Applicability of POSH Act on Private Limited Companies: A Comprehensive Guide



Quick Summary
The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013 (POSH Act) is crucial for ensuring a secure environment for women. This guide explains how the POSH Act applies to private limited companies, regardless of size, and outlines their compliance obligations. It covers the formation of an Internal Complaints Committee, policy development, training, and annual reporting requirements, as well as penalties for non-compliance.

SHORT SUMMARY The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013 (POSH Act) was established to guarantee a secure working environment for women. The Act, frequently linked to huge enterprises, is also applicable to Private Limited Companies provided they
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Yes, the POSH Act applies to all private limited companies, irrespective of their size, sector, or industry, especially those with 10 or more employees.

Companies with 10 or more employees must form an Internal Complaints Committee, formulate a POSH policy, conduct training programmes, and file an annual report.

Companies with fewer than 10 employees still need to formulate an internal POSH policy and conduct training programmes, though some compliances are less stringent.

The ICC is responsible for receiving and inquiring into complaints of sexual harassment, ensuring a fair process, and recommending appropriate action.

Penalties can include fines up to INR 50,000 for failure to constitute an ICC, act on recommendations, or file an annual report. Repeat offences can lead to higher penalties or business license cancellation.

No, the POSH Act specifically protects women employees. Men may need to seek recourse through other workplace policies or legal provisions.




About the Author

Practicing Compnay Secretary

CAREER PROFILE He is a Fellow Member of the Institute of Companies Secretaries of India having intense expertise in Corporate Law for the last 8 years. He is a young and progressive Practicing Company Secretary with zeal to dig deep into the nuances of Corporate Laws. Being a researcher at heart, he has done ... Read more

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