Compliance Requirements for Corporates Under the POSH Act: Key Policies and Regulations

 

Overview of the POSH Act, 2013

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (“POSH Act”) is India’s first comprehensive legislation aimed at preventing sexual harassment at the workplace and safeguarding the dignity of working women. Enacted pursuant to India’s obligations under the Vishaka Guidelines and international conventions, the POSH Act creates a binding compliance framework for all covered establishments.

Beyond being a statutory requirement, POSH compliance is now a critical governance issue. Non-compliance can expose organisations to regulatory penalties, reputational damage, labour disputes, and operational risk. For this reason, organisations increasingly rely on an experienced employment labour law firm India to design, audit, and implement POSH frameworks that are both legally compliant and operationally effective.

This article outlines the key policies, structures, and obligations that every establishment must implement under the POSH Act to ensure a safe, inclusive, and legally compliant workplace.

Constitution of the Internal Complaints Committee

The cornerstone of compliance under the POSH Act is the constitution of an Internal Complaints Committee (“ICC”). Section 4 of the Act mandates that every establishment employing ten or more employees must constitute an ICC at each office or administrative unit.

The ICC serves as an internal, quasi-judicial body responsible for receiving, investigating, and resolving complaints of sexual harassment in a time-bound and impartial manner. Failure to constitute a valid ICC is itself a violation of the POSH Act, regardless of whether any complaint has been received.

From a compliance perspective, employment audits conducted by an employment labour law firm India often reveal that improper ICC constitution remains one of the most common regulatory lapses.

Composition of the ICC

The POSH Act prescribes a specific and mandatory structure for the ICC, with the intent of ensuring independence, sensitivity, and fairness. At least 50 percent of the ICC members must be women.

The ICC must comprise:

Presiding Officer
A senior-level woman employee of the organisation must be appointed as the Presiding Officer. Where a senior woman employee is not available, the Act permits nomination from another office or unit of the same employer.

Employee Members
A minimum of two employee members must be appointed from within the organisation. These members should have demonstrated commitment to women’s issues or possess experience in social work or legal knowledge relevant to handling sexual harassment complaints.

External Member
One external member must be appointed from an NGO, association, or profession familiar with issues of sexual harassment, gender justice, or labour law. The inclusion of an external member is mandatory and acts as a safeguard against internal bias or influence.

Incorrect appointment of the external member is a frequent compliance risk flagged by any competent employment labour law firm India during POSH audits.

Tenure and Responsibilities of the ICC

ICC members may hold office for a maximum tenure of three years from the date of appointment. Upon completion of the term, the employer is required to reconstitute the ICC by appointing new members or renewing appointments in accordance with the Act.

The ICC’s responsibilities extend beyond complaint handling and include:

• Providing a safe and accessible mechanism for filing complaints without fear of retaliation

• Conducting impartial inquiries in accordance with principles of natural justice

• Ensuring adherence to statutory timelines under the POSH Act
  Recommending interim reliefs, disciplinary action, or corrective measures

• Submitting mandatory reports to the employer and district officer
  
  

The ICC’s findings carry legal consequences and must therefore be reasoned, documented, and defensible—often necessitating procedural guidance from an employment labour law firm India.

POSH Policy Implementation

Section 19 of the POSH Act read with Rule 13 of the POSH Rules requires every employer to formulate and widely disseminate a written internal POSH policy. This policy must clearly articulate the organisation’s zero-tolerance stance on sexual harassment and outline the redressal framework.

A compliant POSH policy should include:

• Statutory definition of sexual harassment

• Illustrative examples of prohibited conduct

• Scope and applicability of the policy

• Details of the ICC members and contact information

• Step-by-step complaint redressal procedure

• Timelines, confidentiality obligations, and consequences of misconduct
  
  

Generic or outdated policies are increasingly scrutinised during inspections and disputes. As a result, organisations often engage an employment labour law firm India to draft or update POSH policies aligned with judicial developments and sector-specific risks.

Mandatory Annual Reporting

Section 21 of the POSH Act and Rule 14 of the POSH Rules impose an annual reporting obligation on the ICC. The ICC must submit an annual report to the district officer and separately to the employer.

The report must include:

• Number of complaints received during the year

• Number of complaints resolved

• Number of cases pending beyond 90 days

• Details of action taken against respondents

• Number of awareness and training programmes conducted
  
  

Several states have introduced online filing systems for POSH annual reports. Non-filing or incorrect filing may attract penalties and adverse regulatory action. Annual compliance tracking is therefore a critical function often managed with advisory support from an employment labour law firm India.

Awareness and Training Programs

Employers are required under Section 19 of the POSH Act to conduct regular awareness and capacity-building programs for employees and ICC members.

Effective training programs should cover:

• Legal framework and employee rights

• Complaint filing procedures

• Role and powers of the ICC

• Case studies and practical scenarios

• Consequences of false, malicious, or retaliatory conduct
  
  

While the Act does not prescribe a minimum number of sessions, best practices recommend at least two training programs annually, with additional sessions when onboarding new employees or reconstituting the ICC. Structured training conducted in consultation with an employment labour law firm India significantly reduces procedural lapses during inquiries.

Confidentiality Obligations

Confidentiality is a statutory obligation under the POSH Act. Disclosure of the identity of the complainant, respondent, witnesses, or details of the inquiry is strictly prohibited, except where permitted by law.

Employers and ICC members must ensure:

• Restricted access to complaint records

• Secure storage of documents and digital files

• Controlled internal communication

• Confidential handling of inquiry outcomes

Breach of confidentiality can independently attract penalties and undermine the integrity of the process, making confidentiality protocols a critical area of compliance.

Employer Responsibilities

In addition to the above, employers have specific statutory duties under the POSH Act, including:

• Providing a safe and harassment-free workplace

• Displaying penal consequences of sexual harassment prominently

• Assisting the ICC with infrastructure and logistical support

• Ensuring attendance of parties and witnesses

• Treating sexual harassment as misconduct under service rules

• Monitoring timely submission of ICC reports
  
  

Failure to discharge these responsibilities can expose employers to fines, licence cancellation, and reputational risk—concerns routinely addressed through compliance audits by an employment labour law firm India.

Conclusion

POSH compliance is no longer a box-ticking exercise. It is a critical component of workplace governance, risk management, and organisational culture. Establishments that proactively implement compliant ICC structures, updated policies, training programs, and reporting mechanisms are better positioned to prevent disputes and protect workplace dignity.

Engaging an experienced employment labour law firm India allows organisations to move beyond minimal compliance and build defensible, transparent, and employee-centric POSH frameworks. Ultimately, robust POSH compliance strengthens trust, productivity, and long-term organisational resilience.