Does the POSH Act Apply to Your Company?

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 applies to every employer in India with 10 or more employees — regardless of whether the organisation is a private company, NGO, educational institution, restaurant, hospital, or government body. If your Pune organisation has 10 or more employees, POSH compliance is mandatory.

The 4 Mandatory POSH Compliance Requirements

1. Internal Complaints Committee (ICC)

Every employer must constitute an ICC at each office or administrative unit with the following composition:

  • Presiding Officer: a senior woman employee
  • At least 2 members from employees (preferably committed to women’s causes)
  • 1 external member from an NGO or association committed to women’s causes
  • At least 50% of ICC members must be women
  • ICC members serve for a maximum of 3 years

2. Written Anti-Sexual Harassment Policy

The employer must draft and display a clear POSH policy that defines sexual harassment per the Act’s definition, states it is a punishable offence, lists prohibited conduct, explains the complaint process, states consequences for perpetrators, and protects complainants against retaliation.

3. Annual Awareness Training

All employees — including managers and ICC members — must undergo POSH awareness training at least once a year. ICC members require additional training on how to conduct inquiries fairly and in compliance with natural justice principles.

4. Annual Report to District Officer

Every employer must submit an annual report to the District Officer (typically the District Collector) by 31st January each year, containing the number of complaints received, disposed of, and pending.

Penalties for Non-Compliance

  • Fine of up to ₹50,000 for first offence
  • Cancellation of business licences or registration for repeat offences
  • Penalty doubles for subsequent violations
  • Personal liability for employers found complicit in harassment

What If a Complaint Is Filed Against Your Company?

When the ICC receives a complaint, it must complete its inquiry within 90 days, following natural justice principles. If the ICC finds the complaint proved, it recommends action against the respondent and compensation to the complainant. Both parties can appeal to the District Officer and thereafter to courts.

Frequently Asked Questions

Does POSH apply to my startup with fewer than 10 employees?

If your organisation has fewer than 10 employees, you are not required to form an ICC. However, your employees can still complain to the Local Complaints Committee (LCC) at the District level. You are still obligated to maintain a safe workplace environment. As your headcount grows to 10+, ICC formation becomes mandatory immediately.

What if no woman employee is senior enough to serve as Presiding Officer?

In such cases, you may nominate a woman from another organisation to serve as Presiding Officer. The Act permits this flexibility for organisations where no senior woman employee is available internally. The external Presiding Officer must be a woman who is knowledgeable about issues relating to sexual harassment.

How do I find an external NGO member for my ICC in Pune?

Several NGOs in Pune work on women’s rights and can provide external ICC members. The District Collector’s office and the Maharashtra State Commission for Women can provide a list of empanelled NGOs. The external member must have relevant expertise and cannot be an employee of your organisation.

Advocate Akash Chikate provides POSH compliance advisory and representation in POSH inquiries and appeals for Pune companies. Contact us to audit your current compliance status.