POSH Act Compliance Checklist for Employers (2026): Internal Committee, Policy, Annual Report and Penalties
- The threshold is 10 or more employees at a workplace — including contract staff, interns and trainees — and it applies to every private company, LLP, firm, NGO, hospital and shop, not only large corporates.
- The Internal Committee must have at least four members, a woman presiding officer from senior staff, at least half women, and one external member from an NGO or with legal familiarity; an IC without the external member is invalid and its findings can be set aside.
- Non-compliance costs up to ₹50,000 for a first offence, double for a repeat with possible cancellation of the business licence, and since 2024 the annual report and board's-report disclosure are checked by MCA and in investor diligence.
The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 — the POSH Act — has been in force for over a decade, but a large share of small and mid-sized employers still have no Internal Committee or have one that would not survive scrutiny. That exposure has become visible: the Supreme Court's 2023 directions led to state-level audits, MCA now checks the board's-report disclosure, and investors treat a missing IC as a diligence finding. This checklist sets out what an employer must have in place, in the order a compliance review would examine it. It is general legal information, not legal advice; a specific complaint should be handled with an advocate or a trained external member.
Does it apply to you
- Any workplace with 10 or more employees must constitute an Internal Committee (IC). "Employee" includes regular, temporary, ad hoc and daily-wage workers, contract staff, interns, apprentices, trainees and probationers — not just those on the payroll.
- Workplaces with fewer than 10 employees, and complaints against the employer personally, go to the Local Committee constituted by the District Officer.
- "Workplace" extends to any place visited for work, transport provided by the employer, and remote work settings.
- The Act protects women; many employers extend their policy to all genders as a matter of policy while keeping the statutory IC process for complaints under the Act.
The compliance checklist
| # | Requirement | Legal basis | Evidence a reviewer asks for |
|---|---|---|---|
| 1 | Internal Committee constituted by written order | Section 4 | Constitution order signed by the employer, with names, designations and dates |
| 2 | Presiding Officer: a woman employed at a senior level | Section 4(2)(a) | Her designation; if no senior woman at the workplace, nominated from another unit or group company |
| 3 | At least two members from among employees, preferably committed to women's causes or with legal knowledge | Section 4(2)(b) | Names and brief profiles |
| 4 | One external member from an NGO or association working for women, or a person familiar with sexual-harassment issues | Section 4(2)(c) | Engagement letter, fee record (fees must be paid as prescribed) |
| 5 | At least half of the members are women; tenure not exceeding three years | Section 4(3), 4(4) | Composition record; renewal orders |
| 6 | Written anti-sexual-harassment policy, circulated and displayed | Section 19(b) | Policy document, acknowledgement by employees, notice at conspicuous places |
| 7 | Display of penal consequences and the IC's constitution order at the workplace | Section 19(b) | Photograph of the notice board / intranet page |
| 8 | Regular workshops and awareness programmes for employees; orientation for IC members | Section 19(c) | Training records, attendance, materials |
| 9 | Complaint handling within timelines: complaint within 3 months of incident (extendable), inquiry completed within 90 days, report to employer within 10 days, action within 60 days | Sections 9, 11, 13 | Case register, inquiry files kept confidential |
| 10 | Annual report by the IC to the employer and the District Officer | Section 21, Rule 14 | Filed copy for each calendar year — number of complaints, disposed, pending beyond 90 days, workshops held, action taken |
| 11 | Disclosure in the Board's Report (companies) | Section 134 Companies Act read with Rule 8(5)(x) of the Accounts Rules, as amended | Statement that an IC is constituted, plus number of complaints received, disposed and pending for more than 90 days |
| 12 | Confidentiality of complaints, identity and proceedings | Section 16 | Access controls on IC records; penalty of ₹5,000 on individuals who breach |
Running an inquiry properly
- Receive the written complaint (the IC may assist a complainant in writing it); the complainant may request conciliation before inquiry, but no monetary settlement is permitted as the basis of conciliation.
- Send a copy to the respondent within 7 working days; the respondent replies within 10 working days with documents and witnesses.
- Conduct the inquiry following principles of natural justice: both sides heard, cross-examination through the committee, minutes kept, no lawyers appearing for either party.
- Interim measures on request: transfer of complainant or respondent, leave of up to three months, restraining the respondent from supervising the complainant.
- Complete within 90 days; issue a reasoned report to the employer within 10 days; employer acts within 60 days — action under service rules, deduction from salary for compensation, or, where allegations are not proved, closure.
- Either party may appeal to the appellate authority under the applicable service rules or to the court within 90 days.
Penalties and consequences
- Failure to constitute an IC, act on the IC's recommendations, or file the annual report: fine up to ₹50,000; a repeat offence doubles the fine and can lead to cancellation of the licence or registration to conduct business.
- Companies: a false or missing POSH statement in the Board's Report is a Companies Act default, and MCA has issued show-cause notices on the point.
- Practical consequences: findings of an improperly constituted IC are quashed by courts; investors and customers increasingly require a POSH compliance certificate; a mishandled complaint becomes a reputational and litigation event.
Setting it up in a week — small employer version
- Day 1: count employees across the workplace including contract staff; identify the senior woman for Presiding Officer.
- Day 2: engage an external member (NGO representative or a trained professional) with a written letter and agreed fee.
- Day 3: issue the constitution order; adopt the policy — the offer-letter and appointment-letter pack in the Legal Tools suite references the policy, and the policy itself should be a standalone document approved by the board or partners.
- Day 4: display the order and policy; circulate to all staff with acknowledgement.
- Day 5: hold a one-hour awareness session and record attendance; schedule IC orientation.
- Ongoing: maintain the complaint register, file the annual report each January for the previous calendar year, and include the disclosure in the Board's Report.
Common mistakes
- No external member, or an "external" member who is the company's own lawyer or auditor.
- Counting only payroll employees and concluding the threshold is not met.
- A policy downloaded and never circulated, with no acknowledgement trail.
- Never filing the annual report because no complaint was received — a nil report is still required.
- HR investigating instead of the IC; only the IC has jurisdiction under the Act.
- Letting the 90-day inquiry clock lapse, or allowing lawyers to appear and turning the inquiry into litigation.
Disclosure: this checklist is general information on the POSH Act, 2013 and related rules and is not legal advice. KyaTax is a technology and compliance platform, not a law firm; the handling of any complaint, the drafting of your policy for your specific workplace, and representation before any authority should be done by an advocate or a qualified external member briefed on your facts.
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Open Legal Tools →Frequently asked questions
Which employers must have a POSH Internal Committee?
Every workplace with 10 or more employees, counting contract workers, interns, trainees and daily-wage staff as well as payroll employees. It applies to private companies, LLPs, partnerships, proprietorships, NGOs, hospitals, schools and shops alike. Smaller workplaces route complaints to the District Officer's Local Committee.
Who can be the external member of the Internal Committee?
A person from a non-governmental organisation or association committed to the cause of women, or a person familiar with issues relating to sexual harassment — in practice a trained POSH professional, a social worker or an advocate with relevant experience who is not an employee of the organisation. The external member must be paid the prescribed fees and attend the inquiry proceedings.
Is a POSH annual report required if there were no complaints?
Yes. The Internal Committee must submit an annual report for each calendar year to the employer and the District Officer, stating the number of complaints received, disposed of and pending, and the workshops conducted — a nil return where there were no complaints. Companies must also carry the disclosure in the Board's Report.
What is the penalty for not complying with the POSH Act?
A fine of up to ₹50,000 for failing to constitute an IC, act on its recommendations or file the annual report. A second offence attracts double the penalty and can lead to cancellation of the licence or registration required to carry on the business. Companies also face Companies Act consequences for a missing Board's Report disclosure.
General information for FY 2026-27, not professional advice for your specific case. Rules change — verify against the latest notification or ask a KyaTax expert.
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