PoSH Act basics for small companies

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, usually called the PoSH Act, applies to virtually every workplace in India, not only large companies. Small companies often assume it kicks in at some distant headcount; it does not. Here is what the law actually asks of you, stated plainly.

Who the Act covers

The Act protects women at the workplace, and "workplace" is defined broadly: the office itself, client sites, off-sites, and travel undertaken for work. It covers employees on any basis, including contract staff, interns and visitors in many situations. There is no minimum company size for the Act to apply; the ten-employee threshold that people half-remember relates to the committee requirement, not to the Act itself.

When an Internal Committee is required

• Ten or more employees: every employer with ten or more workers at a workplace must constitute an Internal Committee (IC) to receive and inquire into complaints. Count all workers, not only permanent staff.
• Fewer than ten employees: an IC is not mandatory. Complaints instead go to the Local Committee (LC) constituted by the District Officer in each district. The LC also handles complaints against the employer themselves, whatever the company size.

If you are at eight employees and hiring, set up the IC now rather than discovering the obligation during a complaint.

IC composition basics

The Act specifies the committee's shape:

• A Presiding Officer who is a senior-level woman employee. If none is available at that workplace, one can be drawn from another office or unit of the organisation.
• At least two members from among employees, preferably with experience in social work, legal knowledge or commitment to the cause of women.
• One external member from an NGO or association working on women's issues, or a person familiar with issues relating to sexual harassment.
• At least half the members must be women.
• Members serve terms of up to three years, and the external member is entitled to fees as prescribed.

Small companies most often stumble on the external member. Budget for it and appoint a real one; an IC without the external member is not properly constituted, and its findings can be challenged on that ground alone.

Complaint process and timelines

The Act lays out a defined sequence with time limits:

1. A complaint is to be filed in writing, generally within three months of the incident (extendable by the committee for recorded reasons).
2. Before inquiry, the complainant may request conciliation, though a monetary settlement cannot be the basis of it.
3. The inquiry is to be completed within ninety days.
4. The committee's report goes to the employer within ten days of completing the inquiry.
5. The employer is to act on the recommendations within sixty days.
6. Interim reliefs during inquiry can include transfer of the complainant or respondent, or leave to the complainant beyond her normal entitlement.

Confidentiality is a statutory duty: the identity of parties, witnesses and proceedings must not be published or disclosed, with penalties for breach.

Employer duties beyond the committee

Constituting the IC is the start, not the whole obligation. Employers must also:

• Frame and display a policy against sexual harassment, and display the consequences of harassment and the IC's composition at the workplace.
• Conduct awareness and orientation programmes for employees and IC members at regular intervals.
• Assist the committee in conducting inquiries and act on its recommendations.
• File an annual report of complaints received and disposed of, and reflect the required details in filings where applicable, such as the number of PoSH complaints in the board's report for companies covered by that requirement.
• Treat non-compliance seriously: monetary penalty applies, and repeat non-compliance can risk cancellation of licences or registrations.

Making it real in a small company

Practical steps that fit a 15-person company: appoint the IC and publish names and contact details where everyone sees them, run a short annual awareness session, include PoSH acknowledgement in onboarding, and give employees a private channel to raise concerns rather than relying on hallway courage. A confidential reporting channel, such as the grievance tools in culture features, lowers the cost of speaking up; the IC process itself then follows the Act. Policy templates and display-poster checklists are in our knowledge base.

The Act is not paperwork for its own sake. A properly constituted committee and a visible policy change what people believe will happen if they complain, and that belief is the whole point.

This article summarises provisions of the PoSH Act 2013 in general terms and is not legal advice. For committee constitution, inquiries or specific complaints, consult a qualified professional.