POSH Compliance — Internal Committee, Annual Report and Penalties for Employers with 10+ Staff
Quick answer: Under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, every employer must constitute an Internal Committee at each workplace or administrative unit with 10 or more employees: a senior woman employee as Presiding Officer, at least two employee members, one external member from an NGO or with relevant expertise, at least half women, each for a three-year term. Complaints are filed within three months, inquired into within 90 days, and the employer acts on the recommendations within 60 days. The Committee's annual report goes to the employer and the District Officer every calendar year (even a nil report), and companies disclose complaint numbers in the Board's report. Non-compliance costs up to ₹50,000 under Section 26, doubled with possible cancellation of licence or registration on repeat. We constitute the Committee, draft the policy, train staff and file the report.
Last verified 4 October 2026 — rules on this page checked against the current notifications. We update it the day a rule changes.
The obligations, section by section
| Obligation | Rule |
|---|---|
| Internal Committee (IC) | s.4 — at every office or administrative unit with 10 or more employees (contract, interns and trainees count); one IC per unit, not one per company |
| Composition | s.4(2) — Presiding Officer: senior-level woman employee; at least 2 employee members (preferably with legal/social-work background); 1 external member from an NGO or familiar with sexual-harassment issues; at least half women; term 3 years |
| Fewer than 10 employees, or complaint against the employer | s.6 — the District Officer's Local Committee has jurisdiction |
| Policy and awareness | s.19 — written policy, display of penal consequences and IC order at conspicuous places, regular workshops and IC capacity-building |
| Complaint clocks | s.9/11/13 — complaint within 3 months (extendable 3); inquiry completed in 90 days; report to employer in 10 days; employer acts within 60 days |
| Annual report | s.21 — IC reports to employer and District Officer each calendar year (complaints received, disposed, pending over 90 days, workshops held) — file a nil report too; filed in January for the previous year in practice |
| Board's report | s.22 + Companies (Accounts) Rules — statement that the IC is constituted and the complaint numbers (filed, disposed, pending over 90 days) |
| Penalty | s.26 — fine up to ₹50,000 for failing to constitute the IC, act on recommendations or file the report; repeat: double penalty and possible cancellation of licence or registration |
| Online complaint channel | SHe-Box (Ministry of Women and Child Development) — employers register their IC; complaints can be routed to it |
What we do
- IC constitution orders for each unit, external-member empanelment, member training and the three-year calendar
- POSH policy, display notices, annual awareness sessions; complaint-handling SOP that keeps the 90/60-day clocks
- Section 21 annual reports to the District Officer (incl. nil reports), Board-report disclosures with ROC filings, SHe-Box registration
- Pairs with labour-code compliance, Shop Act and factory licence inspections
Client: A Gurugram IT services firm with 180 staff across two floors and a Noida support centre of 35.
Situation: One IC covered 'the company'; the external member was its retained advocate; no report had ever gone to a District Officer.
Approach: Constituted separate ICs for Gurugram and Noida with NGO-affiliated external members, trained both committees, adopted a policy, and filed the Section 21 reports (nil) with both District Officers plus the Board-report line.
Outcome: Labour-inspection query closed on documents; Series-A diligence item cleared.
Client identity and certain details have been changed or withheld to protect confidentiality. Outcomes depend on individual facts and are not a guarantee of results.
Talk to us before you file anything
Frequently asked questions
Is a POSH Internal Committee mandatory for 10 employees?
Yes — Section 4 requires an Internal Committee at every workplace or administrative unit with 10 or more employees, counting contract staff, interns and trainees.
Who must be on the Internal Committee?
A senior woman employee as Presiding Officer, at least two employee members, and one external member from an NGO or with expertise in sexual-harassment matters; at least half the members must be women; the term is three years.
Do we need a separate committee for each office?
Yes — one IC per office or administrative unit that has 10 or more employees.
What is the penalty for not having a POSH committee?
Up to ₹50,000 under Section 26; a repeat offence attracts double the penalty and can lead to cancellation of the business licence or registration.
When is the POSH annual report due?
The IC reports to the employer and the District Officer for each calendar year — in practice filed in January for the previous year — and a nil report is still required.
What happens if we have fewer than 10 employees?
The Act still applies; complaints go to the District Officer's Local Committee under Section 6, which also hears complaints against the employer.
What are the time limits in a complaint?
Complaint within three months of the incident (extendable by three), inquiry completed within 90 days, report to the employer within 10 days, and employer action within 60 days.
Does a company have to disclose POSH matters in the Board's report?
Yes — a statement on IC constitution and the number of complaints filed, disposed and pending beyond 90 days, under Section 22 read with the Companies (Accounts) Rules.