ICC formation, policy, training

Category: Labour Law Compliance. From ₹7,999. Typical timeline: 7–14 days.

Overview

POSH compliance implements the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, requiring every employer with 10 or more employees to constitute an Internal Committee (IC), adopt a POSH policy, and conduct awareness training so employees know how complaints are received and handled. Kanoons sets up a legally compliant IC, drafts the policy document, and delivers employee and IC-member training so the framework is not just on paper but actually functional if a complaint arises.

Who needs it

• A company setting up its Internal Committee for the first time as headcount crosses 10 employees
• An organisation whose IC has become non-compliant due to member exits or expired tenure
• A business preparing its annual report disclosure on POSH complaints
• A company wanting POSH awareness training as part of onboarding and periodic refreshers

Eligibility

• Any workplace, government or private, with 10 or more employees
• Establishments that have not yet constituted an Internal Committee or whose IC composition has lapsed
• Businesses needing to update their POSH policy or conduct mandatory annual training

Documents required

• List of employees and organisational structure
• Details of proposed IC members (Presiding Officer, employee members, external member)
• Existing POSH policy, if any, for review and update
• Records of any prior complaints handled, if applicable

Process

1. IC constitution — An Internal Committee is constituted with a senior woman employee as Presiding Officer, employee members and a mandatory external member with relevant expertise.
2. Policy drafting — A POSH policy is drafted covering definition of sexual harassment, complaint procedure, timelines and confidentiality.
3. Notification & display — The IC composition and policy are formally notified and displayed as required at the workplace.
4. Training — Awareness training is conducted for all employees and specialised training for IC members on handling complaints and conducting inquiries.
5. Annual reporting setup — A process is set up to compile the mandatory annual report on the number of complaints received and their status.

Government fees

• Government fees: Nil — POSH Act compliance has no government registration fee; it is a mandatory internal compliance obligation

Professional fee

Starts at ₹7,999 depending on organisation size and whether both IC constitution and training are required; covers policy drafting, IC setup guidance and one round of employee/IC training.

Timeline

IC constitution and policy drafting is typically completed in 7–10 working days; scheduling and delivering training sessions can extend the full engagement to 14 working days depending on batch sizes and locations.

Deliverables

• POSH policy document
• Internal Committee constitution order/notification
• Training completion records for employees and IC members
• Annual report template for POSH complaint disclosure

Frequently asked questions

Is POSH compliance mandatory for organisations with fewer than 10 employees?

The formal requirement to constitute an Internal Committee applies once an establishment has 10 or more employees; smaller establishments can instead route complaints to the district-level Local Committee, but adopting a policy is still good practice.

Who must be the external member on the Internal Committee?

The external member must be someone from an NGO or association committed to women's causes, or with relevant experience in dealing with sexual harassment issues, and cannot be an employee of the organisation.

Does POSH compliance need to be disclosed in the company's annual report?

Yes, under the Companies Act framework and the POSH Act itself, companies must disclose the number of complaints received, disposed of and pending in their Board's Report or annual return each year.

Common mistakes

• Not reconstituting the IC when a member's three-year tenure expires or a member exits the organisation
• Appointing an internal employee instead of a genuine external member on the committee
• Treating POSH as a one-time policy document without conducting actual employee training
• Failing to complete a complaint inquiry within the statutory 90-day timeline

Penalties for non-compliance

• Non-constitution of an Internal Committee or non-compliance with the Act can attract a fine of up to ₹50,000 under Section 26 of the POSH Act
• Repeated non-compliance can lead to cancellation or non-renewal of business licenses/registrations in some cases
• Failure to disclose POSH complaint data in the annual report can attract scrutiny and penal action under the Companies Act

Legal references

• Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 — governs constitution of ICs, complaint procedure and employer obligations
• Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Rules, 2013 — prescribe procedural details including inquiry timelines
• Companies Act, 2013 — requires disclosure of POSH compliance status in the Board's Report for companies