In short
POSH compliance means following the Sexual Harassment of Women at Workplace Act, 2013. Every employer with 10 or more employees at a workplace must set up an Internal Committee there, have a written POSH policy, run awareness programmes, complete each inquiry within 90 days, keep complaints confidential and file an annual report. Non-compliance can be fined up to ₹50,000, doubled for repeat offences.
What is the POSH Act?
The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, commonly called the POSH Act, is India's law on sexual harassment at work. It came into force on 9 December 2013 and builds on the Supreme Court's 1997 Vishaka guidelines.
It places three duties on every employer: prevent sexual harassment, prohibit it through a clear policy, and redress complaints through a fair, time-bound inquiry. The Act is read with the Sexual Harassment of Women at Workplace Rules, 2013, which set out the procedure.
What counts as sexual harassment?
Section 2(n) defines sexual harassment as any one or more of these unwelcome acts or behaviour, whether directly or by implication:
- physical contact and advances
- a demand or request for sexual favours
- sexually coloured remarks
- showing pornography
- any other unwelcome physical, verbal or non-verbal conduct of a sexual nature
Section 3(2) adds circumstances that can amount to harassment, such as an implied promise of preferential treatment, a threat about someone's job, interfering with their work or creating a hostile or intimidating work environment.
Who does the POSH Act apply to?
The Act applies to every workplace in India: private companies, government offices, NGOs, hospitals, schools, colleges, shops and factories, whether organised or unorganised.
It protects any woman at the workplace, of any age, whether or not she is employed there. "Employee" is defined broadly and includes permanent, temporary, ad hoc and daily-wage staff, contract workers, interns, trainees and apprentices. Visitors and clients are protected too.
The "workplace" is also wider than your office. It includes any place an employee visits during the course of employment, including transport provided by the employer, client sites and offsite events.
For schools, colleges and universities: the UGC (Prevention, Prohibition and Redressal of Sexual Harassment of Women Employees and Students in Higher Educational Institutions) Regulations, 2015 extend similar protection to students and require an Internal Complaints Committee in every higher educational institution.
Who must set up an Internal Committee?
Every employer with 10 or more employees must constitute an Internal Committee (IC) by written order (Section 4). If you have offices or administrative units in different places, you need an Internal Committee at each one that has 10 or more employees.
Workplaces with fewer than 10 employees, and complaints against the employer themselves, go to the Local Committee set up by the District Officer.
Internal Committee composition
| Role | Who can be appointed |
|---|---|
| Presiding Officer | A woman employed at a senior level at the workplace |
| At least 2 members | Employees committed to women's causes, or with experience in social work or legal knowledge |
| 1 external member | From an NGO or association committed to women's causes, or a person familiar with sexual harassment issues |
At least half the members must be women, and members can hold office for up to three years. The external member is paid fees or allowances by the employer. If a member breaches confidentiality or is found guilty of misconduct, they must be removed and the vacancy filled.
A common audit failure is an Internal Committee that exists on paper only: an external member who resigned and was never replaced, a Presiding Officer who left the company, or a committee at head office but none at the branches.
How does the POSH complaint process work?
The Act sets a strict timeline from the moment a complaint is received:
| Step | Time limit | Section |
|---|---|---|
| Complaint filed in writing | Within 3 months of the incident (or the last incident in a series); the IC can extend by a further 3 months for recorded reasons | 9 |
| Copy sent to respondent | Within 7 working days of receiving the complaint | Rule 7 |
| Respondent replies | Within 10 working days of receiving the copy | Rule 7 |
| Conciliation (optional) | Only if the complainant asks for it; no monetary settlement | 10 |
| Inquiry completed | Within 90 days | 11 |
| Inquiry report to employer | Within 10 days of completing the inquiry | 13 |
| Employer acts on recommendations | Within 60 days of receiving the report | 13 |
| Appeal against the recommendations | Within 90 days | 18 |
If the complainant cannot file the complaint herself because of physical or mental incapacity or death, a relative, friend, co-worker or another person with her consent can file it on her behalf.
Interim relief during the inquiry
While the inquiry is pending, the complainant can ask the IC to recommend interim relief (Section 12), such as transferring either party, granting her up to three months' leave, or stopping the respondent from assessing her work.
Confidentiality
Section 16 prohibits publishing or disclosing the contents of the complaint, the identities of the complainant, respondent and witnesses, the inquiry proceedings and the recommendations. Anyone who breaches this can be penalised under the employer's service rules.
POSH compliance checklist for employers
Section 19 lists the employer's duties. In practice, a complete POSH compliance programme includes:
- A written POSH policy that defines harassment, explains how to complain and states the consequences
- An Internal Committee at every office with 10 or more employees, constituted by written order
- Display at the workplace of the penal consequences of sexual harassment and the order constituting the IC
- Awareness programmes for employees and orientation and training for Internal Committee members
- A safe way to complain, including for contract staff, interns and visitors
- Support for the IC: facilities, access to witnesses and documents, and payment for the external member
- Acting on IC recommendations within 60 days, treating harassment as misconduct under service rules
- Keeping records of complaints, proceedings and outcomes securely and confidentially
- Filing the annual report with the District Officer and disclosing POSH data in your own annual report
What goes in the POSH annual report?
Under Section 21, the Internal Committee must prepare an annual report each calendar year and submit it to the employer and the District Officer. Under Rule 14, it must include:
- the number of complaints received during the year
- the number of complaints disposed of
- the number of cases pending for more than 90 days
- the number of workshops or awareness programmes held
- the nature of action taken by the employer or District Officer
Under Section 22, the employer must also include the number of cases filed and their disposal in its own annual report. Companies must disclose POSH complaint data in the Board's report under the Companies Act, and the 2025 amendments to the Companies (Accounts) Rules made this disclosure more detailed.
Several states also run online portals for filing the annual report, so check the requirement in each state where you have an office.
What are the penalties for POSH non-compliance?
| Default | Consequence |
|---|---|
| Not constituting an Internal Committee, not acting on recommendations or breaching any other provision | Fine up to ₹50,000 (Section 26) |
| Repeating the same offence | Up to twice the penalty, plus possible cancellation or non-renewal of your business licence or registration |
| Breach of confidentiality by any person | Penalty under service rules, as set by the Rules |
| Missing disclosures in the Board's report | Penalties under the Companies Act, separately from the POSH Act |
The bigger risks are often not the fines: an inquiry that misses its deadline or ignores natural justice can be overturned in court, and a mishandled complaint can become a reputational crisis.
How TrustToSpeak handles POSH compliance
Most POSH failures come from process, not intent: complaints sitting in someone's inbox, deadlines tracked in a spreadsheet, or an IC at head office but none at the branches. TrustToSpeak turns the Act's obligations into a guided workflow.
POSH compliance, built in
- A QR code for every branch. Complaints go straight to that branch's Internal Committee, so every office with 10+ employees is covered.
- The statutory timeline, tracked automatically, with reminders before every deadline.
- Conflict-of-interest checks before members are assigned, and time-limited access for the external member.
- Strict confidentiality: each case is visible only to its assigned committee, personal details are encrypted, and every view is logged.
- Status updates and private chat for the complainant, protected by a secret word.
- Annual report data collected as you work, by Internal Committee.
Frequently asked questions
Is POSH compliance mandatory for small companies?
Yes. The POSH Act applies to every employer. If any office has 10 or more employees, you must set up an Internal Committee there. Smaller workplaces still need a policy and awareness, and their employees can complain to the Local Committee set up by the District Officer.
Who can be the external member of an Internal Committee?
The external member must come from an NGO or association committed to women's causes, or be a person familiar with sexual harassment issues. They cannot be an employee, and the employer pays their fees or allowances.
Can a man file a complaint under the POSH Act?
No. The POSH Act protects women. Many organisations make their own policy gender-neutral so that men and people of all genders can also raise harassment complaints, but those are handled under the company's policy rather than the Act.
Can a POSH complaint be anonymous?
A formal POSH inquiry needs a written complaint from the aggrieved woman or someone authorised to file on her behalf. An anonymous report can still alert the organisation to a problem and lead to preventive action, so it is good practice to offer a confidential channel.
How long does a POSH inquiry take?
The Internal Committee must complete the inquiry within 90 days and give its report to the employer within 10 days after that. The employer must act on the recommendations within 60 days.
What is the time limit to file a POSH complaint?
Within three months of the incident, or of the last incident if there was a series. The Internal Committee can extend this by another three months if it is satisfied that circumstances prevented an earlier complaint, recording its reasons in writing.
Do we need a separate Internal Committee for each branch?
Yes, if the branch has 10 or more employees. The Act requires an Internal Committee at each office or administrative unit located at a different place.
What is the penalty for not having an Internal Committee?
A fine of up to ₹50,000 under Section 26. Repeat offences can attract twice the penalty and cancellation or non-renewal of your business licence or registration.
This guide explains the law in general terms and is not legal advice. Laws, rules and state notifications change; check the current text and take advice from a qualified professional for your situation.