POSH Compliance Checklist 2025: Is Your Company Ready?

Introduction

Let us talk about something really important for workplaces in India: the “POSH” Act. You might know it as the Prevention of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. It is a landmark law, a true game-changer, designed to make sure every woman feels safe, respected, and included at work, no matter where she is. As we look ahead to 2025, it is not just about ticking boxes and following the basic rules of this Act. It is also significant to get ready for some recent updates that are going to make companies even more accountable and transparent. This article is your go-to guide, a deep dive into the ever-changing world of POSH compliance. We will give you practical tips and insights to help your organisation be fully prepared and, more importantly, to build a culture where sexual harassment simply is not tolerated.

Understanding the Act and Building a Safe Foundation

The POSH Act has a big mission, and it has a few key parts to it. First off, it wants to make everyone aware of sexual harassment, set up ways to stop it before it even starts, and then, if something does happen, provide a fair and private way for women to get help. Think of it as a shield, protecting a woman’s basic rights to be treated equally, with dignity, and to work in an environment where harassment is a non-issue.

This law casts a wide net. It applies to pretty much every workplace you can imagine, whether it’s a big public company, a small private business, or even an unorganised sector. And it is not just for full-time employees; it covers temporary staff, contract workers, interns, visitors, clients, customers, and yes, even domestic workers. So, its reach is truly extensive.

One of the most important things the Act requires is for organisations with ten (10) or more employees to set up an Internal Committee (IC), sometimes called an Internal Complaints Committee (ICC). If you are a smaller outfit with fewer than ten employees, or if the complaint is against the employer themselves, then a Local Complaints Committee (LCC) steps in. These are set up at the District Level by a designated District Officer.

But the POSH Act is not just about having a committee to handle complaints. It is much more proactive than that. It is about creating a whole new culture within organisations. That is why you will hear the phrase “prevention, prohibition, and redressal” constantly throughout the Act. It is a legal push for a cultural shift, not just a reactive measure. The fact that “awareness programs” and “proactive measures” are mandatory right from the start shows that the law isn’t just about legal consequences; it’s about fostering real change.

And here is another key point: 

the definition of “workplace” is broad. It includes any place an employee visits during their work, which means an employer’s responsibilities go way beyond the traditional office walls. This comprehensive approach means that simply having an IC is not enough; organisations are legally and ethically bound to actively create a respectful and safe environment. Prevention needs to be a continuous and natural part of the organisational culture. This fundamentally changes the focus from just reacting to incidents to actively building a secure and fair working environment.

What Exactly is Sexual Harassment and “Workplace”?

The POSH Act is pretty clear about what counts as sexual harassment. It covers any unwelcome actions or behaviours, whether they are obvious or implied. These include:

• Physical contact and advances.
• Asking for or demanding sexual favours.
• Making sexually suggestive comments.
• Showing pornography.
• Any other unwelcome physical, verbal, or non-verbal behaviour of a sexual nature.

Beyond these clear-cut actions, sexual harassment can also show up as unspoken or direct promises or threats about job treatment, messing with someone’s work, or creating a scary, offensive, or hostile work environment.

As for “workplace,” the Act’s definition is really broad, going way beyond just the physical office. It includes any place an employee goes during their job, even transportation provided by the employer for those trips. This wide definition means that an organisation’s POSH policy and training programs need to consider all sorts of work setups, like working from home, off-site meetings, business travel, and even company events. This flexible legal framework is designed to fit modern work structures, making companies responsible for their liabilities even outside traditional office spaces.

Key Definitions of Sexual Harassment

Category of Conduct	Specific Examples (whether directly or by implication)	Impact/Context
Physical	Physical contact and advances	Unwelcome
Verbal	Demand or request for sexual favours	Unwelcome
	Sexually coloured remarks	Unwelcome
Non-Verbal	Showing pornography	Unwelcome
	Any other unwelcome physical, verbal or non-verbal conduct of a sexual nature	Unwelcome
Environmental	Implicit or explicit promise of preferential treatment in employment	Creates a coercive environment
	Implicit or explicit threat of adverse treatment in employment	Creates a coercive environment
	Implicit or explicit threat regarding current or future employment status	Creates a coercive environment
	Interference with work	Creates an intimidating, offensive, or hostile work environment
	Creation of an intimidating, offensive, or hostile work environment	Creates an intimidating, offensive, or hostile work environment

Core Compliance Requirements

(A) The Internal Committee (IC/ ICC)

One of the significant elements of the POSH Act is the requirement for every organisation with ten (10) or more employees to set up an Internal Complaints Committee (ICC). Think of it as a dedicated team, formally established in writing, ready to handle any concerns. And here is a crucial detail: if your organisation has multiple offices or administrative units, each one needs its own independent IC. This ensures that help and support are always close at hand, no matter where your employees are located.

This ICC is not just a token gesture; it is a carefully constructed body. It needs to have at least four members, and here is a really important part: at least half of them must be women. This ensures a balanced and empathetic approach to sensitive issues. 

The following is the composition of this committee:

• The Presiding Officer: This role is always filled by a woman employee who holds a senior position within your workplace. If, for some reason, there is not a senior woman available in that specific unit, the Presiding Officer can be nominated from other offices, administrative units, or even different departments or organisations that fall under the same employer.
• Employee Members: You will need at least two (02) members from your own team. The Act suggests picking individuals who are passionate about supporting women, have experience in social work, or possess a good grasp of legal matters.
• The External Member: To keep things fair and unbiased, one member needs to come from outside your organisation. This could be someone from a non-governmental organisation (NGO) that focuses on women’s issues, a legal expert, or anyone who clearly understands sexual harassment issues. This external member even gets a daily allowance of Rs. 200 for their time during proceedings, plus their travel costs are reimbursed.

These dedicated ICC members serve for a maximum of three years from the day of their appointment. After that, it is up to the employer to find their replacements. 

(B) Developing a POSH Policy

The formulation and widespread dissemination of a POSH policy within the organisation is mandatory for every employer under Section 19 of the POSH Act and Rule 13 of the POSH Rules. This policy, which may take the form of a charter, resolution, or declaration, must explicitly prohibit, prevent, and provide for the redressal of sexual harassment at the workplace. Its core purpose is to promote gender-sensitive safe spaces and actively remove underlying factors that contribute to a hostile work environment for women. A comprehensive POSH policy should commence with a clear statement affirming the company’s commitment to enhancing a healthy work environment and its unwavering zero-tolerance stance against any form of sexual harassment of women. The policy must precisely define key terms in alignment with the Act’s provisions, including “sexual harassment,” “aggrieved woman” (which can encompass employees, customers, clients, or visitors), “complainant,” “respondent,” “workplace,” “employee,” and “employer”. 

(C) Implementing Effective Awareness and Training Programs

The Act mandates that employers organise regular workshops and awareness programs. These programs ensure that all employees understand the legal definition of sexual harassment, their rights, and the steps to prevent and address it. The primary objectives of these programs include:

• Educating Employees: Informing all employees about the provisions of the POSH Act, their rights, and the procedures for reporting complaints. This helps clarify what constitutes unacceptable behaviour, addressing common misunderstandings and fears of retaliation.
• Training IC Members: Ensuring that members of the Internal Committee are thoroughly familiarised with their duties and the procedures for conducting inquiries in accordance with the Act. This includes understanding their roles, responsibilities, the legal framework, and how to maintain confidentiality and impartiality.
• Promoting Proactive Prevention: Emphasising strategies for averting harassment and empowering employees to identify, address, and report inappropriate behaviour.

While the Act does not specify a precise frequency, it is recommended to conduct these training sessions at least twice a year, with more frequent sessions advisable for new hires or when there are changes in ICC membership.

(D) Establishing a Fair and Confidential Complaint Redressal Mechanism

A confidential mechanism for handling complaints is central to effective POSH compliance. This mechanism must ensure that aggrieved women have a clear and accessible way to file complaints and that these complaints are addressed with fairness, impartiality, and strict confidentiality. 

(E) Adhering to Annual Reporting and Disclosure Obligations

Under Section 21 of the POSH Act, the Internal Complaints Committee (ICC) or the Local Committee (LC), as the case may be, is required to prepare an annual report and submit it to the employer and the District Officer. This report serves as a crucial tool for monitoring compliance and the effectiveness of the internal redressal mechanism.

Rule 14 of the POSH Rules further specifies the contents of this annual report. The report must include the following details for the calendar year:

• Number of sexual harassment complaints received.
• Number of complaints disposed of.
• Number of cases pending for more than 90 days.
• The number of workshops or awareness programs is conducted to sensitise employees.
• The nature of the action taken by the employer or District Officer.

The Chairperson of the ICC is responsible for compiling this report and submitting it to the employer. The employer, in turn, must include this information in its own annual report, as mandated by Section 22 of the POSH Act. This ensures that the organisation’s stakeholders are informed about the measures taken to prevent and address sexual harassment.

The Annual Report is typically submitted to the District Officer by the end of the calendar year (31st December) or within the first quarter of the following year (Jan–March), depending on state notifications or employer directives, since the POSH Act does not mandate a fixed submission timeline.

POSH Readiness Checklist 2025: Is Your Company Prepared?

To ensure comprehensive POSH compliance and readiness for 2025, organizations should conduct a thorough self-assessment against the following key areas:

• Internal Committee (IC/ICC) Establishment:

• Is an ICC constituted in every administrative unit or office with 10 or more employees?
• Does the ICC meet the mandatory composition requirements (senior woman Presiding Officer, at least two employee members, one external member)?
• Is at least 50% of the ICC membership comprised of women?
• Are ICC members appointed for a maximum tenure of three years, with timely replacements?
• Are ICC members adequately trained on their roles, responsibilities, and the principles of natural justice for conducting inquiries?
• POSH Policy Development and Dissemination:

• Is a comprehensive Anti-Sexual Harassment Policy formulated and widely disseminated throughout the organization?
• Does the policy clearly define sexual harassment, “workplace,” “aggrieved woman,” and other key terms as per the Act?
• Does the policy outline the complaint filing procedure, including timelines, interim relief measures, and confidentiality safeguards?
• Are the penal consequences of sexual harassment prominently displayed at the workplace?
• Does the policy include provisions for addressing malicious complaints?
• Is the policy reviewed and updated regularly to reflect legal amendments and best practices?
• Awareness and Training Programs:

• Are regular awareness programs and workshops conducted for all employees to educate them about the POSH Act, their rights, and the complaint mechanism?
• Are these training programs engaging, interactive, and culturally sensitive, using real-life scenarios and inclusive language?
• Is specialized training provided to ICC members, managers, and supervisors on handling complaints, investigations, and their legal obligations?
• Are feedback mechanisms in place to assess the effectiveness and continuous improvement of training programs?
• Complaint Redressal Mechanism:

• Is there a clear, accessible, and confidential mechanism for filing complaints (both online and offline)?
• Does the ICC adhere to the prescribed timelines for inquiry (90 days) and report submission (10 days post-inquiry)?
• Are all investigations conducted impartially, adhering to the principles of natural justice, and providing a fair opportunity to be heard for both complainant and respondent?
• Is strict confidentiality maintained throughout the complaint and investigation process?
• Does the employer promptly implement the recommendations of the ICC within 60 days?
• Annual Reporting and Disclosure Obligations (Focus on 2025 Readiness):

• Does the ICC prepare and submit an annual report to the District Officer and the employer within the stipulated timeframe (typically January)?
• Does the annual report include all mandatory data points: number of complaints received, resolved, pending (over 90 days), actions taken, and awareness programs conducted?
• For Board Reports (Effective July 14, 2025): Is the company prepared to disclose the number of sexual harassment complaints received, resolved, and pending over 90 days in its annual Board Report?
• For Board Reports (Effective July 14, 2025): Is the company prepared to report its workforce gender composition (female, male, transgender employees) in its annual Board Report?
• For Board Reports (Effective July 14, 2025): Is the company prepared to affirm compliance with the Maternity Benefit Act 1961 in its annual Board Report?
• Are internal record-keeping systems robust enough to accurately capture and report all required data for both ICC and Board reports?
• Overall Organizational Culture:

• Does the organization actively promote a culture of zero tolerance towards sexual harassment?
• Are leadership and management visibly committed to creating a safe and respectful workplace?
• Are measures in place to protect complainants, witnesses, and ICC members from retaliation?

Conclusion

As 2025 ushers in a more transparent, accountable, and gender-sensitive corporate environment, POSH compliance is no longer just a statutory checklist, it is a strategic necessity. Employers who treat compliance as a one-time formality risk legal penalties, reputational damage, and erosion of employee trust. On the other hand, organisations that embed the principles of prevention, prohibition, and redressal into their core culture will not only meet regulatory requirements but also attract and retain top talent, build stronger teams, and foster long-term growth.

The real question for leadership is not “Are we compliant”? But “Are we committed to creating a workplace where dignity, safety, and equality are non-negotiable”? If your company can confidently answer “yes”, then you are not just POSH compliant; you are future-ready.

YLCC would like to thank Nikunj Arora for his valuable insights into this article.