Employers guide to ensure complianceWith sexual harassment enquiry in the workplace
- By Suresh Kumar, Aran Law Firm
- Tamil Nadu, India
- 12 min read
- Updated June 2026
KEY FACTS — POSH Act Compliance for Employers
- Any employer with 10 or more employees must constitute an Internal Committee (IC) under Section 4 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
- A written complaint of sexual harassment must be filed within three months of the incident, extendable by another three months if the Internal Committee is satisfied with the reasons for delay, under Section 9.
- The Internal Committee must complete its inquiry within 90 days of receiving the complaint, under Section 11.
- The Internal Committee must submit its inquiry report within 10 days of completing the inquiry, and the employer must act on its recommendations within 60 days.
- Failure to constitute an Internal Committee, or other non-compliance, attracts a fine of up to ₹50,000 under Section 26, with higher penalties or cancellation of business licence for repeat violations.
- Companies with fewer than 10 employees, or complaints against the employer himself, must be routed to the Local Committee constituted by the District Officer, not the Internal Committee.
Under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (the POSH Act), every employer with 10 or more employees must constitute an Internal Committee, display the law’s provisions in the workplace, and resolve every complaint within fixed statutory timelines. Falling short on any of these duties exposes an organisation to penalties under Section 26 of the Act, and to the reputational and litigation risk of an unresolved harassment dispute.
For Chennai-based companies working through compliance obligations or facing a workplace dispute, our civil litigation lawyers in Chennai advise on both the POSH framework and any resulting employment or civil litigation.
What Does the POSH Act Require Employers To Do?
Section 19 of the POSH Act sets out the employer’s core duties. An employer must provide a safe working environment, display the consequences of sexual harassment at a prominent place in the workplace, organise regular awareness and sensitisation programmes, and provide the Internal Committee with the facilities it needs to conduct an inquiry. An employer must also assist the Internal Committee in securing the attendance of the respondent and witnesses, treat sexual harassment as misconduct under applicable service rules, and monitor the timely submission of the Committee’s report. These duties apply regardless of company size, though the obligation to constitute an Internal Committee specifically applies once the workforce reaches 10 employees.
What Counts as Sexual Harassment Under the POSH Act?
Section 3 of the Act defines sexual harassment broadly, covering unwelcome physical contact and advances, a demand or request for sexual favours, sexually coloured remarks, showing pornography, and any other unwelcome physical, verbal, or non-verbal conduct of a sexual nature. The conduct does not need to be directed at one specific individual to qualify — language or imagery that creates a hostile or intimidating work environment for any employee falls within the Act.
Physical harassment:
Includes unwanted touching, assault, or physical gestures that make an employee uncomfortable, even where the contact itself is brief or appears minor.
Verbal harassment
Includes sexually suggestive comments, jokes, or remarks, whether or not they are aimed directly at the complainant.
Non-verbal harassment
Includes leering, displaying sexually explicit material, or circulating suggestive images or messages through email, WhatsApp, or other electronic channels — all of which fall within the scope of the Act.
Quid pro quo harassment
Occurs when a person in a position of authority demands sexual favours in exchange for a job benefit such as a promotion, increment, or continued employment. This is treated as one of the more serious categories of violation under the Act.
Does My Company Need an Internal Committee?
Any employer with 10 or more employees, in any sector, must constitute an Internal Committee at every office or branch where the workforce meets that threshold, under Section 4(1). Where a company has fewer than 10 employees, or where the complaint is against the employer himself, the complaint must instead be filed with the Local Committee constituted by the District Officer under Section 6 — the Internal Committee has no jurisdiction in either situation.
How Should the Internal Committee Be Constituted?
The Internal Committee must have a Presiding Officer who is a woman employed at a senior level, at least two other employee members with a demonstrated commitment to women’s causes or experience in social work or legal knowledge, and one external member from an NGO or association working on women’s issues. At least half of the nominated members must be women. Getting this composition wrong — for instance, omitting the external member, or having a Presiding Officer who is not senior enough — can expose an otherwise well-intentioned inquiry to a legal challenge on procedural grounds.
What Is the Procedure for Filing and Resolving a Complaint?
A complainant has three months from the date of the incident to file a written complaint, extendable by another three months where the Internal Committee is satisfied that circumstances prevented an earlier filing, under Section 9. Before proceeding to a formal inquiry, the Committee may attempt conciliation between the parties at the complainant’s request, though no monetary settlement can form the basis of conciliation, under Section 10. If conciliation does not apply or fails, the Committee must conduct an inquiry, hearing both parties and following the principles of natural justice, and must complete that inquiry within 90 days under Section 11. During the pendency of the inquiry, the complainant may request interim relief such as transfer of either party, leave of up to three months, or an order restraining the respondent from supervising or reporting on the complainant’s work, under Section 12.
What Happens After the Inquiry — Report and Employer's Action?
On completing the inquiry, the Internal Committee must submit its report with findings and recommendations within 10 days. The employer is then required to act on those recommendations which may include disciplinary action against the respondent within 60 days of receiving the report. The Committee finds that the complaint was false or made with malicious intent, supported by clear evidence of fabrication rather than simply an inability to prove the allegation, it may recommend action against the complainant under Section 14. This provision is applied narrowly by Committees and courts, since the inability to prove a complaint is not, on its own, evidence of malice.
What Records and Annual Reports Must Employers Maintain?
The Internal Committee must maintain a complete record of every complaint received, the inquiry conducted, and the outcome reached, and must submit an annual report to the employer and to the District Officer detailing the number of cases filed, resolved, and pending during the year, under Section 21. Employers are expected to incorporate this information into their own statutory or annual filings where applicable. Maintaining this documentation properly is often the single biggest gap we see in smaller and mid-sized companies in Chennai going through their first POSH Act compliance review.
What Are the Penalties for Non-Compliance?
An employer who fails to constitute an Internal Committee, fails to act on the Committee’s recommendations, or otherwise contravenes the Act faces a fine of up to ₹50,000 under Section 26.A repeat violation can attract a higher penalty, and in some cases the cancellation or non-renewal of the licence or registration required to carry on business.Beyond the statutory fine, an employer found to have ignored its POSH Act obligations is also exposed to writ petitions, labour court proceedings, and reputational harm that typically outweighs the penalty itself.
How Can Employers Build a Genuinely Compliant Workplace, Not Just a Compliant Policy?
A written policy and a properly constituted Internal Committee are the legal minimum, not the end goal. Employers should run periodic training for all staff, separate and more detailed training for Internal Committee members on conducting a fair inquiry and maintaining confidentiality, and visible leadership commitment to acting on every complaint without exception. The Supreme Court’s guidelines in Vishaka v. State of Rajasthan (1997), which preceded and shaped the POSH Act itself, remain a useful reference point for employers on the underlying principle: the duty to provide a safe working environment for women rests squarely on the employer, not on the employee to simply tolerate or avoid harassment.
At Aran Law, we work with companies in Chennai on drafting POSH Act–compliant policies, reviewing Internal Committee composition, and advising through the inquiry process where a complaint has already been filed — searches for POSH Act compliance Chennai and Internal Committee formation Tamil Nadu are increasingly common among employers reviewing their HR practices for the first time.
FAQ
1.Does every company need a sexual harassment Internal Committee?
Any employer with 10 or more employees must set up an Internal Committee under Section 4 of the POSH Act, 2013, regardless of the nature of the business or sector.
2.How long does an employee have to file a sexual harassment complaint?
A complaint must be made in writing within three months of the incident. The Internal Committee may extend this by another three months for valid reasons.
3.How long does the Internal Committee have to complete an inquiry?
The Internal Committee must complete its inquiry within 90 days of receiving the complaint, after giving both the complainant and respondent a fair opportunity to be heard.
4.What happens if a company fails to set up an Internal Committee?
Non-compliance, including failing to constitute an Internal Committee, can attract a fine of up to ₹50,000 under Section 26, with higher penalties for repeat violations.
5.Can a complaint be filed if the company has no Internal Committee or the complaint is against the employer?
Yes. Such complaints go to the Local Committee constituted by the District Officer, which has jurisdiction wherever no Internal Committee applies.
