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Employer compliance glossary
POSH Act: Full Form & Meaning
The full form of POSH is Prevention of Sexual Harassment. It is the common name for the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 — an Indian law that requires employers to prevent and redress workplace sexual harassment, including setting up an Internal Committee at any workplace with 10 or more employees.
Key takeaway
Any workplace with 10 or more employees must constitute an Internal Committee under the POSH Act — headed by a woman, with a majority of women members — and resolve a complaint within 90 days.
POSH Act at a glance
What the POSH Act requires from an employer
The Act’s aim is prevention first, redressal second. In practice, an employer’s core obligations are:
- Constitute an Internal Committee (IC) at every office or branch with 10 or more employees — headed by a senior woman as Presiding Officer, with a majority of women members and one external expert member.
- Frame and publish an anti-harassment policy and communicate it across the workforce, alongside displaying the penal consequences of harassment at the workplace.
- Run awareness and IC-training programmes so employees know their rights and the committee knows how to conduct an inquiry.
- Inquire and resolve within 90 days, then act on the IC’s recommendations within 60 days — and file the mandated annual report with the district authority.
For workplaces with fewer than 10 employees, or where the complaint is against the employer itself, a district-level Local Committee handles the matter instead of an IC.
Why POSH matters — and where insurance fits
Beyond being the right thing to do, POSH is a hard compliance obligation with teeth: non-compliance can attract a fine, and repeat offences can lead to cancellation of a business licence or registration. A mishandled complaint can also escalate into litigation, regulatory scrutiny and serious reputational damage.
That exposure is where insurance becomes relevant. Directors & Officers (D&O) liability insurance, frequently extended to cover employment practices, is the policy that responds to legal defence costs and awards arising from employment-practice claims — including harassment allegations — against the company and its leadership. It does not replace POSH compliance; it protects the balance sheet when a claim still lands despite a compliant process.
The two work together: a genuinely implemented POSH framework reduces the likelihood and severity of a claim, while D&O cover absorbs the financial shock if one occurs. Treating either as a substitute for the other is the common mistake.
How Onsurity helps employers stay covered
Onsurity is a benefits and business-insurance platform, not a legal adviser — but it helps you put the risk-transfer piece in place. Directors & Officers cover can be arranged alongside your group health, personal accident and term life benefits, so leadership liability is not an afterthought.
For the people side of compliance, the HR policy resources and HR glossary give your team a starting point for policy language and terminology, while a clear grievance-redressal route keeps concerns from escalating.
The whole stack — health, accident, life and business-liability cover — sits in one place on the TeamSure dashboard, so HR manages protection for both employees and the organisation without juggling separate vendors. Confirm exact policy scope and legal obligations with your insurer and legal counsel.
Frequently asked questions
What is the full form of POSH?
POSH stands for Prevention of Sexual Harassment. It is the common name for the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 — an Indian law that requires employers to prevent and redress sexual harassment at the workplace. It came into force on 9 December 2013.
Which workplaces does the POSH Act apply to?
The Act applies to virtually every workplace — private companies, government offices, NGOs, and even unorganised or domestic settings. Any workplace with 10 or more employees must constitute an Internal Committee (IC). For smaller establishments, or for complaints against the employer, a district-level Local Committee handles the matter.
What is an Internal Committee (IC) under POSH?
The Internal Committee (earlier called the Internal Complaints Committee) is the body a workplace must set up to receive and inquire into complaints of sexual harassment. It must be headed by a senior woman employee as Presiding Officer, have a majority of women members, and include one external member with relevant expertise. It must resolve a complaint within 90 days.
What are an employer’s duties under the POSH Act?
Employers must constitute an IC where 10 or more people are employed, frame and communicate an anti-harassment policy, conduct awareness and IC-training programmes, display the penal consequences of harassment, assist in filing complaints, and file an annual report. Non-compliance can attract a fine and, on repeat offences, cancellation of licence or registration.
How does the POSH Act relate to insurance?
A harassment complaint — or an allegation that the employer mishandled one — can lead to litigation, regulatory penalties and reputational cost. Directors & Officers (D&O) liability insurance, often with an employment-practices extension, is the cover that responds to legal defence costs and awards arising from such employment-practice claims against the company and its leadership. POSH compliance and this cover are complementary risk controls, not substitutes.
Related terms & resources
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