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Employer Duties Under the POSH Act
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Employer Duties Under the POSH Act: Training, Policy and Annual Reports
Every employer in India, from a small startup to a large factory, has legal duties under the POSH act to keep women safe at work. Many companies know that they need an Internal Committee, but fewer realise that training, a written policy and yearly reports are just as important.
In this guide, we explain in plain words what employers must do under the law: how to build a safe workplace, set up the committee, run training, write a policy, handle complaints and file the annual report. We also cover the new Board's Report rule for companies, common mistakes and real-life style examples, so you can check your own workplace step by step.
What Is the POSH Act and Why Does It Matter?
POSH stands for Prevention of Sexual Harassment. The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 came after the Supreme Court's Vishaka guidelines of 1997. It gives women a clear way to complain about sexual harassment at work and places clear duties on employers.
The law covers offices, factories, shops, hospitals, schools, government departments and private companies. It also covers places that an employee visits during work, such as client sites, business trips and transport arranged by the employer. Remote and hybrid work can also fall within the idea of a workplace when the harassment is connected to the job.
For an employer, ignoring the law is risky. Apart from penalties, a badly handled complaint can damage trust, hurt staff morale and bring legal trouble.
Who Must Follow the POSH Act?
•        Any workplace with 10 or more employees must set up an Internal Committee (IC), also called the Internal Complaints Committee (ICC).
•        Workplaces with fewer than 10 employees do not need an IC, but women there can complain to the Local Committee set up by the District Officer. The Local Committee also hears complaints against the employer himself or herself.
•        The headcount includes regular, contract, temporary, trainee and part-time staff, and in many cases workers sent by agencies. Count everyone, not only permanent staff.
•        Companies must also follow a separate disclosure rule in their Board's Report, which we explain below.
Main Duties of an Employer Under the POSH Act
Section 19 of the Act lists what an employer must do. Here are the main duties in simple words.
1. Provide a safe working environment
The employer must create a workplace where women are safe from harassment, including from outsiders such as clients, vendors and visitors who come to the workplace.
2. Constitute an Internal Committee
The IC must have a Presiding Officer who is a senior woman employee, at least two other employees who are committed to women's causes or have social work or legal knowledge, and one external member from an NGO or association working for women, or a person familiar with the issues of sexual harassment. At least half the members must be women. Members normally serve for a term not exceeding three years.
3. Display information at the workplace
The employer must display, in a visible place, the penal consequences of sexual harassment and the order that formed the IC, including the names and contact details of the members.
4. Make and share a written policy
A clear POSH policy tells employees what counts as sexual harassment, how to complain, how the inquiry works and what protection is available. It should be shared with every employee and updated as needed.
5. Conduct awareness programmes and training
The employer must organise workshops and awareness programmes at regular intervals so that staff understand the law, and must give orientation programmes to IC members so that they can handle inquiries correctly.
6. Provide facilities for the inquiry
The employer must give the IC the support it needs, such as a private space, records, access to witnesses and any information it asks for, and make sure that people attend the inquiry.
7. Help the complainant take legal action, if she wishes
If the complainant wants to file a criminal complaint against the person who harassed her, the employer should assist her in doing so.
8. Treat sexual harassment as misconduct
The employer must treat sexual harassment as misconduct under its service rules and take action on the IC's findings within the time allowed.
9. Monitor the process and report
The employer must make sure that the IC submits its annual report on time and must include the required details in its own annual report. We cover this in detail later in this guide.
Training Under the POSH Act: What, Who and How Often
Training is one of the most important duties, and it is also the one that most workplaces skip. A good training programme prevents problems before they start.
Who should be trained
•        All employees, including new joiners, managers, trainees, interns and contract staff.
•        IC members, who need deeper training on inquiry rules, fairness, confidentiality and report writing.
•        Senior leaders and HR, who must understand how to support the process and avoid retaliation.
What the training should cover
•        The meaning of sexual harassment, with everyday workplace examples, such as unwelcome comments, messages, touching, jokes, requests for favours and behaviour on online platforms.
•        How to make a complaint, and where to find the IC members.
•        How the inquiry works, including the time limits, confidentiality and protection against retaliation.
•        The company's policy and the consequences of breaking it.
•        Special points for remote and hybrid work, such as video calls, chat apps and social media.
How often should training be done
The law says that programmes should be held at regular intervals. A good practice is to train all staff at least once a year, to train every new joiner at the start, and to refresh the IC members' knowledge regularly. Keep proof of every session, such as the date, topics, attendance sheets and training materials.
What Should a POSH Policy Include?
•        A statement that the company has zero tolerance for sexual harassment.
•        A clear definition of sexual harassment under the Act, with examples.
•        Who is covered: employees, contract staff, trainees, interns, visitors and others.
•        How and where to complain, including email IDs and phone numbers of IC members.
•        The steps and time limits of the inquiry process.
•        Protection from retaliation and a promise of confidentiality.
•        Possible consequences, such as warning, suspension, termination or other action.
•        Action against false or malicious complaints, as allowed by the Act, while making it clear that a complaint that is not proved is not automatically false.
•        Rules for remote work, business travel and client sites.
The Internal Committee Process in Simple Steps
Employers should also understand the basic timeline, so that they can support the IC and follow up on its recommendations.
•        A complaint is normally made in writing within three months of the incident, and the IC can extend this by another three months for good reasons.
•        The IC may try to settle the matter through conciliation if the complainant asks, but without any money settlement as the basis.
•        If an inquiry is needed, it must be completed within 90 days.
•        The IC sends its report to the employer within 10 days of finishing the inquiry.
•        The employer must act on the recommendations within 60 days.
•        Either side can appeal within 90 days of the recommendations.
Confidentiality is essential. The identity of the complainant, the respondent and the witnesses, and the details of the inquiry, should not be made public.
Running a fair inquiry takes skill, and mistakes can cause problems later. Many employers take help from a team that handles the POSH act every day to set up the committee, draft the policy, train the members and guide them through the first inquiry.
Annual Report Duties Under the POSH Act
The IC's annual report
Under Section 21, the IC must prepare a report every calendar year and send it to the employer and the District Officer. The report generally covers the number of complaints received, the number disposed of, the number pending for more than 90 days, the number of awareness programmes and workshops held, and the action taken by the employer.
Even if no complaint was received, the report should still be prepared and filed with a zero or nil entry. Many states expect it early in the following year, often by the end of January, so check the instructions of your District Officer.
The employer's duty to report
Section 22 requires the employer to mention the number of complaints and their disposal in its own annual report. If the organisation does not prepare an annual report, it must inform the District Officer directly.
New: Board's Report disclosure for companies
The Ministry of Corporate Affairs amended the Companies (Accounts) Rules in 2025, and the change took effect on 14 July 2025. A company's Board's Report must now state, among other things, the number of sexual harassment complaints received during the year, how many were disposed of and how many were pending for more than 90 days. A wrong or missing statement can attract penalties under the Companies Act. Companies should coordinate between the IC, HR and the company secretary so that the numbers match.
SHe-Box registration
The government's SHe-Box portal is meant to track complaints and compliance. Many District Officers have asked workplaces to register their ICs on it, and the Supreme Court has also pushed states to improve implementation across districts. Check what your District Officer requires.
Penalties for Not Following the POSH Act
•        A fine of up to Rs 50,000 for failing to constitute the IC or to follow the Act.
•        For repeat violations, a higher penalty, and the possible cancellation of the licence or registration needed to run the business.
•        For companies, additional penalties under the Companies Act for wrong or missing disclosures in the Board's Report.
•        Court cases, bad publicity and loss of trust among staff, which can cost far more than any fine.
Special Situations Employers Should Plan For
Remote and hybrid teams
Harassment on video calls, messaging apps or social media is still workplace harassment if it is connected to work. Your policy and training should say this clearly.
Complaints against senior people
If the person accused is a senior manager or a director, the IC must remain independent. If the complaint is against the employer himself or herself, the matter generally goes to the Local Committee.
Retaliation
An employer must not punish, sideline or fire a person for making a complaint or for helping in an inquiry. Retaliation can create a second, bigger problem.
Contract workers and third-party staff
People supplied by an agency, as well as visitors, can face harassment at your premises. Make sure that your policy, notices and complaint process also reach them, and that agency contracts address this.
Real-Life Style Example 1: The Startup with a Policy but No Training
A growing tech startup in Gurgaon had a POSH policy in its HR folder and an IC with five members. But nobody had trained the staff, and many employees did not know the committee existed. When a junior employee faced repeated inappropriate comments from a team lead, she did not know whom to approach and kept quiet for months.
When the matter finally came out, the company had to run an inquiry under pressure. The founders realised that a policy on paper was not enough. They started annual training, put the IC members' details on the notice board and the intranet, and added a short POSH module to every induction. Complaints did not increase, but trust did.
Real-Life Style Example 2: The Factory That Filed No Report
A manufacturing company with about 60 employees had formed an IC years ago, but the external member had left and was never replaced. No annual report was filed, because the HR head believed that it was only needed if there was a complaint.
During a routine review by a consultant, the gaps came to light: an incomplete committee, no training record and no report filed with the District Officer. The company appointed a new external member, held a training session, prepared the pending reports with nil entries and set a yearly calendar for compliance. Fixing it before an inspection saved the company from penalties.
Common Mistakes Employers Make
•        Not forming an IC, or forming one without an external member.
•        Keeping a policy in a file, without sharing it or training staff.
•        Thinking that no complaints means no report is needed.
•        Letting the IC lapse after members leave and not replacing them.
•        Handling complaints informally, through HR or the manager, instead of the IC process.
•        Breaching confidentiality, or letting the accused person influence the inquiry.
•        Retaliating against the complainant or witnesses.
•        Not matching the numbers in the IC's report with those in the Board's Report.
•        Ignoring contract staff and visitors in the policy and training.
A Quick POSH Compliance Checklist for Employers
•        Is the Internal Committee properly formed, with a senior woman as Presiding Officer and an external member?
•        Are the members' names and contact details displayed and shared with all staff?
•        Do you have a written POSH policy that is updated and shared?
•        Have all employees and IC members been trained in the last 12 months, with records kept?
•        Has the IC's annual report been prepared and sent to the District Officer?
•        Does the company's Board's Report include the required POSH details?
•        Have you checked the SHe-Box requirements for your district?
•        Do you have a clear process to protect complainants from retaliation?
Frequently Asked Questions (FAQs)
1. Who must set up an Internal Committee under the POSH Act?
Every workplace with 10 or more employees must set up an Internal Committee. Workplaces with fewer than 10 employees fall under the Local Committee set up by the District Officer.
2. Who should be on the Internal Committee?
A senior woman employee as Presiding Officer, at least two other employees committed to women's causes or with legal or social work knowledge, and one external member from an NGO or a person familiar with the issues. At least half of the members should be women.
3. Is POSH training mandatory for employers?
Yes. The Act requires employers to organise awareness programmes and workshops at regular intervals, and to give orientation to the members of the Internal Committee.
4. How often should POSH training be conducted?
The law says at regular intervals. A good practice is once a year for all staff, at induction for new joiners, and regular refreshers for the Internal Committee members.
5. What should a POSH policy contain?
It should define sexual harassment, explain how to complain, set out the inquiry process, promise confidentiality and protection from retaliation, and list the possible consequences for violations.
6. What is the time limit for making a complaint?
A complaint should be made in writing within three months of the incident, or the last incident in a series. The committee may extend the time by another three months for sufficient reasons.
7. How long does the Internal Committee have to complete the inquiry?
The inquiry should be completed within 90 days. The committee sends its report to the employer within 10 days, and the employer must act within 60 days.
8. Do we have to file an annual report if there were no complaints?
Yes. The Internal Committee should still prepare an annual report with nil entries and send it to the employer and the District Officer, and the employer should also report as required.
9. What must a company disclose in the Board's Report about POSH?
Since 14 July 2025, the Board's Report must state the number of sexual harassment complaints received, disposed of and pending for more than 90 days during the year, along with other required details. Check the latest rule with your company secretary.
10. What is the penalty for not complying with the POSH Act?
The fine can go up to Rs 50,000. For a repeat offence, the penalty can be doubled, and the licence or registration of the business can be cancelled. Companies may face additional penalties for wrong disclosures.
11. Does the POSH Act apply to remote work and contract workers?
Yes, in many situations. Harassment connected to work through video calls, messages or social media can fall under the Act, and the protection can also extend to contract staff and others who work at the premises.
12. Can an employer settle a harassment complaint informally?
No. Complaints should go through the Internal Committee process. An informal settlement through HR or the manager can break confidentiality, harm the complainant and create legal risk for the employer.
Final Thoughts
The law is not meant to burden employers. It is meant to make sure that every woman can work without fear and that every complaint is handled fairly. A properly formed committee, a clear policy, regular training and timely reports protect your people and your business. They also show that you take your duties seriously.
If you want to set up an Internal Committee, draft a policy, run training or check whether your reports are in order, speak to a team that knows the POSH act inside out and can guide you in plain, practical language. Reach out today and make your workplace safer and fully compliant.
 
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