POSH Act Compliance Guide: Policy, ICC & Penalties (2026)

Does your company have 10 or more employees? If yes, the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act) mandatorily applies to you.

Non-compliance is not just risky; it's expensive. Penalties can go up to ₹50,000 for the first offence, and twice that for subsequent ones, including cancellation of your business license.

1. Mandatory Requirement: Internal Complaints Committee (ICC)

You must constitute an ICC at each branch or office with 10+ employees. The composition is strict:

• Presiding Officer: A senior woman employee.
• Internal Members: At least two employees committed to the cause of women or having legal knowledge.
• External Member: One person from an NGO or an association committed to the cause of women (to ensure neutrality).
• Gender Balance: At least 50% of the members must be women.

2. Drafting a Robust POSH Policy

Simply having a policy on paper isn't enough. It must be:

• Comprehensive: Define what constitutes sexual harassment (physical, verbal, non-verbal).
• Accessible: Displayed prominently in the workplace and included in the employee handbook.
• Remedial: Outline the exact procedure for filing a complaint and the timeline for inquiry (max 90 days).

3. Annual Returns (The Forgotten Step)

Many companies form an ICC but forget to file the Annual Report involving the number of cases filed and disposed of. This report must be submitted to the District Officer properly.

4. Training & Sensitization

The law mandates regular workshops to sensitize employees about appropriate workplace behavior and the consequences of harassment.

Consequences of Non-Compliance

• Monetary Fine: Up to ₹50,000.
• License Cancellation: Courts have the power to cancel the business registration.
• Reputational Damage: News of an unsafe workplace spreads fast on social media, hurting hiring and brand image.

Frequently Asked Questions (FAQ)