The Prevention of Sexual Harassment of Women at Workplace Act, 2013, imposes mandatory compliance obligations on every employer in India with at least ten or more employees, regardless of industry, size, or ownership structure. Nevertheless, this doesn’t restrict the workplaces that have fewer than 10 employees. Non-compliance attracts penalties, regulatory action, and significant reputational risk. ATB Legal advises Indian companies and foreign-invested entities on end-to-end POSH compliance — from Internal Complaints Committee constitution and policy drafting through to complaint handling, inquiries, and annual reporting. Our team is also equipped to represent the employer/employee before the redressal committees and/or any higher courts in case of any litigation requirements.
POSH compliance is not optional, and the consequences of non-compliance extend beyond penalties; a single mishandled complaint can expose an employer to regulatory action, civil liability, and reputational damage that a properly constituted ICC and a well-drafted policy would have prevented.
POSH Compliance: What the Act Requires
The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 — the POSH Act — requires every employer with ten or more employees to constitute an Internal Complaints Committee, adopt a written anti-sexual harassment policy, conduct awareness programmes, and submit an annual report to the District Officer. Failure to constitute an ICC attracts a fine of up to Rs 50,000 for a first offence, with the possibility of cancellation of business licences or registration, in case of any grave non-compliances, subject to the decision of the registration authority. Beyond statutory penalties, a poorly managed complaint exposes the employer to civil liability and regulatory scrutiny that significantly exceeds the cost of preventive compliance.
ICC Constitution and Governance
Every employer covered by the POSH Act must constitute an Internal Complaints Committee (ICC) at each office or administrative unit. The ICC must have at least four members: a Presiding Officer (a senior-level woman employee), at least two other employees, and a mandatory external member from an NGO or body committed to women’s issues, or a person with legal knowledge or social work experience. The external member requirement is frequently overlooked — an ICC without a qualifying external member is non-compliant regardless of the seniority of its internal members. We advise on ICC constitution, member qualification assessment, appointment documentation, and ongoing governance obligations.
POSH Policy Drafting
A compliant POSH policy must define sexual harassment with reference to the Act’s definition, set out the ICC’s composition and mandate, describe the complaint filing process and timelines, explain interim relief measures available during inquiry,
state the inquiry procedure and natural justice requirements, specify consequences of substantiated complaints, and include provisions covering false or malicious complaints. Our team drafts customised POSH policies calibrated to the organisation’s size, structure, workforce composition, and industry — not generic templates that leave critical definitional and procedural gaps.
Complaint Handling and ICC Inquiry Support
When a complaint is received, the ICC must follow a defined statutory process under the POSH Act. The timeline is strict: complaint filed within three months of the incident, inquiry completed within ninety days, and the report and recommendations submitted to the employer within ten days of completion. The inquiry must observe natural justice — both parties must have full opportunity to present their case, call witnesses, and respond to evidence. The employer must act on the ICC’s recommendations within sixty days. Our expert lawyers support the employers through the complete inquiry process — advising the ICC on procedure, preparing inquiry documentation, and representing the employer where proceedings are subsequently challenged.
Training, Awareness, and Annual Reporting
Under Section 19 of the POSH Act, employers must organise workshops and awareness programmes at regular intervals, display the penal consequences of sexual harassment at conspicuous places, and provide necessary facilities to the ICC. Under Section 21, an annual report of the number of cases filed and their disposal must be submitted to the District Officer — an obligation many employers are unaware of. ATB Legal delivers structured POSH training for all employees and separate ICC-specific capacity-building sessions covering inquiry procedures, natural justice requirements, and documentation standards.
Frequently Asked Questions- POSH Compliance
Which employers are required to comply with the POSH Act?
Every employer in India must comply with the POSH Act, and to constitute an Internal Complaints Committee, the company must have at least ten or more employees and implement a POSH-compliant policy. The Act applies to all workplaces — offices, factories, educational institutions, and remote arrangements. Foreign companies with Indian operations, including subsidiaries and branches, are fully subject to the Act’s requirements.
What is an Internal Complaints Committee, and who must be on it?
The ICC is the employer-constituted body responsible for receiving, inquiring into, and recommending action on sexual harassment complaints. It must have at least four members: a Presiding Officer (a senior woman employee), at least two other employees, and a mandatory external member from an NGO or body committed to women’s issues, or a person with legal knowledge or experience in social work. An ICC without a qualifying external member is non-compliant.
What are the penalties for non-compliance with the POSH Act?
Failure to constitute an ICC attracts a fine of up to Rs 50,000 for a first offence. Repeat offences attract double the penalty, and the court may order cancellation of business licences or registration. Directors and officers may face personal liability. Reputational consequences for multinational and listed companies typically far exceed the statutory penalties.
Our Team of
Lawyers and Experts
Representative Experience
Multinational Technology Company — ICC Constitution and Policy Implementation
Advised the India subsidiary of a multinational technology company on constituting its Internal Complaints Committee across three Indian office locations. The mandate covered member qualification, external member appointment, tailored POSH policy drafting covering office, client site, and remote work environments, and a company-wide employee awareness programme across all three locations. The client achieved full POSH Act compliance before a group governance audit.
ICC Inquiry Support — Manufacturing Employer
Advised the ICC of an Indian manufacturing company through a formal sexual harassment inquiry against a senior manager. The mandate covered inquiry procedure advisory, documentation preparation, natural justice compliance review, and report drafting. The inquiry was completed within the statutory timeline and the ICC’s recommendations were implemented without challenge.
GCC-Based Group — India POSH Compliance Review
Conducted a POSH compliance audit for the India operations of a GCC-based business group following a group governance review. The audit assessed ICC constitution validity, policy adequacy, training records, and annual reporting compliance across four Indian entities. ATB Legal prepared a remediation roadmap, updated policies, reconstituted two non-compliant ICCs, and delivered training within the group compliance timeline.