POSH Compliance-India FAQs

1. 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.

2. 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.

3. 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.

4. How must a POSH complaint be handled?

A complaint must be filed within three months of the incident. The ICC must complete its inquiry within ninety days and submit its report to the employer within ten days of completion. The inquiry must observe natural justice — both parties must have a full opportunity to present their case. The employer must act on the ICC’s recommendations within sixty days.

5. Does POSH compliance apply to remote and hybrid workplaces?

Yes. The POSH Act applies to any workplace — including home offices, client sites, and any location where work is performed in connection with the employer. The Supreme Court of India has confirmed that the protections of the Act extend to virtual and remote work environments. Employers must ensure their POSH policies expressly cover remote work scenarios, online communications, and video conference environments as potential sites of prohibited conduct.

6. What training obligations do employers have under the POSH Act?

Section 19 requires employers to organise awareness programmes at regular intervals and provide ICC capacity-building sessions covering inquiry procedures, natural justice requirements, and documentation standards. Annual training is the accepted minimum standard.