POSH Compliance for Employers
Every employer with 10 or more employees must set up an Internal Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, adopt a policy, train staff and file an annual report. We set it up and run the yearly filings for you.
What it is
POSH compliance is the set of duties an employer carries under the POSH Act, 2013 to prevent sexual harassment of women at work and to deal with complaints fairly. There is no certificate to collect. What the law wants is a working committee, a written policy, regular awareness sessions, notices on display and a yearly report.
Section 4 requires every employer to constitute an Internal Committee by a written order. Section 19 lists the employer’s duties, from providing a safe workplace to organising workshops. Section 21 asks the committee to send an annual report to the employer and the District Officer. Workplaces with fewer than 10 workers are covered by the Local Committee that the District Officer sets up under Section 6.
Who it applies to
Any employer with 10 or more employees
Companies, LLPs, firms, trusts, societies, schools, hospitals and shops. Headcount includes regular, temporary and contract staff, trainees and interns.
Each office or branch
Running a head office in Faridabad and a sales branch in Gurugram? The Act expects a committee at each unit. One at head office does not cover a branch with its own staff.
Smaller workplaces
Below 10 employees, complaints go to the district’s Local Committee. You still owe a safe workplace and should still display how to complain.
Why it matters
Fines under Section 26
Section 26 allows a fine of up to ₹50,000 for failing to constitute a committee or follow the Act. A repeat offence can mean double the fine and loss of a business licence or registration.
Board reports now ask
Since 14 July 2025, a company’s board report must state complaints received, disposed of and pending beyond 90 days. Investors and lenders read that line.
Complaints get handled properly
A trained committee resolves a complaint within the statutory time limits, and the outcome is harder to attack on procedure.
Documents required
About the organisation
- Certificate of incorporation or registration
- List of offices and units with headcount at each
- Existing HR policies and code of conduct
For the Internal Committee
- Names and designations of the proposed members
- Consent of each member
- Profile of the external member
- Board or partner approval, where your rules need it
For ongoing compliance
- Record of workshops and awareness sessions
- Complaint register (kept confidential)
- Previous annual reports, if any
- District Officer’s contact for your district
How it works
Count heads at every location
We list every office, site and unit with its headcount and decide where an Internal Committee is needed.
Draft the policy and committee order
We write a POSH policy in plain language and the written order constituting the committee under Section 4, with names, roles and a three-year term. Clauses in your employment agreements and code of conduct are aligned so harassment is treated as misconduct.
Appoint an outside member
The law requires one member from an NGO or association committed to women’s causes, or a person familiar with sexual-harassment issues. We help you identify and engage a suitable person.
Put up notices and run sessions
We prepare the notices on penal consequences and committee contacts, and arrange awareness sessions for staff and orientation for members. Attendance records go into your file.
Send the annual report each January
Each year we prepare the committee’s annual report for the District Officer and the disclosure lines that go into your annual ROC filing.
Internal Committee at a glance
| Role | Who it must be | Rule |
|---|---|---|
| Presiding Officer | A woman employed at a senior level | Section 4(2)(a) |
| Employee members | At least two employees, preferably committed to women’s causes or with social work or legal knowledge | Section 4(2)(b) |
| External member | One person from an NGO or association, or familiar with sexual-harassment issues | Section 4(2)(c) |
| Gender balance | At least half the members must be women | Section 4(2) |
| Term | Not more than three years from nomination | Section 4(3) |
A complaint against the employer itself goes to the Local Committee, not the Internal Committee. Here is the catch. Say a Faridabad garment exporter set up its committee in 2023, and the Presiding Officer resigned last year. On paper, the committee still exists. In practice it cannot hold a valid inquiry until a new order names her replacement.
Timelines
Filing a complaint
Within three months of the incident, or of the last incident in a series. The committee can extend this by another three months for recorded reasons (Section 9).
Inquiry
Completed within 90 days (Section 11(4)). The report reaches the employer within 10 days after that (Section 13(1)).
Employer’s action
Within 60 days of receiving the committee’s report (Section 13(4)). An appeal against the recommendations lies within 90 days (Section 18).
Annual report
Prepared by the committee for each calendar year and sent to the employer and the District Officer. Many districts expect it by 31 January; check your District Officer’s date.
Committee term
Up to three years. Diarise the end date. A lapsed order is easy to miss and awkward to explain.
What happens if you don’t comply
Fine up to ₹50,000
Section 26 applies when an employer fails to constitute the Internal Committee, fails to act on its recommendations or breaks any other provision of the Act.
Higher penalty on repeat
A second conviction can attract twice the punishment, and the authority can cancel or refuse to renew the licence or registration needed to run the business.
Weak position in disputes
Without a valid committee, any inquiry is open to challenge. In 2023 the Supreme Court, in Aureliano Fernandes v. State of Goa, noted serious gaps in how the Act is implemented and directed that committees be constituted.
Frequently asked questions
Is POSH compliance mandatory for a company with 10 employees?
Yes, once you have 10 or more employees, Section 4 of the POSH Act requires an Internal Committee constituted by a written order. The count includes temporary and contract staff, trainees and interns, not just permanent employees. You also need a policy, displayed notices and awareness sessions. Below 10, complaints go to the district’s Local Committee. We handle the drafting and the committee order.
Does the POSH Act apply only to women employees?
Yes, the Act protects women, and a complaint under it is filed by an aggrieved woman. She need not be your employee: a visitor, client or trainee harassed at your workplace can also complain. Many employers choose a gender-neutral policy for all staff under their own service rules, which is allowed alongside the Act. We draft the policy so that the statutory process and any wider company rules sit together without confusion.
Who can be the external member of the Internal Committee?
The external member must come from a non-governmental organisation or association committed to women’s causes, or be a person familiar with issues relating to sexual harassment, under Section 4(2)(c). This member comes from outside your organisation, which is the whole point of the role. We help you find a suitable person and record the appointment in the committee order.
How long does the committee have to complete an inquiry?
The inquiry must be completed within 90 days under Section 11(4). The committee then has 10 days to give its report to the employer, and the employer must act on it within 60 days. During the inquiry the committee can recommend interim relief, such as transferring either party or granting the complainant up to three months’ leave. We give the committee a dated calendar on day one so no step runs late.
What goes into the POSH annual report?
The annual report covers the number of complaints received during the year, the number disposed of, cases pending for more than 90 days, workshops and awareness programmes held, and the action taken. The committee sends it to the employer and the District Officer under Section 21. There is no national portal date, but many districts expect the report by 31 January, so check your District Officer’s date. We prepare it from your records and keep the submission proof.
Can a complaint be settled without a full inquiry?
Yes, but only if the complainant asks for it. Under Section 10, the committee can attempt conciliation before starting the inquiry, and the settlement is recorded and shared with both sides. The law is firm on one point: no monetary settlement can be the basis of conciliation. If the terms are not honoured, the complainant can go back to the committee and it will proceed with the inquiry.
What must a company disclose in its board report?
Since 14 July 2025, the Companies (Accounts) Second Amendment Rules, 2025 require the board report to state three numbers for the year: sexual-harassment complaints received, disposed of, and pending for more than 90 days. Section 22 of the POSH Act also asks employers to include cases and their disposal in their annual report. We draft these lines along with your annual filing, so the figures match the committee’s records.
Is the identity of the complainant kept confidential?
Yes, Section 16 bars publishing or disclosing the contents of the complaint, the identities and addresses of the complainant, respondent and witnesses, and the inquiry proceedings to the public or media. Only information about the justice secured may be shared, without names. Breach of confidentiality is itself punishable under the Act and Rules. We set up a sealed complaint register and limit access to committee members only.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
There is no government fee to constitute an Internal Committee or to file the annual report. Any fee agreed with the external member is paid by you directly.
Ready to begin?
Tell us your headcount and office locations, and we will have your Internal Committee order and policy ready to sign.