Workforce

POSH Compliance Checklist for Indian Startups & SMBs (2026)

A step-by-step checklist to constitute your Internal Committee, draft a compliant POSH policy, train staff, and file the mandatory annual report.

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POSH Compliance Checklist for Indian Startups & SMBs (2026)

Under the Sexual Harassment of Women at Workplace Act, 2013 (POSH Act), compliance is not satisfied by adding a two-paragraph anti-harassment clause to an onboarding slide deck. The statute establishes specific procedural duties that trigger the moment your organization employs 10 workers.

The six-step POSH compliance checklist

A nil report is still legally mandatory. Filing zero complaints proves your committee functioned; filing nothing proves your company failed to comply with Section 21.

  • Step 1: Adopt a Formal POSH Policy — Formulate and circulate a clear, written policy defining what constitutes sexual harassment, the complaint submission process, interim reliefs, and inquiry procedures.
  • Step 2: Constitute the Internal Committee by Written Order — Issue a formal corporate order naming the Presiding Officer, member employees, and the mandatory external member under Section 4.
  • Step 3: Appoint an Independent External Member — Contract an experienced external member from an NGO or specialized legal practice to ensure impartial inquiry proceedings.
  • Step 4: Prominently Display Statutory Notices — Display notices outlining the penal consequences of sexual harassment and the contact details of the IC members at all workplace locations and internal portals.
  • Step 5: Conduct Annual Sensitization Workshops — Host mandatory training sessions for all employees and specialized orientation programs for IC members on evidence handling and inquiry protocols.
  • Step 6: Submit the Section 21 Annual Report — Prepare and file the annual compliance return with the District Officer before 31st January every year, detailing complaints received, investigated, and pending.

Statutory inquiry timelines

When an inquiry is initiated, Section 11 of the POSH Act requires the investigation to be completed within 90 days. The IC must submit its report within 10 days of completion, and the employer must act on recommendations within 60 days. Deploy our verified compliance set: download the POSH policy template, issue your Internal Committee constitution order, and prepare your year-end filing with our POSH annual report template. Track your 10-employee headcount threshold with our employee threshold checker and review our analyses of POSH Act Section 4 and POSH Act Section 26 penalties.

Common questions

What are the core requirements of POSH compliance in India?

Under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013: (1) Formulate and publish a comprehensive POSH policy; (2) Constitute an Internal Committee (IC) by written order if employing 10 or more workers; (3) Appoint an independent external member to the IC; (4) Display penal consequences of harassment in the workplace; (5) Conduct regular orientation and sensitization workshops; and (6) File an annual report under Section 21 with the District Officer.

Is a POSH committee mandatory for remote and hybrid teams?

Yes. The definition of 'workplace' under Section 2(o) includes any place visited by the employee arising out of or during the course of employment, including virtual workspaces, digital communication channels, remote home offices, and company offsites.

Who must be on the POSH Internal Committee?

Section 4 mandates: a Presiding Officer who is a woman employed at a senior level; at least two employee members committed to women's welfare; and one external member from an NGO or association working on women's rights or familiar with sexual harassment law. At least 50% of the committee must be women.

What is the penalty for failing to comply with POSH provisions?

Section 26 provides a fine up to ₹50,000 for a first offence. A second contravention doubles the fine and can result in cancellation or revocation of business licenses and operational registrations.

Related reading

  • When Is EPF Registration Mandatory in India? Headcount and Rules — The 20-employee threshold under the Code on Social Security, which replaced the EPF Act, who counts as an employee, the wage ceiling, and the cost of depositing late.
  • Full and final settlement: what you owe a departing employee, and when — Two working days for wages, thirty for gratuity. The deadlines are statutory, and "we settle at the end of the quarter" is not one of them.
  • POSH compliance at 10 employees: what actually becomes mandatory — Not a policy you write once and file away. A constituted committee, a real annual report, and a headcount nobody is tracking.

Written by Swaraj Layek

Published 14 September 2026. Founder & CEO at VidhiSar. I have watched four companies pay for the same mistake, and it was never the mistake anyone expected. VidhiSar is software, not a law firm: every answer names the section it relies on so you can check it, and anything turning on your specific facts is worth putting to a professional. More about who builds this

Maintained by the VidhiSar Legal Team

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