POSH compliance checklist for small companies in India
A free guide for founders and HR leads at Indian companies with roughly 10 to 200 people. It covers what the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (the "POSH Act") generally expects from an employer. It's general information, not legal advice. Have a lawyer check your policy and confirm any state-specific requirements, such as portal registration.
Does it apply to you?
The Act applies to almost every workplace in India, whatever the industry and including remote work. If you have 10 or more employees, you must constitute an Internal Committee (IC) at each office or unit. With fewer than 10, complaints go to the district's Local Committee, but you still have duties to prevent harassment. "Employees" is defined broadly and generally includes trainees, interns, temporary and contract staff.
The checklist
Write and adopt a POSH policy. It should cover the definition of sexual harassment, how to complain, the IC's process and timelines, confidentiality, protection against retaliation, and the consequences.
Constitute the Internal Committee by a written order, which should be dated and signed:
Presiding Officer: a woman employed at a senior level.
At least two employee members, preferably committed to the cause of women or with legal or social-work experience.
One external member from an NGO or association committed to the cause of women, or a person familiar with sexual-harassment issues.
At least half of the members must be women. Members serve for up to three years.
Display the consequences of sexual harassment and the IC order, with members' names and contacts, at a conspicuous place in each office, and on your intranet or HRMS for remote staff.
Tell everyone how to complain: in writing, to the IC, generally within 3 months of the incident (extendable by another 3 months for good reason).
Know the process timelines: conciliation only if the complainant asks for it, and never with a monetary settlement; inquiry completed within 90 days; report within 10 days of completing the inquiry; employer acts on it within 60 days; appeal within 90 days.
Interim relief: be ready to act on IC recommendations during an inquiry. These include transferring either party, granting leave, or stopping the respondent from assessing the complainant's work.
Run awareness sessions for employees, and orientation for IC members, at regular intervals.
File the annual report. The IC prepares an annual report, generally covering the number of complaints received and resolved and the workshops held. The employer includes POSH information in its own annual reporting and sends the report to the district officer as required. Check your state's format and deadline.
Keep it confidential. Complaint details, identities, proceedings and action taken must not be published.
Review annually: refresh IC membership when people leave, re-display updated contacts, and update the policy.
Common gaps in small-company POSH set-ups
No external member, or an external member with no real connection to the issues.
No senior woman available as Presiding Officer, and no nomination from another office.
A policy that exists but was never displayed, or that remote staff were never told about.
The founder sitting on the IC and hearing complaints about their own team.
Treating "couldn't prove it" as a "false complaint". The Act distinguishes the two, and penalising complainants who simply lack proof deters reporting.
Penalty for non-compliance: generally a fine of up to ₹50,000, with heavier consequences for repeat contravention.
Templates
Our employee handbook template (₹1,499) includes a full POSH policy written to this checklist, with a complaint form and an IC contact list, alongside 15 other policies. With the custom handbook (₹6,999), we write it with your IC members, offices and policies filled in.