Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Who must comply
The POSH Act applies to every workplace with 10 or more employees — companies, LLPs, firms, NGOs, anyone. At that headcount you must constitute an Internal Committee (IC) with the prescribed composition (a senior woman as presiding officer, an external member, and others) to receive and inquire into complaints.
The ongoing obligations
Beyond forming the IC, you must have a POSH policy, conduct awareness and IC training, display the penal consequences, handle complaints within set timelines, and file an annual report with the District Officer. Non-compliance can attract a penalty (up to ₹50,000) and, on repetition, cancellation of licences. Confirm current penalty amounts.
A worked example
Example: a startup crossing 10 employees constitutes its IC, rolls out a POSH policy and a short training, and files the annual report each January. A 5-person team isn’t yet covered but often adopts a policy early as good practice. Treating POSH as a tick-box and skipping the IC is a common gap that surfaces in due diligence. Our team can set up your POSH framework.