?

There’s no shortcut here. Employers must run proper POSH training and awareness programs on an annual basis. These sessions should be designed to help employees understand what qualifies as sexual harassment, how to raise complaints, and how the IC process works. Training for IC members is separate, it needs to go into procedure, documentation, confidentiality, and the rules of natural justice. In high-risk sectors like hospitality or retail, more frequent sessions are ideal.

6. Is filing the annual POSH report optional?

It is not. Every employer is obligated to file an annual compliance report with the District Officer, disclosing the number of complaints received, resolved, and pending. This must be done by January 31st each year. Non-compliance can attract penalties, and many state labour departments are becoming stricter about follow-ups. Filing the report is a key part of the POSH compliance checklist for Indian businesses and must not be missed.

7. Can we appoint someone from our group company as an external ICC member?

Unfortunately, no. The Internal Committee must have one external member who is completely unaffiliated with your organisation. That person should either be from an NGO working on women’s issues or someone with a legal or social work background. Appointing someone from a sister concern, group entity, or friendly consultant won’t satisfy the law and has been frowned upon in several legal proceedings.

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