The Prevention of Sexual Harassment (PoSH) Act, 2013, is a landmark legislation in India that ensures safe and inclusive work environments, especially for women. But more than a decade after its enactment, non-compliance with PoSH still remains widespread—especially among startups, MSMEs, and even large corporates.
At Wisely Legal, we regularly work with companies across India to implement robust PoSH frameworks. Whether you’re a founder, HR head, or compliance officer, this guide will walk you through everything you need to know about PoSH compliance in 2025—from legal obligations to best practices.
📜 What Is the PoSH Act?
The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013—commonly referred to as the PoSH Act—is a central law enacted to:
- Prevent sexual harassment at workplaces
- Provide redressal mechanisms for complaints
- Promote a safe, respectful, and equitable work environment
It applies to all workplaces in India—including corporates, government bodies, startups, schools, hospitals, NGOs, and even gig-economy platforms.
⚖️ Who Needs to Comply With the PoSH Act?
The PoSH Act is applicable to:
✅ All employers with 10 or more employees (irrespective of gender)
✅ All sectors: IT, manufacturing, service, education, retail, and more
✅ All types of employees: full-time, part-time, interns, gig workers, consultants, domestic help
Even remote/hybrid companies or those operating from co-working spaces must comply with PoSH rules.
🚨 What Constitutes Sexual Harassment?
The Act defines sexual harassment broadly under Section 2(n), and includes:
- Unwelcome physical contact or advances
- Demands or requests for sexual favors
- Sexually colored remarks
- Showing pornography
- Any other unwelcome verbal, non-verbal, or physical conduct of a sexual nature
It may occur between any genders and at any place connected to the workplace—including work trips, off-sites, or virtual meetings.
🧾 Employer’s Legal Responsibilities Under PoSH
Under the PoSH Act, the employer bears the legal duty to ensure prevention, prohibition, and redressal. The key obligations include:
1. Constitute an Internal Committee (IC)
- At least 4 members, with one external member from an NGO or legal background
- Chairperson must be a senior woman employee
- Minimum 50% of the committee must be women
- Reconstitute every 3 years
2. Draft and Circulate PoSH Policy
A comprehensive PoSH Policy must include:
- Definitions, complaint process, timelines
- Duties of employees and employer
- IC’s powers and procedures
This policy must be displayed prominently and shared with all employees.
3. Conduct Annual Training and Awareness
- Mandatory PoSH training for all employees
- Special training for managers and IC members
- Orientation on bystander support, reporting process, and rights
4. File Annual Report with District Officer
Include:
- Number of cases filed, resolved, pending
- IC constitution details
- Steps taken for awareness
Failure to file the report can attract penalties and impact business licensing or funding.
📌 Timelines Under the PoSH Act
Activity | Timeline |
Filing of complaint | Within 3 months of the incident |
Completion of inquiry | Within 90 days of receipt |
Submission of report | Within 10 days of completion |
Employer action on report | Within 60 days of report |
Annual filing with District Officer | By 31st January every year |
🧑⚖️ Internal Committee: Structure & Powers
The Internal Committee (IC) plays a central role in investigating complaints and recommending action.
Composition:
- Presiding Officer: Senior woman employee
- 2 Internal members (committed to women’s cause or with legal/social knowledge)
- 1 External member from an legal background (Lawyer) or working in women related matters
Powers of IC:
- Summon witnesses
- Examine documents
- Maintain confidentiality
- Recommend action (warning, salary cut, termination)
IC recommendations must be implemented by the employer within 60 days.
📊 What Happens If You Don’t Comply With PoSH?
Many companies believe PoSH is optional or only for large firms. This is a legal myth.
Consequences of Non-Compliance:
- Fine up to ₹50,000 under Section 26
- Cancellation of business license or registration
- Disqualification in government tenders
- Negative PR and employee attrition
- Lawsuits under Articles 14, 15, and 21 of the Constitution
In some cases, courts have taken suo motu cognizance and directed State/District Officers to investigate.
✅ PoSH Compliance Checklist
Here’s a quick compliance checklist you can use internally:
☐ PoSH Policy drafted and circulated
☐ Internal Committee constituted & notified
☐ External member appointed (with agreement)
☐ All-employee awareness training conducted
☐ IC training and orientation completed
☐ Complaint mechanism in place (email/portal)
☐ Annual report filed with District Officer
☐ Policy displayed on website/intranet/notice board
Need help ticking all boxes? Wisely Legal can assist end-to-end.
💼 PoSH and Remote Work: What’s New?
With remote and hybrid work being the norm post-pandemic, PoSH compliance has evolved:
- Virtual harassment (inappropriate messages, video call behavior) is actionable
- Virtual IC hearings allowed under Ministry guidelines
- Awareness materials must be emailed or digitally accessible
- Remote workers must also attend PoSH trainings
The workplace is now defined not by location, but by connection to employment duties.
🧠 Real Case Example: What Went Wrong?
Case: A growing Delhi-based fintech startup faced backlash after an employee filed a sexual harassment complaint. The company had no IC, no policy, and no training.
The matter escalated when the complainant approached the District Officer, triggering an official probe. The company was fined, its hiring plans stalled, and the founder issued a public apology.
Lesson: Legal non-compliance in PoSH isn’t just about penalties—it damages brand, employee trust, and investor confidence.
💡 PoSH for Startups and MSMEs
Think your company is too small? Think again.
Even with 10–15 people, your company is legally required to form an IC and train your team. You can’t delay it until you grow.
At Wisely Legal, we help startups with:
- Budget-friendly PoSH kits
- Virtual IC setup and training
- Shared External Committee Member
- Annual compliance tracking
- Remote PoSH policy deployment
👩💼 How Wisely Legal Can Help
Wisely Legal offers end-to-end PoSH compliance services in India for all sectors—IT, edtech, startups, healthcare, hospitality, etc.
Our services include:
✅ Drafting customized PoSH policies
✅ IC constitution & external member onboarding
✅ Employee & IC training (online + offline)
✅ Complaint redressal support
✅ Annual filing assistance
✅ Legal representation in case of escalation
All services are legally compliant with the PoSH Act, 2013, and customized to your industry and workplace culture.
📞 Ready to Make Your Workplace PoSH Compliant?
Don’t wait for a complaint or audit to fix your PoSH framework. Take proactive steps now to create a safer, lawful, and employee-friendly workplace.
Reach out to Wisely Legal for a PoSH compliance audit, custom policy, or IC training today.
👉 Visit: www.WiselyLegal.com
📧 Email: Gazal@wiselylegal.com
📞 Call: +91-9399922911