# POSH Compliance Checklist for Foreign Owned Companies in India

> Source: https://krystal7.com/insights/posh-compliance-foreign-owned-company-india
> Publisher: Krystal7 Consultants (Krystal7 Innovations Private Limited), Gurugram, India
> Author: CA Nandini
> Published: 01 Feb 2026; updated 24 Oct 2026
> Summary: Every Indian office with 10 or more employees needs an Internal Committee with an external member under the POSH Act, 2013, and an annual report.

*Written by CA Nandini Hasija, Krystal7 Consultants. Last updated 23 October 2026.*

## AI Overview Summary

- Every employer with 10 or more employees at an Indian office must constitute an Internal Committee by written order under section 4 of the POSH Act, 2013, at each office or administrative unit.
- The committee needs a senior woman employee as presiding officer, at least two employee members and one external member from an NGO or with relevant expertise. At least half must be women.
- A woman can complain within three months, extendable by three more. The inquiry must finish within 90 days, the report within 10 days and the employer's action within 60 days.
- The committee files an annual report each calendar year with the employer and the District Officer, and the company's board report must disclose complaints received, disposed and pending beyond 90 days.
- Failing to constitute a committee or act on its findings carries a fine of up to INR 50,000 under section 26, doubled on repeat, with possible loss of business licences.

**POSH compliance in India means meeting the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Every employer with 10 or more employees at an office must constitute an Internal Committee under section 4, with an external member. It must adopt a policy, train staff and finish inquiries within 90 days. The committee files an annual report with the District Officer. The fine for failure is up to INR 50,000 under section 26.**

This page covers who the Act protects, the committee, policy and training, complaint timelines, reports, SHe-Box and penalties. It also shows how to adapt a parent's global policy. It ends with a worked complaint timeline and a checklist.

## What is POSH compliance for a foreign owned company in India?

POSH compliance is the set of duties the POSH Act, 2013 and the 2013 Rules place on every employer in India. A foreign owned subsidiary has the same duties as an Indian company. It must constitute an Internal Committee (IC), adopt and publicise a policy, train staff, act on findings within 60 days and report every year. Section 4 names the body the Internal Complaints Committee, and section 2(h) shortens it to Internal Committee.

The Act came into force on 9 Dec 2013 under S.O. 3606(E). The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Rules, 2013 (G.S.R. 769(E)) were notified the same day. We cite the text hosted by the [Delhi High Court](https://delhihighcourt.nic.in/files/announcements/13117258965423eb9a1600.pdf). The Supreme Court's judgment in [Aureliano Fernandes v. State of Goa](https://api.sci.gov.in/supremecourt/2012/21189/21189_2012_17_1501_44461_Judgement_12-May-2023.pdf) of 12 May 2023 is the leading ruling on how committees must work.

The labour codes that started on 21 Nov 2025 did not replace the POSH Act. It sits alongside them. The four codes are covered in our overview of the [new labour codes for foreign owned companies](/insights/new-labour-codes-foreign-owned-companies-india).

Three features surprise foreign parents:

- **A statutory committee, not a hotline.** The IC has the powers of a civil court for summoning, discovery and production of documents under section 11(3). A global ethics team cannot replace it.
- **Fixed deadlines.** The Act sets a 90 day inquiry and a 60 day window for the employer to act.
- **Public reporting.** The IC reports to a government officer every year, and the company's board report discloses complaint numbers.

## Which workplaces and people does the POSH Act cover?

The Act protects any woman who alleges sexual harassment at a workplace, whatever her age and whether or not she is employed there. "Workplace" under section 2(o) covers private offices and any place an employee visits for work, including employer transport. "Employee" includes contract workers, probationers, trainees and apprentices, and in our reading interns and consultants.

| Term | Meaning under the Act | Section | What it reaches in a subsidiary |
|---|---|---|---|
| Aggrieved woman | A woman of any age, employed or not, who alleges sexual harassment | 2(a) | Employees, visitors, client staff, job applicants |
| Employee | Regular, temporary, ad hoc or daily wage staff, hired directly or through a contractor, including coworkers, contract workers, probationers, trainees and apprentices, paid or unpaid | 2(f) | Staff on the subsidiary's payroll and staff supplied by an agency or employer of record; in our reading, interns and consultants too |
| Employer | In the private sector, the person responsible for management, supervision and control of the workplace | 2(g) | The Indian company, acting through its board and managers |
| Workplace | Offices and establishments, plus any place visited arising out of or during employment, including employer transport | 2(o) | Client sites, offsites, travel, cabs and, in our reading, an employee's home while working |
| Sexual harassment | Unwelcome physical contact, a demand for sexual favours, sexually coloured remarks, showing pornography, or other unwelcome sexual conduct | 2(n) | Conduct in person, by chat, email or video call |

Section 3(2) adds five circumstances that can amount to harassment. They include an implied promise of preferential treatment, a threat about employment, and a hostile or humiliating work environment.

The ministry's [release of 6 Feb 2026](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2224438&reg=3&lang=1) confirms that economic dependency on the employer is not a condition for protection. So an intern or a consultant from a vendor is protected at your office.

The Act protects women only. A gender neutral global policy can extend the company's own process to everyone, but the statutory route under the Act is for women complainants.

## How do you constitute the Internal Committee?

The employer constitutes the IC by a written order under section 4(1). It sets one up at each office or administrative unit located at a different place. Section 4(2) sets the members: a senior woman employee as presiding officer, at least two employees, and one external member. At least half the members must be women. Members serve up to three years.

| Seat | Who qualifies | Rule | Our practice |
|---|---|---|---|
| Presiding officer | A woman employed at a senior level at the workplace | Section 4(2)(a) | Choose someone outside the reporting line of the largest teams |
| Presiding officer if no senior woman is available | A woman nominated from another office or unit of the workplace, failing that from another workplace of the same employer or another department or organisation | Proviso to section 4(2)(a) | Look within the Indian company first, because the parent is a separate employer |
| Employee members | At least two, preferably committed to the cause of women, or with social work experience or legal knowledge | Section 4(2)(b) | Pick from different functions and both genders |
| External member | One member from an NGO or association committed to the cause of women, or a person familiar with sexual harassment issues | Section 4(2)(c) | Engage on a written letter with fees, confidentiality and conflict terms |
| Gender balance | At least half the members nominated must be women | Proviso to section 4(2) | Recheck after every resignation |
| Term | Not more than three years from the date of nomination | Section 4(3) | Diary renewal dates |

Section 4(5) requires removal of a member who breaches confidentiality, is convicted of an offence or is found guilty in a disciplinary proceeding. The vacancy is then filled by fresh nomination.

The quorum matters at hearings. Rule 7 needs at least three members, including the presiding officer, present at the inquiry. A four member committee therefore cannot afford two absences.

A subsidiary with offices in Gurugram and Bengaluru needs a committee for each office, under section 4(1). We often see one committee named for "India". That fails the text where the offices are in different cities.

## Who can be the external member of the Internal Committee?

The external member comes from a non governmental organisation or association committed to the cause of women. Or the member is a person familiar with issues relating to sexual harassment. The 2013 Rules include social workers with five years' relevant experience, and people familiar with labour, service, civil or criminal law.

The external member exists to give the committee independence. We apply four tests before appointing one:

1. **No conflict.** The company's own retained lawyer or auditor is a poor choice, because the member's independence will be challenged.
2. **Relevant experience.** We ask for a record of past inquiries and training.
3. **Availability.** Hearings need the quorum within the 90 day window, so the member must commit time.
4. **Written terms.** The letter covers fees, confidentiality under section 16, data handling and the term.

The 2013 Rules provide INR 200 a day plus travel for holding proceedings, payable by the employer. In practice external members charge a professional fee agreed in the engagement letter.

## What must the POSH policy and training cover?

Section 19 lists ten duties for every employer. They include a safe workplace, displaying the penal consequences and the IC order, regular workshops and facilities for the committee. Others cover help with criminal complaints, treating harassment as misconduct under the service rules and monitoring the committee's reports. The 2013 Rules add a written internal policy, orientation for committee members and publication of the members' names and contacts.

| Section 19 clause | Duty | How we implement it |
|---|---|---|
| (a) | Provide a safe working environment, including safety from people the staff meet at work | Visitor and client conduct rules; cab and travel policies |
| (b) | Display the penal consequences of sexual harassment and the order constituting the IC | Poster at each office and on the intranet |
| (c) | Organise workshops and awareness programmes at regular intervals, and orientation for IC members | Annual staff session; induction for joiners; IC training each year |
| (d) | Provide facilities to the IC or LC for dealing with complaints and inquiries | A private room, secure email and a record keeper |
| (e) | Help secure the attendance of the respondent and witnesses | Leave and travel approved for hearings |
| (f) | Make available the information the committee needs | Access logs, chat records and rosters on request |
| (g) | Give help to the woman if she chooses to file a criminal complaint | A named contact and legal support |
| (h) | Start action under the law against the perpetrator if she wishes, including a non employee | Escalation to the client or vendor; police complaint support |
| (i) | Treat sexual harassment as misconduct under the service rules and start action for it | A misconduct entry in the code of conduct and the India annexure |
| (j) | Monitor the timely submission of reports by the IC | A named owner and a calendar reminder for the annual report |

The Supreme Court's general directions of 12 May 2023 (para 77) tell government bodies, authorities and statutory bodies to publish the committee's composition and contact details on their websites. The same direction covers the online complaint procedure and the internal policies. The directions do not name private employers, but we publish the same details on the careers or contact page of a client's site.

Training works best as a short annual session with real scenarios from Indian offices. The IC needs separate training on running an inquiry, since its findings must survive an appeal.

## How does a complaint move from filing to final action?

A woman files a written complaint within three months of the incident, or of the last incident in a series. The IC can extend this by up to three months for recorded reasons. The inquiry must finish within 90 days. The IC reports within 10 days of finishing, and the employer acts within 60 days of the report.

| Step | Time limit | Provision |
|---|---|---|
| Written complaint by the woman, or by a permitted person on her behalf | Within 3 months of the incident or last incident | Section 9(1); rule 6 |
| Extension of the complaint period | Up to 3 further months, with reasons recorded | Proviso to section 9(1) |
| Conciliation, if she asks for it | Before the inquiry starts; no monetary settlement | Section 10 |
| Copy of the complaint to the respondent | Within 7 working days of receipt | Rule 7 |
| Respondent's reply with documents and witnesses | Within 10 working days of receiving the copy | Rule 7 |
| Ex parte proceedings | After three consecutive absences and 15 days' written notice | Rule 7 |
| Completion of the inquiry | Within 90 days | Section 11(4) |
| Report of findings to the employer | Within 10 days of completing the inquiry | Section 13(1) |
| Employer acts on the recommendations | Within 60 days of receiving the report | Section 13(4) |
| Appeal against the recommendations | Within 90 days of the recommendations | Section 18 |

The complainant files six copies with supporting documents under rule 7. Parties cannot bring a legal practitioner into the inquiry. Where the respondent is an employee, the inquiry follows the service rules that apply to the respondent, under section 11(1).

Section 16 bars publication of the complaint, the identities of the parties and witnesses, and the proceedings. Under the 2013 Rules, a person who breaches it pays a penalty of INR 5,000, which the employer recovers.

In a harassment case, the IC inquiry comes first and the disciplinary order follows its recommendation. Our guide to [termination and retrenchment under the IR Code](/insights/termination-retrenchment-industrial-relations-code) covers the dismissal steps.

## What interim relief and outcomes can the Internal Committee recommend?

During the inquiry, section 12 lets the IC recommend a transfer of either party, or leave for the woman of up to three months. Rule 8 lets it stop the respondent from assessing her work. At the end, the IC can recommend action under the service rules and compensation, or action against a malicious complainant.

The outcomes break down as follows:

- **If the allegation is proved.** Section 13(3) lets the IC recommend action for misconduct under the service rules. It can also recommend compensation, deducted from the respondent's salary.
- **Compensation factors.** Section 15 looks at mental trauma, loss of career opportunity, medical expenses, the respondent's income and whether payment can be in instalments.
- **If the allegation is not proved.** The IC recommends no action. Failure to prove a complaint is not misconduct by the complainant, under section 14.
- **If the complaint is malicious or false.** Section 14 lets the IC recommend action against a complainant who knowingly made a false complaint or produced forged evidence.

## What annual reports and disclosures are due?

Section 21 requires the IC to prepare an annual report for each calendar year and submit it to the employer and the District Officer. Rule 14 lists its contents. Section 22 requires the employer to include the number of cases and their disposal in its own annual report. For a company, the board report carries the disclosure.

| Report | Prepared by | Sent to | Timing | Provision |
|---|---|---|---|---|
| IC annual report | Internal Committee | Employer and District Officer | Each calendar year | POSH Act, section 21; rule 14 |
| Employer annual report | Employer | In its annual report, or to the District Officer if it has none | Each year | POSH Act, section 22 |
| Board report statement on IC constitution | Board of directors | Shareholders, and the Registrar with AOC-4 | Each financial year | Companies (Accounts) Rules, 2014, rule 8(5)(x), inserted by G.S.R. 725(E) of 31 Jul 2018 |
| Board report numbers on complaints and the Maternity Benefit Act statement | Board of directors | Shareholders, and the Registrar with AOC-4 | Each financial year from 14 Jul 2025 | Companies (Accounts) Second Amendment Rules, 2025, G.S.R. 357(E) |
| IC details and annual report upload | Employer or nodal officer | SHe-Box portal | When the committee changes and each year | MWCD backgrounder of 12 Feb 2026 |

Rule 14 asks for five items. They are complaints received, complaints disposed of, cases pending for more than 90 days, workshops held and the action taken.

Neither the Act nor the 2013 Rules set a date for filing with the District Officer, and the ministry's backgrounder of 12 Feb 2026 gives none. Ask the District Officer of your district for any notified date and format, and keep the acknowledgement.

The board report statement came through the Companies (Accounts) Amendment Rules, 2018 (G.S.R. 725(E) of 31 Jul 2018), which inserted clause (x) in rule 8(5). The [ministry's release of 11 Feb 2022](https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=1797683) records the change.

The Companies (Accounts) Second Amendment Rules, 2025 (G.S.R. 357(E) of 30 May 2025) took effect on 14 Jul 2025. They added complaints received, disposed of and pending for more than 90 days, and a statement on Maternity Benefit Act compliance. Read the amended Companies (Accounts) Rules, 2014 on the MCA website for the clause numbers before you draft the board report. Our guide to the [AOC-4 and MGT-7 annual filing](/insights/aoc-4-mgt-7-annual-filing-foreign-owned-company) covers the board report.

## What is SHe-Box, and do states run their own portals?

SHe-Box is the Ministry of Women and Child Development's portal at shebox.wcd.gov.in, launched in its current form on 29 Aug 2024. Women can file complaints that route to the right IC or Local Committee. Workplaces upload their IC member details, annual reports and training records. The Supreme Court has allowed states to run their own portals.

The ministry's [backgrounder of 12 Feb 2026](https://static.pib.gov.in/WriteReadData/specificdocs/documents/2026/feb/doc2026212787901.pdf) describes the portal's features. It tracks complaints in real time, supports several languages and holds a central repository of committees that "was previously not available". Nodal officers keep the data current.

Take up is large. The [ministry's Rajya Sabha reply, released on 1 Apr 2026](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2247562), says over 1,61,000 public and private workplaces had onboarded by 27 Mar 2026. They had updated details of over 68,460 ICs, and 777 Local Committees were listed.

State and district authorities enforce through the Supreme Court's orders in the Aureliano Fernandes matter:

- **3 Dec 2024.** The [Court's order](https://api.sci.gov.in/supremecourt/2023/22553/22553_2023_8_6_57605_Order_03-Dec-2024.pdf) told Chief Secretaries to have District Officers survey public and private organisations for committees. It said states could set up their own SHe-Box, and complaints received there are referred to the right committee.
- **12 Aug 2025 and 6 Jan 2026.** Later orders told District Officers to run the survey with the district and state Labour Commissioners and upload the data to SHe-Box, as the 1 Apr 2026 release records.
- **10 Feb 2026.** The [Court's order](https://api.sci.gov.in/supremecourt/2023/22553/22553_2023_3_16_68261_Order_10-Feb-2026.pdf) asked states to file affidavits on committees in government and private establishments.

In practice, a district women and child development office or labour office may write asking for committee details or a SHe-Box upload. We answer with the IC order, the member list and the latest annual report. Check whether your state runs its own portal before you assume SHe-Box alone is enough.

## What are the penalties for non compliance?

Section 26 fines an employer up to INR 50,000 for failing to constitute an IC or to act under sections 13, 14 or 22. The same fine applies to a breach of any other provision or rule. A second conviction attracts twice the punishment. It can also lead to cancellation, withdrawal or non renewal of a licence or registration the business needs.

Two smaller penalties sit outside section 26:

- **Confidentiality.** A person who publishes the details barred by section 16 pays INR 5,000 under section 17 and the 2013 Rules, which the employer recovers.
- **Malicious complaints.** Section 14 lets the IC recommend action against a complainant who made a malicious or knowingly false complaint, or produced forged evidence.

The fine is small next to the other costs. A badly run inquiry can be set aside. In Aureliano Fernandes, the Supreme Court set aside a High Court judgment that upheld a dismissal. It sent the inquiry back to the Complaints Committee to continue from the stage reached on 5 May 2009. The parent's own global reporting may also treat a POSH failure as a control failure.

## How should a global harassment policy be adapted for India?

Keep the parent's code of conduct, but add an India annexure that follows the Act. The annexure names the IC for each office and gives the three month complaint window. It explains conciliation, sets the 90 day inquiry and 60 day action periods, and gives the appeal route. A global hotline must hand an Indian complaint by a woman to the IC.

| Feature of a typical global policy | What India requires | Fix in the India annexure |
|---|---|---|
| Gender neutral protection | Statutory route for women complainants | Keep the global cover, and state that women also have the statutory IC route |
| Investigation by HR, ethics or an outside firm | Inquiry by the IC with an external member | Route Indian complaints by women to the IC; investigators can assist the IC |
| Open ended investigation timelines | Inquiry within 90 days; report in 10 days; action in 60 days | Set the statutory dates in the procedure |
| Settlement or separation payments to close a case | Conciliation without a monetary settlement | Allow conciliation only at her request and without money |
| Respondent can bring counsel | No legal practitioner in the inquiry | State this in the procedure |
| Retaliation clause | Duties under section 19 and confidentiality under section 16 | Add the INR 5,000 confidentiality penalty and the bar on publication |
| Global annual statistics | Calendar year IC report to the District Officer, and board report numbers | Add both reports to the India compliance calendar |
| Parent executive as decision maker | The Indian employer acts on the IC report within 60 days | Give the Indian board or director the authority to act |

Two cases need a written protocol. The first is a respondent who works for the parent or a group company, such as a visiting executive. The IC can still inquire into conduct at the Indian workplace. Section 19(h) requires the employer to start action against a non employee if she wishes. Agree in advance that the parent will make the person available and act on the findings.

The second is a complaint by a man or a non binary person. The Act does not cover it, so the company's own policy governs. We run it through the same committee members under the company policy, and record that the statutory powers do not apply.

Committee records hold sensitive personal data. Our note on the [DPDP Rules 2025](/insights/dpdp-rules-2025-compliance-foreign-companies) covers retention and access controls for that data.

## What should a small Indian subsidiary with fewer than 10 employees do?

A workplace with fewer than 10 workers does not constitute an IC. Complaints go to the Local Committee of the district under section 6(1). The employer still has the section 19 duties, so it should adopt a short policy, display the Local Committee's details and train staff. It should constitute the IC on reaching 10 employees.

We track headcount at each office, not across India, because section 4(1) works office by office. Contract workers and trainees count as employees under section 2(f), and in our reading so do interns, so a team of eight payroll staff and three interns has 11 employees. Workers supplied through an employer of record are still employees at your workplace under section 2(f). Our comparison of [an employer of record and a subsidiary](/insights/employer-of-record-vs-subsidiary-india) covers that model.

## What changed in 2026

The Act itself has not changed since 2013. Enforcement has. The table lists the main steps with their dates and instruments.

| Date | Old position | New position | Instrument |
|---|---|---|---|
| 12 May 2023 | No court directions on verifying committees and publishing their details | Union, States, authorities and statutory bodies to verify committees and publish composition, contacts and complaint procedure | Supreme Court, Aureliano Fernandes, para 77 |
| 29 Aug 2024 | Older SHe-Box complaint system | New SHe-Box portal with a central repository of committees | MWCD launch |
| 3 Dec 2024 | No court directed district survey of private ICs | District Officers to survey public and private organisations; states can run their own SHe-Box | Supreme Court order |
| 14 Jul 2025 | Board report stated IC compliance only | Board report adds complaint numbers and a Maternity Benefit Act statement | Companies (Accounts) Second Amendment Rules, 2025 |
| 12 Aug 2025 and 6 Jan 2026 | Survey by District Officers alone | Survey with Labour Commissioners and upload to SHe-Box | Supreme Court orders |
| 10 Feb 2026 | Most states had filed general compliance affidavits | Remaining states given four weeks; states to file affidavits on ICs in government and private establishments | Supreme Court order |
| 27 Mar 2026 | Not applicable | Over 1,61,000 workplaces onboarded and over 68,460 ICs updated (data as on 27 Mar 2026) | MWCD reply, PIB release of 1 Apr 2026 |

## Worked example

**Scenario 1. A complaint after an offsite.** A Singapore company's Bengaluru subsidiary holds a team offsite in Goa on 12 Feb 2026. An analyst says a senior manager made sexually coloured remarks there. The offsite counts as a workplace under section 2(o), because she attended it for work. She files a written complaint with the Bengaluru IC on Monday 23 Mar 2026.

The three month window from 12 Feb 2026 runs to 12 May 2026, so the complaint is in time. The IC counts working days as Monday to Friday and, for this illustration, ignores public holidays.

| Step | Date | Working |
|---|---|---|
| Complaint received | Monday 23 Mar 2026 | Within 3 months of 12 Feb 2026 |
| Copy sent to the manager | By Wednesday 1 Apr 2026 | 7 working days from 23 Mar |
| Manager receives the copy | Friday 27 Mar 2026 | Sent by email and courier |
| Manager's reply due | Friday 10 Apr 2026 | 10 working days from 27 Mar |
| Inquiry complete | By Friday 19 Jun 2026 | Inside 90 days from 23 Mar, which ends Sunday 21 Jun |
| Report to the employer | By Monday 29 Jun 2026 | 10 days from 19 Jun |
| Employer acts | By Friday 28 Aug 2026 | 60 days from 29 Jun |
| Last day for appeal | Sunday 27 Sep 2026 | 90 days from 29 Jun |

We count the 90 days from the complaint, which is the stricter reading of section 11(4).

**Scenario 2. Compensation in instalments.** The IC finds the allegation proved. It recommends a written warning and withholding of the manager's next increment. It also recommends compensation of INR 2,40,000 to the analyst under sections 13(3) and 15. The manager's monthly wages are INR 1,20,000, and section 15 allows payment in instalments.

The employer deducts INR 30,000 a month for eight months (2,40,000 ÷ 8). That is 25 percent of wages, which keeps the deduction within the 50 percent cap in section 18(3) of the Code on Wages, 2019. The action order also records how the employer will recover any balance if he leaves early.

## Common mistakes

1. **One committee for all of India.** Section 4(1) requires one at each office in a different place. Fix: constitute a committee for each office with 10 or more employees.
2. **An external member who is the company's lawyer.** Independence is the point of the seat. Fix: appoint an NGO representative or an independent practitioner with no other mandate.
3. **Letting the global ethics team investigate.** The IC holds the statutory powers. Fix: route complaints by women to the IC and let investigators support it.
4. **Settling with money.** Section 10 bars a monetary settlement as the basis of conciliation. Fix: use conciliation only at her request and record terms without payment.
5. **Missing the District Officer report.** The Act requires it every calendar year. Fix: calendar it and keep the acknowledgement.
6. **Counting only payroll staff.** Contract workers, trainees and apprentices are employees under section 2(f), and in our reading so are interns. Fix: count everyone who works at the office.
7. **Letting committee terms lapse.** Terms end within three years. Fix: diary renewals and pass a fresh order before expiry.
8. **Leaving the quorum to chance.** Rule 7 needs three members, including the presiding officer, at the inquiry. Fix: keep at least four members and name alternates.
9. **No India annexure.** A global policy without Indian timelines invites an appeal. Fix: add the annexure and train the IC on it.

## Checklist

1. Count employees at each Indian office, including interns, trainees and contract staff.
2. Constitute an Internal Committee by written order for each office with 10 or more employees.
3. Appoint a senior woman presiding officer, at least two employee members and an independent external member.
4. Confirm that at least half the members are women and record each member's term.
5. Sign an engagement letter with the external member covering fees, confidentiality and conflicts.
6. Adopt an India annexure to the global policy with the statutory timelines and appeal route.
7. Display the penal consequences and the committee order at each office and on the intranet.
8. Publish the committee's composition and contact details on the website.
9. Train all staff each year and give committee members separate inquiry training.
10. Upload committee details to SHe-Box, or the state portal, and update them on every change.
11. File the committee's calendar year annual report with the employer and the District Officer, and add it to your [2026-27 compliance calendar](/insights/compliance-calendar-foreign-owned-company-india-2026-27).
12. Include the complaint numbers and the Maternity Benefit Act statement in the board report.
13. Review the committee's composition before each term ends.

Our [regulatory compliance advisory team](/services/legal-advisory.html) can set up the committee, the annexure and the reporting calendar for your Indian subsidiary.

## Key terms

- **POSH Act**: The common name for the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (Act 14 of 2013), in force from 9 Dec 2013. It requires employers to prevent sexual harassment of women at work and to run a committee that inquires into complaints. (https://krystal7.com/glossary#posh-act)
- **Internal Committee (IC)**: The committee every employer of a workplace with 10 or more employees constitutes under section 4 of the POSH Act, 2013, which names it the Internal Complaints Committee. It has a senior woman presiding officer, at least two employee members and an external member, with at least half women, for a term of up to three years. (https://krystal7.com/glossary#internal-committee)
- **External member (Internal Committee)**: The IC member from a non governmental organisation or association committed to the cause of women, or a person familiar with sexual harassment issues, under section 4(2)(c) of the POSH Act, 2013. The 2013 Rules describe such a person and the employer pays the member's fees. (https://krystal7.com/glossary#external-member-internal-committee)
- **Local Committee (LC)**: The district committee constituted by the District Officer under section 6 of the POSH Act, 2013. It hears complaints from workplaces with fewer than 10 workers, and complaints made against the employer. (https://krystal7.com/glossary#local-committee)
- **District Officer (POSH Act)**: The officer the appropriate government notifies for each district under section 5 of the POSH Act, 2013, usually a District Magistrate, Collector or Deputy Collector. The District Officer constitutes the Local Committee and receives annual reports from Internal Committees. (https://krystal7.com/glossary#district-officer-posh-act)
- **SHe-Box portal**: The Sexual Harassment electronic Box, an online portal of the Ministry of Women and Child Development at shebox.wcd.gov.in, launched in its current form on 29 Aug 2024. It routes complaints to the right committee and holds details of Internal and Local Committees uploaded by workplaces and districts. (https://krystal7.com/glossary#she-box-portal)
- **Aggrieved woman**: A woman of any age, whether employed or not, who alleges sexual harassment at a workplace, under section 2(a) of the POSH Act, 2013. A visitor, client employee or job applicant can be an aggrieved woman as well as an employee. (https://krystal7.com/glossary#aggrieved-woman)

## Frequently Asked Questions

### Is POSH compliance mandatory for a foreign owned company in India?

Yes. The POSH Act, 2013 applies to every employer of a workplace in India, whatever its ownership. A subsidiary of a US, UK or Singapore company must constitute an Internal Committee under section 4 at each office with 10 or more employees. It must also adopt a policy, train staff and report every year.

### How many employees trigger the Internal Committee requirement?

Ten. Section 6(1) sends complaints from workplaces with fewer than 10 workers to the district Local Committee. An office with 10 or more employees needs its own Internal Committee under section 4. Count contract workers, trainees and apprentices, because section 2(f) treats them as employees. We count interns and consultants too.

### Who must be on the Internal Committee?

Section 4(2) requires a senior woman employee as presiding officer and at least two employee members. The employee members should be committed to the cause of women or have social work or legal knowledge. One external member completes the committee. At least half the members must be women. Members hold office for up to three years under section 4(3).

### Who can be the external member of a POSH committee?

Section 4(2)(c) allows a member of a non governmental organisation or association committed to the cause of women. It also allows a person familiar with sexual harassment issues. The 2013 Rules include social workers with five years' relevant experience and people familiar with labour, service, civil or criminal law. The employer pays the member's fees.

### Can the parent company's global ethics team investigate a complaint in India?

Not in place of the Internal Committee. The POSH Act gives the IC the inquiry role and civil court powers under section 11(3). A global team can support the IC with evidence and logistics. The IC's findings and the Indian employer's action within 60 days remain the statutory steps.

### What is the time limit to file a POSH complaint?

Three months from the incident, or from the last incident in a series, under section 9(1). The Internal Committee can extend the period by up to three more months if circumstances prevented the woman from filing, recording its reasons in writing. The complaint must be in writing, and the committee helps if she cannot write it.

### How long does a POSH inquiry take?

Section 11(4) requires the inquiry to finish within 90 days. Under rule 7, the respondent gets a copy within 7 working days and replies within 10 working days. The committee reports within 10 days of finishing under section 13(1), and the employer acts within 60 days under section 13(4).

### Can a POSH complaint be settled with money?

No. Section 10 allows conciliation at the woman's request before the inquiry starts, but no monetary settlement can be the basis of conciliation. Compensation is possible only after a completed inquiry, under sections 13(3) and 15. The employer deducts it from the respondent's salary or the respondent pays it.

### What goes into the POSH annual report?

Rule 14 lists five items. They are complaints received in the calendar year, complaints disposed of, cases pending for more than 90 days, workshops held and the action taken. The Internal Committee sends the report to the employer and the District Officer under section 21.

### What must a company disclose about POSH in its board report?

Since 2018, rule 8(5) of the Companies (Accounts) Rules, 2014 requires a statement that the company complied with the rules on constituting the Internal Committee. From 14 Jul 2025, the board report also gives complaints received, disposed of and pending beyond 90 days, and a Maternity Benefit Act compliance statement.

### Is SHe-Box registration compulsory for private companies?

The POSH Act does not mention SHe-Box. The ministry's backgrounder of 12 Feb 2026 says workplaces are required to upload committee details, annual reports and training records. Supreme Court orders since 3 Dec 2024 direct District Officers to collect and upload this data, so we upload it for every client office.

### What is the penalty for not having an Internal Committee?

A fine of up to INR 50,000 under section 26(1) of the POSH Act, 2013. A second conviction attracts twice the punishment and can lead to cancellation, withdrawal or non renewal of a licence or registration the business needs. Breach of confidentiality carries a separate INR 5,000 penalty.

### Does the POSH Act protect men?

No. Section 2(a) defines an aggrieved woman, so the statutory complaint route is for women. A company's global policy can protect everyone, and we run complaints by men or non binary staff through the same committee under the company policy. That process does not carry the Act's statutory powers.

### Does work from home count as a workplace under the POSH Act?

In our reading, yes. Section 2(o) covers any place an employee visits arising out of or during the course of employment, and includes a dwelling place or house. Harassment on a video call or chat during work is within the Act, so the committee can inquire into it.

## Sources

- Delhi High Court (hosted text), The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (Act 14 of 2013) and Rules, 2013 (G.S.R. 769(E), 9 Dec 2013), https://delhihighcourt.nic.in/files/announcements/13117258965423eb9a1600.pdf
- Supreme Court of India, Aureliano Fernandes v. State of Goa, Civil Appeal No. 2482 of 2014, judgment of 12 May 2023, https://api.sci.gov.in/supremecourt/2012/21189/21189_2012_17_1501_44461_Judgement_12-May-2023.pdf
- Supreme Court of India, order in M.A. Diary No. 22553 of 2023, 3 Dec 2024, https://api.sci.gov.in/supremecourt/2023/22553/22553_2023_8_6_57605_Order_03-Dec-2024.pdf
- Supreme Court of India, order in M.A. Diary No. 22553 of 2023, 10 Feb 2026, https://api.sci.gov.in/supremecourt/2023/22553/22553_2023_3_16_68261_Order_10-Feb-2026.pdf
- Press Information Bureau, Safeguarding Women at Work: An Overview of SH Act 2013 and SHe-Box Portal (backgrounder), 12 Feb 2026, https://static.pib.gov.in/WriteReadData/specificdocs/documents/2026/feb/doc2026212787901.pdf
- Press Information Bureau, backgrounder on the SH Act, 12 Feb 2026, https://www.pib.gov.in/PressReleasePage.aspx?PRID=2227013&reg=3&lang=1
- Press Information Bureau, Ministry of Women and Child Development reply in Lok Sabha, 6 Feb 2026, https://www.pib.gov.in/PressReleasePage.aspx?PRID=2224438&reg=3&lang=1
- Press Information Bureau, SHe-Box Portal, Ministry of Women and Child Development reply in Rajya Sabha (released 1 Apr 2026), https://www.pib.gov.in/PressReleasePage.aspx?PRID=2247562
- Ministry of Corporate Affairs, Companies (Accounts) Amendment Rules, 2018, G.S.R. 725(E), 31 Jul 2018 (copy hosted by ICAI), https://navimumbai.icai.org/detail/31710.aspx
- Institute of Company Secretaries of India, Subjectwise Monthly Updates, May 2025 (Companies (Accounts) Second Amendment Rules, 2025, G.S.R. 357(E), 30 May 2025), https://www.icsi.edu/media/webmodules/SUBJECTWISE_MONTHLY_UPDATES_May_2025.pdf
- Press Information Bureau, Prevention of Sexual Harassment at Workplace, 11 Feb 2022, https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=1797683
- Ministry of Women and Child Development, SHe-Box portal, https://shebox.wcd.gov.in/

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