What is the POSH Act in India? A Complete Guide for Employers

The Prevention of Sexual Harassment at Workplace Act 2013, commonly called the POSH Act, is a law enacted by the Government of India to protect women from sexual harassment at the workplace. It applies to all organisations with 10 or more employees across all sectors — private, public, organised, and unorganised.

The POSH Act applies to every employer in India with 10 or more employees. This includes private companies, startups, NGOs, government organisations, schools, hospitals, and factories. There is no exemption based on industry or company size beyond the 10-employee threshold.

Penalties under the POSH Act include a fine of up to Rs 50,000 for a first offence. Repeat offences can lead to cancellation of the business licence or registration. Courts can also order compensation to the complainant. Beyond legal penalties, non-compliant organisations face significant reputational risk.

Employers must constitute an Internal Complaints Committee (ICC), formulate and display a sexual harassment policy, conduct regular POSH awareness training for all employees, ensure ICC members are trained, submit an annual report to the district officer, and maintain confidentiality in complaints handling.

The Internal Complaints Committee (ICC) is a mandatory body that every organisation with 10 or more employees must set up. It must have at least four members: a Presiding Officer who is a senior female employee, at least two employees committed to women's causes, and one external member from an NGO or legal background.