POSH Act Compliance in 2026: Applicability, New MCA Disclosures, and What Delhi NCR Businesses Need to Know: Is Your Delhi NCR Business Compliant?
Workplace safety is no longer just an HR “good-to-have”—it is a strict regulatory mandate. With the Supreme Court ordering district-wise compliance surveys in late 2025 and the Ministry of Corporate Affairs (MCA) tightening disclosure norms, businesses in Delhi NCR are under the scanner.
As a Chartered Accountant practicing in Noida, I often see startups and established private limited companies treat the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH) as a mere formality. This is a dangerous oversight.
This guide breaks down the applicability of the POSH Act and the critical updates for FY 2025-26 that every Director, CFO, and Business Owner must know.
1. Who Does the POSH Act Apply To? (It’s Broader Than You Think)
A common myth is that the POSH Act only applies to large corporates. In reality, the definition of “Applicability” is extremely wide.
The “Employee” Definition:
The Act protects every woman visiting or working in your premises. It covers:
- Permanent, temporary, and ad-hoc employees.
- Interns, trainees, and apprentices.
- Contract labourers and consultants.
- Volunteers and probationers.
The “Workplace” Definition:
Post-COVID, the definition of “workplace” has evolved legally. It is not limited to your registered office in Noida or Delhi. It includes:
- Any place visited by the employee during employment (e.g., client sites, vendor meetings).
- Transportation provided by the employer.
- Work-from-home setups and telecommuting locations.
2. The “10-Employee” Threshold: ICC vs. LCC
The compliance requirement changes based on your staff strength, but the law applies to everyone.
| Feature | Organizations with <10 Employees | Organizations with 10+ Employees |
| Committee | Local Complaints Committee (LCC) | Internal Complaints Committee (ICC) |
| Who Manages? | The District Officer (Civil Admin) | You (The Employer) |
| Your Duty | Forward complaints to the LCC. | Constitute an ICC via written order. |
Critical Note for Delhi NCR Startups: Even if you have 8 employees, you are subject to the Act. You must know the contact details of the LCC/District Officer in your area (e.g., Gautam Buddha Nagar or Gurugram District Administration) to assist an aggrieved employee.
3. Major Updates & Legal Amendments (2025-2026 Context)
Compliance has become stricter due to recent interventions:
A. New MCA Disclosure Requirements (May 2025 Notification)
The Ministry of Corporate Affairs amended the Companies (Accounts) Rules, 2014. Your Board’s Report (attached to the Financial Statements) must now disclose:
- Total number of complaints received during the year.
- Number of complaints disposed of.
- Number of cases pending for more than 90 days.
Implication: As your CA, I cannot file clean financial statements if these disclosures are missing or if the numbers suggest non-compliance.
B. The Supreme Court on ICC Jurisdiction (Dec 2025)
In a landmark clarification (Dr. Sohail Malik v. Union of India), the Supreme Court ruled that an aggrieved woman can file a complaint with her own workplace’s ICC, even if the harasser belongs to a different department or organization.
- Scenario: If your employee is harassed by a vendor or a client, your ICC has the jurisdiction to investigate. You cannot wash your hands of it.
4. Key Compliance Checklist for FY 2025-26
To avoid penalties (which start at ₹50,000 and can escalate to cancellation of your business license), ensure the following:
- Draft a POSH Policy: It must be gender-neutral (recommended) or compliant with the Act, and circulated to all staff.
- Constitute the ICC: If you have 10+ staff, form the committee. It must include:
- A Presiding Officer (Senior Woman Employee).
- Two employee members committed to the cause.
- One External Member (from an NGO or a lawyer familiar with the Act). Note: Many firms fail here.
- Display Notices: Put up posters in your office (and on your company Intranet) detailing the penal consequences of harassment and ICC contact details.
- Annual Filing: The ICC must submit an Annual Report to the District Officer by January 31st of the following year.
5. Why Delhi NCR Businesses Must Act Now
Districts like Gurugram and Noida have active Local Complaints Committees and are aggressive about compliance surveys. The “She-Box” (Sexual Harassment electronic Box) portal allows women to file complaints directly to the Ministry, which then routes them to your ICC. If your ICC is not formed, you are immediately flagged for non-compliance.
Conclusion
POSH compliance is not just about avoiding fines; it is about building a safe, reputationally sound business. Ignorance of the law is no defense, especially with the new detailed reporting requirements in your balance sheet.
Need help structuring your ICC or drafting your POSH Policy?
At Kunal Kapoor & Associates, we assist businesses in Delhi NCR with end-to-end regulatory compliance, ensuring your focus remains on growth, not litigation.
Contact us today for a compliance audit.
