IndiaMy employer hasn't constituted an ICC. What penalty do they face?
An employer who fails to constitute an Internal Complaints Committee (ICC) faces a fine of up to ₹50,000 for the first offence, and higher penalties—including cancellation of registration or de-recognition—for subsequent violations under the POSH Act.
What the Law Says
The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act) makes it mandatory for every employer to constitute an Internal Complaints Committee (ICC) at each office or branch employing 10 or more persons.
Section 4(1) of the POSH Act states that 'every employer shall, by an order in writing, constitute an Internal Complaints Committee at each office or branch...'. This obligation applies regardless of whether harassment complaints have been made.
Failure to constitute the ICC is a punishable offence under Section 14 of the Act. The law prescribes progressive penalties: a fine of up to ₹50,000 for the first violation; for repeated non-compliance, the fine may extend to ₹1 lakh, and the employer may also face cancellation of their business license, registration, or de-recognition by the concerned authority.
The rules further clarify that the ICC must be constituted within three months of the Act coming into force (i.e., December 9, 2013), or within three months of reaching the threshold of 10+ employees — whichever is later.
Statutory TextEvery employer shall, by an order in writing, constitute an Internal Complaints Committee at each office or branch...
— Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, s. 4(1) — Constitution of Internal Complaints Committee
Statutory TextWhoever fails to comply with the provisions of section 4... shall be punishable with a fine which may extend to fifty thousand rupees...
— Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, s. 14 — Penalty for non-compliance
What to Do
Immediately issue a written order constituting the ICC, naming its members (including a presiding officer who is a woman employed at senior level, two employee members, and one external member from an NGO or women’s rights body).
Display the ICC’s constitution order prominently at the workplace and share contact details with all employees.
File an annual report with the District Officer as required under Section 21 of the POSH Act.
If penalised, appeal the fine before the appropriate authority within 30 days of the order.
Seek legal assistance to ensure compliance with the POSH Rules, 2013 — especially regarding member eligibility, term limits (3 years), and training requirements.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.