POSH Policy Basics: Setting Up an Internal Committee

A POSH policy sets out how your organisation prevents, prohibits and redresses sexual harassment of women at the workplace, as required by the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, commonly called the POSH Act. For HR teams, the core of compliance is setting up an Internal Committee, publishing a clear policy, training people and handling complaints fairly within the timelines in the law. This guide covers the basics: who must comply, how to constitute the Internal Committee, how complaints and inquiries work, what training and reporting you need, and the mistakes that most often lead to trouble. It is an overview for HR practitioners, not legal advice; involve counsel in setting up your committee and in any actual case.

Who Must Comply with the POSH Act

The POSH Act applies to every workplace in India, public or private, regardless of size. The obligations differ by headcount:

• Organisations with 10 or more employees must constitute an Internal Committee (IC) at each office or administrative unit.
• Organisations with fewer than 10 employees do not constitute an IC; complaints go to the Local Committee constituted by the District Officer.

"Employee" is defined broadly. It includes permanent, temporary, ad hoc and daily wage staff, trainees, apprentices, interns and contract workers, whether employed directly or through an agency. "Workplace" also extends beyond the office, covering places visited during the course of employment, including transport provided by the employer and, in practice, work-related online interactions.

What Counts as Sexual Harassment

Under the Act, sexual harassment includes unwelcome acts or behaviour such as:

• Physical contact and advances.
• A demand or request for sexual favours.
• Making sexually coloured remarks.
• Showing pornography.
• Any other unwelcome physical, verbal or non-verbal conduct of a sexual nature.

The Act also lists circumstances such as implied promise of preferential treatment, threats about employment, interference with work, creating a hostile environment and humiliating treatment likely to affect health or safety. Your policy should give relatable examples, including examples from messaging apps and video calls, since much harassment now happens online.

How to Constitute the Internal Committee

The composition of the IC is prescribed by the Act:

Member	Requirement
Presiding Officer	A woman employed at a senior level in the workplace. If none is available at that office, from another office or unit of the same employer.
Employee members	At least two employees, preferably committed to the cause of women or with experience in social work or legal knowledge
External member	One member from a non-governmental organisation or association committed to the cause of women, or a person familiar with issues relating to sexual harassment
Gender composition	At least one half of the total members must be women
Term	Not more than three years from the date of nomination

Practical tips:

• Choose members whom employees trust and who can be impartial. Avoid placing the CEO or direct business heads on the IC where it could inhibit complaints.
• Choose the external member carefully, checking their experience. They are paid fees or allowances for proceedings as prescribed.
• Issue a formal written order constituting the IC, with names, contact details and term.
• Display the IC details prominently at the workplace and on your intranet.
• Constitute an IC at each office or unit with 10 or more employees, or ensure a structure that provides one, as required.
• Train IC members on the law, inquiry procedure, natural justice and report writing before they hear a case.

What the POSH Policy Should Contain

A good POSH policy is clear and practical. Sections to include:

1. Purpose and commitment statement.
2. Scope: who is covered and what counts as the workplace.
3. Definition of sexual harassment, with examples.
4. Internal Committee composition and contact details.
5. How to make a complaint, including help for those who cannot write one.
6. Conciliation option at the request of the complainant.
7. Inquiry procedure and timelines.
8. Interim relief available during inquiry.
9. Confidentiality obligations.
10. Protection against retaliation.
11. Consequences of harassment and of false or malicious complaints, explaining that inability to prove a complaint is not the same as a false complaint.
12. Awareness and training commitments.

Sample wording on retaliation: "The company will not tolerate any form of retaliation against anyone who raises a complaint in good faith, participates in an inquiry or supports a colleague. Retaliation will itself be treated as misconduct."

Complaint and Inquiry Timelines

The Act sets timelines that HR and the IC must track carefully.

Step	Timeline under the Act
Complaint filed by aggrieved woman	Within 3 months of the incident, or of the last incident in a series. The IC may extend by up to 3 more months for reasons recorded in writing.
Copy of complaint to respondent	Within 7 days of receiving the complaint
Respondent's reply	Within 10 days of receiving the copy
Inquiry completed	Within 90 days
Inquiry report to employer	Within 10 days of completing the inquiry
Employer action on recommendations	Within 60 days of receiving the report
Appeal by either party	Within 90 days of the recommendations

The complaint can be filed by the aggrieved woman, or in certain circumstances, such as physical or mental incapacity, by others on her behalf as provided in the rules.

How an Inquiry Works in Practice

1. Receive and acknowledge. The IC receives the written complaint. If the complainant needs help writing it, an IC member assists.
2. Conciliation, if requested. At the complainant's request, the IC may try to settle the matter through conciliation before inquiry. No monetary settlement can be the basis of conciliation.
3. Notice to respondent. Copy of the complaint and supporting documents, with time to reply.
4. Hearings. Both parties are heard, witnesses examined and documents reviewed, following principles of natural justice. Legal practitioners are not permitted to represent parties during IC proceedings.
5. Interim relief. On written request of the complainant, the IC may recommend interim measures such as transfer of either party, leave for the complainant or restraining the respondent from reporting on the complainant's work.
6. Findings and report. The IC records findings with reasons and recommends action.
7. Employer action. The employer acts on the recommendations within the timeline.

Confidentiality is a legal obligation. The identity of the complainant, respondent and witnesses, and the contents of the proceedings, must not be published or made known, subject to limited exceptions.

Awareness, Training and Display

The employer's duties go beyond the IC. You must:

• Provide a safe working environment.
• Display the consequences of sexual harassment and the order constituting the IC at a conspicuous place.
• Organise workshops and awareness programmes for employees at regular intervals.
• Conduct orientation programmes for IC members.
• Provide facilities to the IC for dealing with complaints and conducting inquiries.
• Assist the complainant if she chooses to file a complaint under criminal law.
• Treat sexual harassment as misconduct under service rules.

Build POSH awareness into onboarding and run refresher sessions at least annually. Training for managers should cover how to respond when an employee confides in them, and the importance of directing complaints to the IC rather than handling them informally. Our guide on building an employee handbook shows where the POSH summary fits.

Annual Reporting

The IC must prepare an annual report and submit it to the employer and the District Officer. The rules prescribe contents including the number of complaints received, disposed of, pending for more than 90 days, workshops and awareness programmes conducted, and the nature of action taken. Employers must also include information on the number of cases filed and their disposal in their annual report, or if no annual report is required, inform the District Officer. Mark the reporting date in your compliance calendar and check your state's specific format and portal, since some states have online filing.

Penalties for Non-Compliance

An employer who fails to constitute an IC, does not act on recommendations, or contravenes other provisions may be fined up to fifty thousand rupees. Repeat offences can attract higher penalties and cancellation of licence or registration needed to carry on business. Beyond the statutory penalty, poor handling of a complaint causes lasting reputational and cultural damage.

Common Mistakes

• No IC despite having 10 or more employees, often in fast-growing startups.
• IC lapsed because the three year term ended or members left the company.
• No external member, or an external member without relevant background.
• Managers trying to resolve complaints informally.
• Missed timelines, especially the 90 day inquiry window.
• Breaches of confidentiality through gossip or email forwarding.
• Annual report not filed.

Frequently Asked Questions

Is POSH applicable to companies with fewer than 10 employees?

The Act applies to all workplaces. Organisations with fewer than 10 employees do not need an Internal Committee; complaints are handled by the Local Committee at the district level.

Can a man file a complaint under the POSH Act?

The Act protects women. Many companies adopt gender-neutral anti-harassment policies that cover all employees, handled through a parallel internal process. Take advice on how to structure this.

How long is the Internal Committee term?

Members hold office for not more than three years from the date of their nomination.

Does POSH apply to remote work?

The definition of workplace is broad and includes places visited during employment. Harassment through work calls, chats and email in the course of employment is generally treated as within scope. Make this explicit in your policy.

Who should be the external member?

A person from an NGO or association committed to the cause of women, or someone familiar with issues relating to sexual harassment, such as an experienced practitioner. Check their background and independence.

Support Your Compliance Communication

POSH compliance rests on your committee, policy and culture, not software. Fininvo HRMS can help with the supporting work: sharing policies through document management and self-service, running compliance training through the learning module and sending company announcements. See learning and development, employee management and pricing.