What is POSH Act compliance for employers?
What POSH Act compliance requires: the Internal Committee for a workplace with 10 or more employees under section 4, the Local Committee under section 6, the 3-month complaint window under section 9, the 90-day inquiry under section 11, the section 21 annual report, and the Rs 50,000 penalty under section 26.
In this guide
POSH Act compliance means an employer meeting the duties in the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Every workplace with 10 or more employees constitutes an Internal Committee under section 4. A written complaint runs within 3 months under section 9, the inquiry finishes within 90 days under section 11, and non-compliance costs up to Rs 50,000 under section 26.
What is POSH Act compliance?
POSH Act compliance is an employer meeting the duties in the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. The Act protects an aggrieved woman at the workplace and sets up a complaint and inquiry machinery the employer must build, run and report on. It is Act No. 14 of 2013 and is administered by the Ministry of Women and Child Development.
The load has four visible parts: a committee to receive complaints, a written policy and prevention duties, a complaint-to-inquiry timeline with fixed limits, and yearly reporting. A company also carries a separate director's-report disclosure under the Companies (Accounts) Rules, 2014.
Who must form an Internal Committee?
Every employer of a workplace with 10 or more employees must constitute an Internal Committee. That threshold is set by section 4 of the POSH Act, 2013, and the committee is constituted by a written order. A workplace with offices at more than one location constitutes an Internal Committee at each administrative unit or office.
Who sits on the Internal Committee?
Section 4 fixes the composition. The Presiding Officer is a woman employed at a senior level at the workplace. There are at least two members from among employees committed to the cause of women or with experience in social work or legal knowledge, 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 one half of the total members nominated must be women, and members hold office for up to 3 years.
When does a Local Committee apply?
A Local Committee handles complaints where an Internal Committee does not exist or cannot hear the matter. Under section 6 of the POSH Act, 2013, the District Officer constitutes a Local Committee for every district to receive complaints from establishments with fewer than 10 workers, and where the complaint is against the employer himself.
The District Officer is notified under section 5. So a small firm is not outside the Act. Its route is the Local Committee rather than an in-house one.
What POSH policy must an employer keep?
An employer must have a written policy against sexual harassment and actively prevent it. Section 19 of the POSH Act, 2013 lists the employer's duties: provide a safe working environment, display the penal consequences and the Internal Committee order at a conspicuous place, organise workshops and awareness programmes, and assist the Committee.
The policy is the practical form of those duties. It names the Committee members, states how to complain, states the timelines below, and confirms confidentiality under section 16, which bars publication of the complainant's identity and the inquiry contents.
What is the POSH complaint timeline?
A written complaint runs within 3 months and the inquiry finishes within 90 days. Section 9 of the POSH Act, 2013 gives the aggrieved woman 3 months from the incident, extendable by a further 3 months for reasons recorded in writing. Section 11 then caps the inquiry at 90 days.
| Stage | Limit | Provision |
|---|---|---|
| Written complaint after the incident | Within 3 months | Section 9 |
| Extension of the complaint window | Up to 3 more months | Section 9 proviso |
| Complete the inquiry | Within 90 days | Section 11 |
| Send the inquiry report | Within 10 days of completion | Section 13 |
| Employer acts on recommendations | Within 60 days | Section 13 |
Conciliation under section 10 is optional and only at the woman's request, and no monetary settlement can be the basis of it. If the Committee finds the allegation proved, it recommends action under the service rules and compensation under section 15.
What POSH annual report is filed?
The Internal Committee or Local Committee files an annual report with the District Officer each calendar year. That duty is section 21 of the POSH Act, 2013. The report goes to the employer and the District Officer, and the District Officer forwards a brief report to the State Government.
The report states the number of complaints received and disposed during the year, cases pending beyond 90 days, workshops held, and the nature of action taken. It is a statutory filing, not an internal note, so a missed section 21 report is itself a contravention under section 26.
What does the director's report disclose?
A company's director's report must state that the company has complied with the constitution of an Internal Committee under the POSH Act. That disclosure is rule 8(5)(x) of the Companies (Accounts) Rules, 2014, read with section 134 of the Companies Act, 2013. It sits inside the board's report that accompanies the financial statements.
This is separate from the section 21 annual report to the District Officer. One is a company-law disclosure to shareholders through the board's report; the other is a POSH-law filing to the District Officer. Both must be true in the same year. For the wider set of board-report duties, see what statutory compliance covers.
What is the POSH penalty under section 26?
Non-compliance is punishable with a fine that may extend to Rs 50,000. Section 26 of the POSH Act, 2013 applies where an employer fails to constitute an Internal Committee, does not act on the Committee's recommendations, does not file the section 21 report, or contravenes any other provision.
A repeat offence carries a heavier consequence under section 26. It can double the punishment, and lead to cancellation of the licence or registration required to carry on the business, or refusal to renew it. So the real risk on repetition is the licence, not only the fine.
How do I confirm POSH duties myself?
- Read section 4 for the 10-employee Internal Committee threshold and section 6 for the Local Committee route.
- Check the timeline against section 9 (3 months), section 11 (90 days) and section 13 (report in 10 days, action in 60 days).
- Confirm the section 21 annual report went to the District Officer, and that the director's report carries the rule 8(5)(x) statement.
- Use the Ministry of Women and Child Development SHe-Box portal to see the official complaint channel and District Officer details.
Why do employers fail POSH compliance?
- Assuming a small headcount means no duty, and ignoring the section 6 Local Committee route below 10 employees.
- Constituting an Internal Committee without the external NGO member, or without a woman Presiding Officer, so it fails section 4.
- Filing the director's-report statement under rule 8(5)(x) but never filing the section 21 annual report with the District Officer.
- Letting the inquiry drift past the 90-day limit in section 11, or acting on the report later than the 60 days in section 13.
Where are POSH and company duties notified?
The POSH Act sits with the Ministry of Women and Child Development, while the director's-report disclosure and the board's report move through MCA. Complied AI keeps MCA updates in one feed so you can open the source behind a company-law change. When the duty itself is the question, read section 4 of the POSH Act next to that update, and see the related CSR compliance guide for another board-level duty.
Practical checks
Common questions
Does a 12-person startup need an Internal Committee?
Yes. Section 4 of the POSH Act, 2013 requires an Internal Committee at every workplace employing 10 or more employees. A 12-person startup is over that threshold, so it constitutes an IC with a woman Presiding Officer, at least two employee members and one external member from an NGO or someone familiar with sexual harassment issues.
We have 6 staff. Do we do nothing under POSH?
No, the duty shifts, it does not disappear. A workplace with fewer than 10 employees is below the section 4 Internal Committee threshold, but a complaint there goes to the Local Committee that the District Officer constitutes under section 6. The employer still cannot ignore prevention, and a complaint against the employer himself also goes to the Local Committee.
How long does a woman have to file a POSH complaint?
Three months. Section 9 of the POSH Act, 2013 gives the aggrieved woman 3 months from the date of the incident to make a written complaint, and 3 months from the last incident where it is a series. The Committee may extend the window by a further 3 months for reasons recorded in writing.
How long can a POSH inquiry take?
Ninety days. Section 11 of the POSH Act, 2013 requires the Internal Committee or Local Committee to complete the inquiry within 90 days. Under section 13 the Committee then sends its inquiry report to the employer or District Officer within 10 days, and the employer acts on the recommendations within 60 days.
What is the fine if we never set up an IC?
Up to Rs 50,000. Section 26 of the POSH Act, 2013 makes failure to constitute an Internal Committee, or any other contravention, punishable with a fine that may extend to Rs 50,000. A repeat offence can double the penalty and lead to cancellation or non-renewal of the licence or registration to conduct business.
Where do we file the POSH annual report?
With the District Officer. Section 21 of the POSH Act, 2013 requires the Internal Committee or Local Committee to prepare an annual report each calendar year and submit it to the employer and the District Officer. The District Officer forwards a brief report to the State Government under the same section.
Does a private company disclose POSH in its board report?
Yes. Rule 8(5)(x) of the Companies (Accounts) Rules, 2014 requires the director's report of every company covered by it to state that the company has complied with the provisions relating to the constitution of an Internal Committee under the POSH Act, 2013. This is separate from the section 21 annual report to the District Officer.
Is the POSH Act only for women employees?
The complainant must be a woman. The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 protects an aggrieved woman, and section 2 defines her widely to include any woman at the workplace, whether employed there or not. Many employers run a gender-neutral internal policy on top of it, but the statutory machinery answers to a woman's complaint.
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How this guide was prepared
This guide is published by the Complied AI research desk. Its source list and stated position were checked against the official records shown below on 12 September 2026.
Automation, including AI, may assist research, drafting and structure. It does not replace the official record or amount to an independent professional review. Read our editorial standards and corrections policy.
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