POSH Act Applicability: Who Must Comply, Including Workplaces With Fewer Than 10 Employees

Many founders and HR teams assume the POSH Act only applies once a business reaches a certain size, or only if it employs women. Neither is right. POSH Act applicability is broader than most employers expect: the Act covers almost every workplace in India, and the number of employees only decides whether you need your own Internal Committee or whether complaints go to the Local Committee.

Enforcement is also getting stricter. In August 2025, the Supreme Court directed a district-wise survey of whether government and private organisations have set up Internal Committees, with Labour Commissioners asked to share data on registered businesses.³ This article explains who the Act applies to, what the 10-employee threshold means, and what every employer needs to have in place.

What is the POSH Act?

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, known as the POSH Act, requires employers to prevent sexual harassment of women at work and to provide a proper process for complaints to be made and inquired into. It gave legal force to the Vishaka guidelines laid down by the Supreme Court in 1997.

POSH Act applicability: which workplaces are covered

Section 2(o) defines “workplace” very widely.¹ It covers government bodies, private companies, firms, LLPs, trusts, societies, NGOs, educational institutions, hospitals and nursing homes, and sports institutes, as well as workplaces in the unorganised sector.

It also covers any place an employee visits in the course of work, including transport provided by the employer, and a dwelling place or house where a domestic worker is employed. In practice, if you employ people in India, the Act applies to you. There is no exemption based on industry, legal structure or size.

Who counts as an employee

Section 2(f) defines “employee” broadly. It includes regular, temporary, ad hoc and daily-wage staff, people engaged through a contractor or agency, and trainees, apprentices, interns and probationers, whether they are paid or not.

Who the Act protects

The Act protects any woman, of any age, who alleges sexual harassment at a workplace, whether or not she is employed there. That includes clients, visitors, consultants and job candidates. The Act itself protects women only, though many organisations choose a gender-neutral policy that covers everyone.

POSH Act for organisations with 10 or more employees

Under Section 4, every employer must constitute an Internal Committee at each office or administrative unit.¹ The committee must have:

• A Presiding Officer: a woman employed at a senior level.
• At least two internal members: employees committed to the cause of women, or with experience in social work or legal knowledge.
• One external member: from an NGO or association committed to the cause of women, or a person familiar with issues relating to sexual harassment.

At least half the members must be women, and members can hold office for up to three years. Read more in our guide on who can be the external member of a POSH Internal Committee.

How to count employees

The count includes every category of employee listed above, not only women. Contract staff, interns and trainees all count. The Act does not spell out how to count across several branches, so organisations with more than one office should take advice on whether each location needs its own committee, since Section 4 refers to every office or administrative unit.

Having no women employees does not remove the requirement. A complaint can come from a client, visitor or candidate, and the committee must exist to receive it.

POSH Act for less than 10 employees: the Local Committee

Section 6 requires the District Officer to set up a Local Committee in every district. It receives complaints from workplaces that have not constituted an Internal Committee because they have fewer than ten workers, and complaints where the person accused is the employer. It also handles complaints from women in the unorganised sector, including domestic workers.

Following Supreme Court directions in December 2024, states and union territories were required to appoint District Officers and constitute Local Committees by 31 January 2025, so every district should now have one.⁴

A small business is not exempt from the Act. It does not need its own committee, but it still has the general duties of an employer, including displaying the Local Committee’s details and cooperating with any inquiry.

What every employer must do under Section 19

Section 19 applies to every employer, whatever its size. The main duties are:

• provide a safe working environment, including safety from people the staff deal with at work
• display the penal consequences of sexual harassment and the order constituting the Internal Committee at a prominent place
• run awareness programmes and workshops at regular intervals, and orientation sessions for committee members
• give the committee the facilities it needs to handle complaints and conduct inquiries
• help secure the attendance of the respondent and witnesses
• assist the woman if she chooses to file a criminal complaint
• treat sexual harassment as misconduct under the service rules

The POSH Rules, 2013 also require employers to adopt a written policy against sexual harassment and share it widely with staff.²

Annual reporting

Under Section 21, the Internal Committee must prepare an annual report and submit it to the employer and the District Officer. Under Section 22, the employer must include the number of cases filed and their outcome in its own annual report, or inform the District Officer if it does not prepare one. Companies must also state in their board’s report that they have complied with the provisions on constituting an Internal Committee.

Penalties for non-compliance

Under Section 26, an employer that fails to constitute an Internal Committee, fails to act on its recommendations or breaks other provisions of the Act can be fined up to ₹50,000.¹ For a repeat violation, the penalty can be doubled, and the employer’s licence or registration to carry on business can be cancelled, withdrawn or not renewed.

Common misconceptions

“We have no women employees, so POSH doesn’t apply.” It still applies. Complaints can come from women who are not employees, such as clients, visitors or candidates.

“We have fewer than ten people, so we have no obligations.” You don’t need your own committee, but the Section 19 duties still apply, and complaints go to the Local Committee.

“Interns and contract staff don’t count.” They do. The definition of employee is wide, and they count towards the threshold.

“Our committee was set up years ago, so we’re covered.” Members serve for up to three years. If the term has expired or members have left, the committee must be reconstituted.

POSH compliance checklist

1. Count your workforce, including contract staff, interns and trainees.
2. If you have 10 or more employees, constitute an Internal Committee with an external member and issue a written order.
3. If you have fewer than 10, find your district’s Local Committee and display its details.
4. Adopt a written POSH policy and share it with all staff.
5. Run awareness sessions for staff and training for committee members.
6. File the annual report with the District Officer on time.

Key takeaways

The POSH Act applies to every workplace in India, whatever its size or sector. Employers with 10 or more employees must constitute an Internal Committee, while complaints from smaller workplaces go to the district’s Local Committee. Every employer has duties under Section 19, and with courts now tracking compliance district by district, a missing or outdated committee is a real risk.

This article is for general information only and is not legal advice.