PoSH for Startups: A First-Time Founder's Checklist
The most common thing first-time founders say when they first hear about PoSH compliance is: “I thought that only applied to big companies.” It does not. If you have 10 or more employees — full-time, part-time, contract, intern, or remote — the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 applies to you. The threshold is 10 people. Not 50. Not 100. Ten.
“Seed stage or Series C — the Act doesn’t care. 10 employees is the threshold. No exceptions.”
When Does PoSH Apply to You?
Section 4 of the PoSH Act requires every employer with 10 or more employees to constitute an Internal Complaints Committee. This obligation arises the moment your headcount crosses that number — not when you raise your Series A, not when you start generating revenue, not when your investor asks you to get compliant during due diligence.
The headcount count is broader than your payroll. Under Section 2(e), “employee” includes any person employed at a workplace for any work on a regular, temporary, ad hoc, or daily-wage basis, whether directly or through an agent, including contract workers, interns, research scholars, and apprentices. If you have five full-time employees, four contractors, and two long-term interns — you have 11 employees for PoSH purposes, and the Act applies.
What You Need: The Five Elements
PoSH compliance has five distinct components, all of which are mandatory:
- IC constitution. A formally constituted Internal Complaints Committee with a woman Presiding Officer, at least two other members, and one qualified External Member. Constituted by a formal written order from the employer.
- Qualified External Member.Someone from an NGO or with documented experience in women’s causes or employment law — not a friend, a CA, or a generic legal retainer who agreed to put their name on the document.
- PoSH policy document.A written policy covering the definition of sexual harassment, the IC’s composition and contact details, the complaint process, confidentiality obligations, and consequences. Distributed to all employees and displayed in the workplace.
- Annual training. Documented training for all employees covering the mandatory modules — conducted at least once a year, with attendance records.
- Annual report. Filed with the district officer every year, covering complaints received, disposed of, and pending. Even if no complaints were received, a nil-report must be filed.
The Founder’s Compliance Checklist
The Cost Reality
One of the most persistent misconceptions is that PoSH compliance requires a dedicated legal team or a prohibitively expensive retainer. It does not. For a 10-30 person startup, the practical costs are: a one-time policy drafting fee, sourcing and formalising an External IC Member, and an annual training session. POSH360’s Starter plan bundles all three from ₹42,000/year plus a one-time ₹10,000 setup fee.
One cost stays separate regardless of which platform you use: your plan fee covers sourcing and formalising your External IC Member, but any statutory/sitting fees or allowances payable directly to the External Member for attending inquiry proceedings (as permitted under the PoSH Rules) are separate, subject to the experience and availability of such member, and may vary by case. The same is to be borne by your organisation — not a platform subscription line item.
The cost of non-compliance is substantially higher. Beyond the direct fines (up to ₹1,00,000 under the 2024 amendment), non-compliance during a funding due diligence is increasingly a red flag with institutional investors. Several VC firms have begun adding PoSH compliance certification as a condition precedent to investment in Seed and Series A rounds.
The Timeline: How Long Does It Take?
Most startups can achieve full PoSH compliance within two weeks if they work with a structured partner. The critical path is typically the External IC Member sourcing — which, without a pre-vetted network, can take four to six weeks. With POSH360’s network, it takes 24 to 48 hours. Everything else — policy drafting, IC constitution, training, and annual report — can be done in parallel once the External Member is secured.
Work through the eight-item checklist above. For each item you cannot tick off, you have a compliance gap. Identify the gaps, prioritise the External Member sourcing (since it is the longest-lead item), and start the process this week. If you have been non-compliant since your headcount crossed 10, earlier action reduces your exposure — waiting makes it worse.
Ready to get compliant?
Most startups can be fully compliant in two weeks. POSH360's startup plan covers all eight checklist items — start with the free audit.
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