POSH Compliance: What the Act Requires

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 — the POSH Act — requires every employer with ten or more employees to constitute an Internal Complaints Committee, adopt a written anti-sexual harassment policy, conduct awareness programmes, and submit an annual report to the District Officer. Failure to constitute an ICC attracts a fine of up to Rs 50,000 for a first offence, with the possibility of cancellation of business licences or registration, in case of any grave non-compliances, subject to the decision of the registration authority. Beyond statutory penalties, a poorly managed complaint exposes the employer to civil liability and regulatory scrutiny that significantly exceeds the cost of preventive compliance.

ICC Constitution and Governance

Every employer covered by the POSH Act must constitute an Internal Complaints Committee (ICC) at each office or administrative unit. The ICC must have at least four members: a Presiding Officer (a senior-level 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 social work experience. The external member requirement is frequently overlooked — an ICC without a qualifying external member is non-compliant regardless of the seniority of its internal members. We advise on ICC constitution, member qualification assessment, appointment documentation, and ongoing governance obligations.

POSH Policy Drafting

A compliant POSH policy must define sexual harassment with reference to the Act’s definition, set out the ICC’s composition and mandate, describe the complaint filing process and timelines, explain interim relief measures available during inquiry, state the inquiry procedure and natural justice requirements, specify consequences of substantiated complaints, and include provisions covering false or malicious complaints. Our team drafts customised POSH policies calibrated to the organisation’s size, structure, workforce composition, and industry — not generic templates that leave critical definitional and procedural gaps.

Complaint Handling and ICC Inquiry Support

When a complaint is received, the ICC must follow a defined statutory process under the POSH Act. The timeline is strict: complaint filed within three months of the incident, inquiry completed within ninety days, and the report and recommendations submitted to the employer within ten days of completion. The inquiry must observe natural justice — both parties must have full opportunity to present their case, call witnesses, and respond to evidence. The employer must act on the ICC’s recommendations within sixty days. Our expert lawyers support the employers through the complete inquiry process — advising the ICC on procedure, preparing inquiry documentation, and representing the employer where proceedings are subsequently challenged.

Training, Awareness, and Annual Reporting

Under Section 19 of the POSH Act, employers must organise workshops and awareness programmes at regular intervals, display the penal consequences of sexual harassment at conspicuous places, and provide necessary facilities to the ICC. Under Section 21, an annual report of the number of cases filed and their disposal must be submitted to the District Officer — an obligation many employers are unaware of. ATB Legal delivers structured POSH training for all employees and separate ICC-specific capacity-building sessions covering inquiry procedures, natural justice requirements, and documentation standards.