Who Needs to Comply with POSH Law in India? | Applicability

Who Needs to Comply with POSH Law in India? Applicability Explained

“We’re too small for POSH.” “We’re an NGO, not a company.” “Our team works remotely, so it doesn’t apply.” These are some of the most common — and most incorrect — assumptions employers make about the POSH Act. Here’s who actually needs to comply.

Short Answer: Almost Everyone

The POSH Act, 2013 is written to apply broadly. It covers private companies, government bodies, NGOs, educational institutions, hospitals, and even unorganised or informal businesses. If you have people working for you or with you in India, the law is likely already relevant to your organisation.

Private Companies and Startups

Every private entity — from a listed corporation to a two-person startup — falls under POSH. This includes companies registered under the Companies Act, LLPs, partnerships, and sole proprietorships. Team size doesn’t create an exemption; it only changes how you comply (more on that below).

Government and Public Sector Bodies

Ministries, PSUs, and local authorities must comply just like private employers, including constituting their own Internal Committee.

NGOs, Trusts, and Non-Profits

Being a non-profit doesn’t mean being exempt. NGOs, societies, and charitable trusts must ensure the same safe-workplace obligations as any commercial entity.

Schools, Colleges, and Hospitals

Educational institutions and healthcare organisations are explicitly covered, and their obligations extend to students, interns, and trainees — not just staff.

Small and Unorganised Businesses

Even businesses with fewer than 10 employees aren’t off the hook. They don’t need to form an Internal Committee, but complaints from their employees are handled by the Local Committee (LC) set up by the district officer, and the employer is still expected to cooperate and maintain a safe workplace.

The 10-Employee Threshold, Explained

Who Is Protected?

The Act protects women in the broadest sense of workplace involvement — not just direct employees:

• Full-time and part-time employees

• Interns and trainees, paid or unpaid

• Contract workers and consultants

• Daily wage and temporary workers

• Visitors, clients, and customers on work premises

What Counts as a “Workplace”?

This is where many employers get caught off guard. Under POSH, “workplace” isn’t limited to your office. It includes:

• Client sites visited for work

• Employer-arranged transport

• Work-from-home and remote setups

• Virtual spaces — emails, chats, video calls

So yes — POSH applies to remote and hybrid teams. A harassing message sent over a work Slack channel or during a video call can absolutely trigger a valid complaint.

Startups Aren’t Exempt Either

A common misconception is that POSH is a “big company problem.” In reality, investors and enterprise clients increasingly check for POSH compliance during due diligence. Waiting until you cross 10 employees to think about this is a mistake — the policy and safe-workplace obligations apply from day one.

Third Parties Count Too

If an employee is harassed by a vendor, client, or consultant during the course of work, the employer is still expected to act. POSH liability doesn’t stop at your payroll.

What’s at Risk If You Get This Wrong?

Non-compliance can mean a fine of up to ₹50,000, escalating penalties for repeat violations, and even cancellation of business registrations — on top of the reputational damage and weakened legal position in any dispute.

Bottom line: the question isn’t really “does POSH apply to us,” it’s “have we correctly figured out whether we need an Internal Committee or the Local Committee route, and have we covered every category of worker who interacts with our business.” Most organisations in India are covered in some form.

Unsure how POSH applies to your specific business structure? Get a quick applicability review from our team before it becomes a compliance gap.