Interactive POSH Act Compliance Guide

29-10-2025 09:30 AM - By Nexcel
POSH Act Compliance Checklist for Small Businesses

Interactive POSH Act Compliance Guide

A simplified, step-by-step tool for small businesses in India to understand and implement the Prevention of Sexual Harassment (POSH) at Workplace Act, 2013.

Is the POSH Act Applicable to Your Business?

The POSH Act applies to every organisation, regardless of its size or structure. Use this quick checker to confirm your status. The key factor is having one or more employees.

Your Compliance Checklist

This interactive checklist guides you through the essential steps for POSH compliance. Completing these actions is mandatory under the law.

Overall Progress0%

1. Policy & Communication

2. Internal Committee (IC)

3. Training & Awareness

4. Reporting & Duties

Complaint Handling Process

This flowchart outlines the mandatory steps for the Internal Committee (IC) to follow when a complaint is filed. Adhering to these timelines is crucial.

1

Complaint Submission

Aggrieved person submits a written complaint to the IC within 3 months of the incident.

2

Conciliation (Optional)

IC may offer conciliation at the request of the aggrieved person. Monetary settlement is not permitted.

3

Inquiry Initiation

If no conciliation, IC initiates an inquiry. Sends a copy of the complaint to the respondent within 7 working days.

4

Inquiry Completion

The entire inquiry must be completed within 90 days from the start date.

5

Report Submission

IC submits its inquiry report and recommendations to the employer within 10 days of completing the inquiry.

Key Definitions

It includes any one or more of the following unwelcome acts or behavior (whether directly or by implication):

  • Physical contact and advances
  • A demand or request for sexual favours
  • Making sexually coloured remarks
  • Showing pornography
  • Any other unwelcome physical, verbal or non-verbal conduct of a sexual nature

The definition is very broad. It includes regular, temporary, ad hoc, or daily wage employees. It also covers interns, trainees, apprentices, and even individuals working for remuneration, voluntarily, or otherwise, whether the terms of employment are express or implied.

This is also defined broadly to include any place visited by the employee arising out of or during the course of employment. This includes the office premises as well as transportation provided by the employer, and any location visited for work-related activities like client sites, offsites, and work-related social events.

Consequences of Non-Compliance

Financial Penalty

An employer can be fined up to ₹50,000 for failing to comply with the POSH Act, such as not constituting an Internal Committee.

Repeated Non-Compliance

For repeated breaches, the penalty can be doubled. Furthermore, it can lead to the cancellation of the business license or registration required to operate.

© 2025 POSH Compliance Tool. This is an informational guide and not legal advice. Always consult with a legal professional for specific guidance.

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