R M   L E G A L

POSH Compliance

RM Legal advises employers on compliance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, commonly called the POSH Act. We help organisations set up compliant structures, and advise Internal Committees on conducting inquiries fairly and within the statutory timelines.

What We Do

Our work includes:

  • POSH policies and their communication to employees
  • Constitution and reconstitution of Internal Committees
  • External member appointments
  • Advice to Internal Committees on conducting inquiries, recording evidence and preparing reports
  • Annual reports and statutory records
  • Awareness sessions for employees and orientation for committee members
  • Advice on challenges to inquiry outcomes

Who Must Comply

Every employer with 10 or more employees at a workplace must constitute an Internal Committee. "Employee" is defined broadly and includes permanent, temporary, contract and ad hoc workers, trainees and interns, whether or not they are paid. Workplaces with fewer than 10 employees are covered by the Local Committee constituted by the District Officer.

The Internal Committee

The Internal Committee must be headed by a woman employed at a senior level. It must include at least two employees committed to the cause of women or with legal knowledge or experience in social work, 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 the members must be women, and members hold office for up to three years.

Complaints and Inquiries

  • A complaint must ordinarily be made within three months of the incident, which the Committee can extend by a further three months for valid reasons.
  • The Committee can attempt conciliation at the complainant's request, but monetary settlement cannot be the basis of conciliation.
  • The inquiry must be completed within 90 days, and the report given to the employer within 10 days of completion.
  • The employer must act on the Committee's recommendations within 60 days.
  • The identity of the parties and the proceedings are confidential.

Employer Obligations

Employers must frame and display a policy, display the consequences of sexual harassment and the composition of the Committee, hold awareness programmes, assist the Committee, and include the number of cases filed and disposed of in their annual report. The Committee must also prepare an annual report for the employer and the District Officer.

Penalties

Failure to constitute an Internal Committee or to comply with the Act is punishable with a fine of up to ₹50,000. Repeated violations can lead to a higher penalty and to cancellation of the employer's business licence or registration. The Supreme Court has also directed authorities to verify employer compliance across districts, so non-compliance is now more likely to be detected.

Frequently Asked Questions

Does the POSH Act apply to a small business?
If a workplace has 10 or more employees, including temporary, contract staff and interns, it must constitute an Internal Committee. Smaller workplaces are covered by the Local Committee.

Can the Internal Committee consist only of company employees?
No. It must include an external member from an NGO or association committed to the cause of women, or a person familiar with issues relating to sexual harassment.

How long does a POSH inquiry take?
The inquiry must be completed within 90 days. The report must be given to the employer within 10 days after that, and the employer must act on it within 60 days.

Does the Act apply to complaints by men?
The POSH Act protects women. Many employers adopt gender-neutral policies as a matter of internal policy, which are applied alongside the Act.

What is the penalty for not having an Internal Committee?
A fine of up to ₹50,000, with higher penalties and possible cancellation of business licences for repeat violations.

Do we need to file an annual report?
Yes. The Internal Committee prepares an annual report for the employer and the District Officer, and the employer must include details of cases in its own annual report.

Reviewed by Richa M. Goyal, Managing Partner. Last reviewed: October 2026.

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