Most POSH guidance is written as a compliance checklist: constitute a committee, write a policy, run a training, file a return. That framing badly understates the risk, because the way employers actually get hurt under the POSH Act is not by failing to have a committee. It is by having one that gets the inquiry wrong.
The Supreme Court has set aside a dismissal that followed a POSH inquiry — not because the allegations were unfounded, but because the committee moved in undue haste and did not give the person facing them a fair opportunity to respond. The employer ended up with an invalidated outcome and a rebuke. That is the risk that should be driving your POSH programme.
| Applies at | 10 or more employees (s.4) |
| Complaint window | 3 months, extendable by 3 (s.9) |
| Inquiry must complete in | 90 days (s.11(4)) |
| Employer must act within | 60 days of the recommendation (s.13) |
| Penalty for non-compliance | Up to ₹50,000; doubled on repeat (s.26) |
| Affected by the Labour Codes? | No — POSH is standalone |
Position stated as at July 2026.
POSH was not touched by the Labour Codes
Worth stating plainly, because it is a common point of confusion. When the four Labour Codes commenced on 21 November 2025 they subsumed twenty-nine central labour statutes between them. The POSH Act is not one of them. The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 remains a standalone statute, read with the POSH Rules, 2013.
So Indian employers now run two parallel compliance tracks: the Codes for wages, hours, social security and industrial disputes, and the POSH Act for sexual-harassment prevention and redress. Nothing you did to prepare for the Codes touched your POSH obligations.
Where the obligation comes from
The Act gave statutory force to guidelines the Supreme Court had issued sixteen years earlier. In Vishaka v State of Rajasthan, (1997) 6 SCC 241, the Court — confronted with the absence of any legislative framework — treated sexual harassment at work as a violation of fundamental rights and laid down binding directions for employers. Those directions operated as law until Parliament legislated in 2013, and they remain the interpretive backbone of the statute.
A terminology note that signals whether someone knows the area: the Act and Rules use Internal Committee. "ICC" is a widely used holdover from the Vishaka-era vocabulary. Both are understood; the statutory term is IC.
The employer's obligations, by section
| Obligation | Section | Detail |
|---|---|---|
| Constitute an Internal Committee | s.4 | At every workplace with 10 or more employees. Separate IC at each office or branch meeting the threshold. |
| Compose it correctly | s.7 | Presiding Officer who is a senior woman employee; at least two members from among employees; at least one external member from an NGO or association committed to women's causes, or a person familiar with the issues. At least half the members must be women. Members serve a maximum term of three years. |
| Have a policy and publicise it | s.19 | Display at the workplace the penal consequences of sexual harassment and the composition of the IC. Organise workshops and awareness programmes, and orientation for IC members. |
| Run the inquiry properly | ss.11–13 | The IC has the powers of a civil court under the CPC for summoning witnesses and requiring documents. Inquiry within 90 days; report to the employer; employer acts within 60 days. |
| Provide interim relief where sought | s.12 | Transfer, leave of up to three months, or other relief, on the IC's recommendation during the pendency of the inquiry. |
| Maintain confidentiality | s.16 | No publication of the complaint, the identities of the parties or witnesses, the proceedings, or the recommendations. |
| File the annual report | s.21 | To the District Officer, covering complaints received, disposed of, and pending — even in a year with no complaints. |
| Assist in criminal proceedings | s.19 | Where the complainant chooses to pursue them. |
Under 10 employees, you do not constitute an IC — complaints go to the Local Committee constituted by the District Officer. You are not exempt from the Act; you are exempt from that one obligation.
The case that should shape your process
In Aureliano Fernandes v State of Goa (Civil Appeal No. 2482 of 2014, decided 12 May 2023), a university's Internal Committee inquired into multiple complaints against a faculty member. He was repeatedly absent, citing medical reasons. The committee proceeded ex parte, found grave misconduct, and recommended termination, which the disciplinary authority imposed.
The Supreme Court set the outcome aside. The inquiry had been conducted in undue haste; despite the medical absences, insufficient time had been given to present a defence; the principles of natural justice had not been satisfied. Notably, his separate challenge to the committee's composition — that members were junior to him — was not upheld. The procedural failure was what mattered.
The Court also used the case to issue wide directions aimed at strengthening implementation, having observed serious lapses in enforcement a decade after the Act. Related proceedings, including Initiatives for Inclusion Foundation v Union of India (2024) 1 SCC 779, have driven surveys of IC constitution in private organisations and closer district-level monitoring.
The inquiry, step by step
- Complaint. In writing, within three months of the incident (or the last incident in a series), extendable by a further three months where the IC is satisfied that circumstances prevented earlier filing. Assistance must be provided where the complainant cannot make it in writing.
- Notice to the respondent, with a copy of the complaint, and a defined period to reply in writing with a list of documents and witnesses.
- Conciliation, only if the complainant requests it. It cannot be initiated by the employer or the IC, no monetary settlement may form the basis of it, and if a settlement is reached no further inquiry is conducted.
- Inquiry. Both parties heard, evidence disclosed, opportunity to question the material against them. The IC has civil-court powers for summoning and document production. Neither party may bring a legal practitioner.
- Interim relief where the complainant seeks it and the IC recommends it.
- Report within 90 days of the complaint, submitted to the employer.
- Employer action within 60 days of receiving the recommendations.
- Appeal. Either party may appeal within 90 days of the recommendation.
Penalties, and where they actually land
| Failure | Consequence |
|---|---|
| Not constituting an IC; not acting on IC recommendations; not filing the annual report; contravening or abetting contravention of the Act or Rules | Fine up to ₹50,000 (s.26) |
| Repeat conviction | Twice the punishment, and the appropriate Government may cancel the licence, registration or approval under which the employer operates (s.26(2)) |
| Breach of confidentiality | Penalty under s.17 |
| Non-disclosure in the board's report | Separate exposure under company law for companies subject to those disclosure requirements |
The fine is not the real cost, and treating ₹50,000 as the ceiling of exposure is a mistake. The material risks are an invalidated inquiry and a reinstated respondent, licence consequences on a second conviction, adverse disclosure in the board's report, and reputational damage that lands well outside the statute.
The failure mode that catches good employers
The most common defect is not the absence of a committee. It is a committee that has quietly stopped being validly constituted:
- The Presiding Officer left the organisation and nobody reconstituted the IC.
- The three-year term expired and members were never reappointed.
- The external member lapsed — the engagement ended, or the person is no longer with the NGO they were nominated from.
- The gender balance broke after departures, so women are no longer at least half.
- New offices crossed 10 employees without an IC being constituted there.
Any of these, discovered after a complaint is filed, puts the validity of the whole inquiry in play. A committee that is invalid on the day the complaint arrives cannot produce a finding that survives challenge — which means the employer has failed both the respondent and, more seriously, the complainant.
An audit worth running this quarter
- Confirm the IC is validly constituted today, at every location with 10 or more employees, with dates of appointment against the three-year limit.
- Confirm the external member is currently engaged, and that the engagement is documented.
- Confirm at least half the members are women and there is a senior woman Presiding Officer.
- Check that the penal consequences and the IC composition are displayed — physically and, for distributed teams, digitally.
- Confirm the annual report was filed for the last cycle, including in years with no complaints.
- Confirm training records exist for both employees and IC members, with dates.
- Check your contractor and vendor agreements require POSH compliance, and that you know which committee has jurisdiction over a complaint involving contract staff or a client representative.
Where the record-keeping matters
Almost everything in that audit is a date question: when each member was appointed, when the term expires, when training was last delivered, when the notice was displayed, when the annual report went. Those dates live in HR records, and the moment they live in a separate spreadsheet maintained by whoever last owned POSH, they go stale. Helion holds committee appointments, training records and location headcount against the same employee and entity data that drives everything else, so the question "is our IC validly constituted at every location that crossed ten employees this year" is answerable without an email thread.
Frequently asked questions
Is POSH compliance mandatory for all companies in India?
The Act applies to every workplace. The obligation to constitute an Internal Committee applies to employers with 10 or more employees under Section 4. Below that threshold complaints are handled by the Local Committee constituted by the District Officer, but the employer's other duties under the Act continue.
What is the composition of an Internal Committee?
Under Section 7: a Presiding Officer who is a senior woman employee at the workplace; at least two members from among employees, preferably committed to the cause of women or with relevant experience; and at least one external member from an NGO or association committed to women's causes or familiar with the issues. At least half the members must be women, and members serve a maximum term of three years.
How long does a POSH inquiry take?
The Internal Committee must complete the inquiry within 90 days of the complaint under Section 11(4). The employer must act on the recommendations within 60 days under Section 13, and either party may appeal within 90 days.
What is the penalty for not having an Internal Committee?
A fine of up to ₹50,000 under Section 26. On a second conviction the punishment is doubled and the appropriate Government may cancel the licence, registration or approval under which the employer carries on business.
Did the new Labour Codes change POSH obligations?
No. The POSH Act, 2013 is a standalone statute and was not among the twenty-nine central labour laws subsumed into the four Labour Codes that commenced on 21 November 2025. POSH obligations are unchanged and run in parallel with the Codes.
Can an employer be liable if the Internal Committee conducts the inquiry badly?
Yes, and this is the principal practical risk. In Aureliano Fernandes v State of Goa (2023) the Supreme Court set aside the outcome of an inquiry conducted in undue haste that denied the respondent a reasonable opportunity to be heard, notwithstanding his repeated absences. A procedurally defective inquiry produces a finding that does not survive challenge.
Do we need to file an annual report if we received no complaints?
Yes. The Section 21 annual report to the District Officer is due whether or not any complaints were received during the year.
Does the POSH Act cover contract workers and interns?
The Act's coverage extends beyond permanent employees to include, among others, contract and temporary workers, probationers, apprentices and interns, whether or not they are on the employer's payroll. Where contractors are involved, agree in advance which committee has jurisdiction and how evidence and confidentiality will be handled.