POSH Act Compliance for Companies: Key Employer Obligations and Best Practices

POSH ACT COMPLIANCE

POSH Act Compliance for Companies: Key Employer Obligations and Best Practices

To create an equitable work environment, a safe workplace is imperative. Hence, entities are required to create a system where employees know how to report concerns, complaints are handled fairly, and employers can demonstrate that they took reasonable steps to prevent and address sexual harassment.

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (the POSH Act), read with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Rules, 2013 (the POSH Rules), places specific duties on employers. POSH compliance is therefore an ongoing workplace and labour compliance responsibility.

Who Needs to Comply with the POSH Act?

The POSH Act applies to workplaces (defined broadly under Section 2(o) of the Act) across the private and public sectors, including companies, firms, partnerships, trusts, societies, institutions and other organisations. Employers are responsible for taking appropriate steps to prevent sexual harassment and maintain a safe working environment.

Every employer must constitute an Internal Committee (IC) under Section 4; read with Section 6(1), this obligation applies to workplaces with 10 or more workers. Where the IC has not been constituted because the establishment has fewer than 10 workers, or where the complaint is against the employer, the complaint may be made to the Local Committee (LC) constituted by the District Officer under Section 6. Smaller organisations should therefore not assume that they have no POSH obligations.

What Does POSH Compliance Actually Mean?

POSH compliance covers more than drafting a policy. It includes constituting the Internal Committee (Section 4), displaying required information, conducting awareness programmes, training IC members, maintaining confidentiality (Section 16), following the statutory complaint and inquiry process (Sections 9–13), ensuring that the IC’s annual report is submitted to the employer and the District Officer (Section 21), and including the prescribed case information in the employer’s own annual report (Section 22).

The Employer’s Core Responsibilities

Under Section 19 of the POSH Act, an employer must provide a safe working environment at the workplace, including safety from persons coming into contact with the workplace. This includes displaying the penal consequences of sexual harassment and the order constituting the Internal Committee, providing facilities for the Internal Committee, organising awareness and orientation programmes, and assisting in securing the attendance of the respondent and witnesses. Rule 13 of the POSH Rules additionally requires employers to formulate and widely disseminate an internal policy on sexual harassment and to declare the names and contact details of Internal Committee members.

Employers should also ensure that sexual harassment is treated as misconduct under applicable service rules, as contemplated by Section 19 of the Act, and maintain confidentiality throughout the process.

Handling a POSH Complaint

A POSH complaint should not be treated as an ordinary HR grievance. The Act provides a specific statutory mechanism. Under Section 9, an aggrieved woman may file a written complaint with the Internal Committee within three months of the last incident, and the Committee may extend this period by up to three further months if satisfied that the circumstances prevented timely filing.

Under Section 10, conciliation may be attempted at the request of the aggrieved woman before a formal inquiry is initiated. Where an inquiry is required, the Internal Committee must follow the procedure prescribed under Section 11. Confidentiality is critical: Section 16 restricts the publication or disclosure of the complaint, the identities of the parties and witnesses, and information relating to conciliation and inquiry proceedings.

POSH Policy Is Not Enough

A company should maintain a practical POSH compliance checklist covering its policy, IC constitution, training records, awareness sessions, notices, complaint records and annual reporting.

The policy should also fit with the company’s human resource policy manual, employment agreement and workplace conduct framework. Organisations operating from multiple locations should review compliance for each covered workplace.

POSH in Modern Workplaces

Workplace sexual harassment is not limited to a traditional office. Under Section 2(o), the definition of “workplace” is broad and includes any place visited by the employee arising out of or during the course of employment. Companies should therefore consider work travel, client locations, events and other work-related settings while designing POSH compliance procedures.

POSH and Other Employment Laws

POSH compliance operates alongside other employment obligations, including those relating to employment contracts, leave policy, employee benefits and social security. Employers may wish to seek labour law compliance services and advice from a labour law advocate/employment lawyer or POSH consultant when reviewing policies, training and compliance processes.

POSH Compliance Checklist for 2026

  1. Is the Internal Committee properly constituted where required?
  2. Are members trained and aware of their duties?
  3. Is the POSH policy current and accessible?
  4. Are employees receiving regular awareness training?
  5. Are required notices and contact details displayed?
  6. Is there a confidential complaint-handling process?
  7. Are inquiry records maintained securely?
  8. Are applicable annual reports completed?

Non-Compliance Can Have Consequences

Under Section 26 of the POSH Act, an employer who fails to constitute the Internal Committee under Section 4(1), fails to take action under Sections 13, 14 and 22, or otherwise contravenes the Act or Rules may be liable to a fine of up to ₹50,000. A repeat conviction for the same offence may attract twice the punishment and may also lead to cancellation of the employer’s licence or registration required to carry on its business. Under Section 27, offences are non-cognizable and a court may take cognisance only on a complaint by the aggrieved woman or a person authorised by the Internal Committee or Local Committee.

For companies, the practical lesson is simple: POSH compliance should be built into everyday employment practices rather than addressed only when a complaint arises.

FAQs

1. Who shall be the members of the Internal Committee?

Under Section 4(2) of the POSH Act, the Internal Committee must include a Presiding Officer who is a woman employed at a senior level, at least two members from among employees, preferably committed to the cause of women or with experience in social work or legal knowledge, and one member from a non-governmental organisation or association committed to the cause of women or a person familiar with issues relating to sexual harassment. At least half of the members nominated must be women.

2. What are the key responsibilities of an Internal Committee?

The Internal Committee receives and handles complaints, conducts inquiries as prescribed, maintains confidentiality, prepares required reports and makes recommendations under the POSH Act. It must also submit an annual report to the employer and District Officer under Section 21.

3. Can a lawyer be appointed as the external member of the Internal Committee?

Yes, a lawyer may be appointed as the external member provided they satisfy Section 4(2)(c) of the POSH Act, i.e., they are from a non-governmental organisation or association committed to the cause of women, or are a person familiar with the issues relating to sexual harassment. Rule 4 of the POSH Rules describes such a person as one with expertise on these issues, which may include a person familiar with labour, service, civil or criminal law; strictly, Rule 4 is framed for Local Committee nominations under Section 7(1)(c), but it is commonly used as guidance for Internal Committees. A law degree or professional status as a lawyer, by itself, does not automatically establish eligibility. Separately, Rule 7(6) bars the parties from being represented by a legal practitioner before the Committee.

4. What does a POSH consultant do?

A POSH consultant can assist with POSH policy drafting, employee awareness, IC training, compliance reviews and documentation, while statutory decision-making remains with the Internal Committee.

5. What should an employer do after receiving a POSH complaint?

The complaint should be promptly referred to the appropriate Internal Committee and handled according to the prescribed procedure, while maintaining confidentiality and providing the required support.

6. What records should companies maintain for POSH compliance?

Companies should maintain records of the Internal Committee, POSH policy, training, awareness programmes, complaints, inquiries and applicable annual reports, while preserving confidentiality. The Internal Committee’s annual report must contain the prescribed information under Section 21 read with the POSH Rules. Separately, Section 22 requires the employer to include the prescribed information about cases in its annual report or, where no such report is prepared, intimate the District Officer as required by that section.

Concluding Thoughts

POSH compliance is not just about having a policy or Internal Committee in place. Employers should regularly review their POSH policy, training, complaint procedures and reporting requirements to ensure employees have a safe and reliable mechanism for raising concerns. As workplaces evolve with remote work, travel and digital communication, businesses should keep their POSH framework updated, with support from a POSH consultant or labour law advocate where required.

This article is intended for general informational purposes only and does not constitute legal advice. Readers should consult a qualified legal professional for advice on specific compliance requirements. The legal position stated herein is based on the law as on the date of publication and may be subject to subsequent legislative or regulatory changes.