POSH compliance for restaurants: what the law requires
Under India's POSH Act 2013, any workplace with 10 or more employees — including restaurants — must constitute an Internal Committee (IC), adopt a POSH policy, run awareness sessions and file an annual report. Non-compliance carries a fine up to ₹50,000, rising to licence cancellation on repeat offences.
Does my restaurant need a POSH Internal Committee?
If your restaurant employs 10 or more people at a location — counting all staff, not just permanent ones — you must constitute an Internal Committee under Section 4 of the POSH Act, 2013. The count includes kitchen, service and management staff.
Each location with 10+ employees needs its own IC, chaired by a senior woman employee and including an external member from an NGO or with relevant experience.
What does a compliant POSH setup include?
A compliant setup has four parts: a written POSH policy, a properly constituted Internal Committee, employee awareness and IC-member training, and an annual report filed with the district officer. A displayed policy and a known complaint channel are the visible minimum.
Missing any one part leaves you exposed even if the others are in place — the obligations are cumulative.
What are the penalties for POSH non-compliance?
Failure to constitute an IC or comply with the Act attracts a fine of up to ₹50,000 under Section 26. A repeat offence can double the penalty and lead to cancellation or non-renewal of the business licence or registration.
Beyond fines, non-compliance weakens your position in any complaint and exposes the business to reputational and civil risk.
Frequently asked questions
Do part-time and contract restaurant staff count towards the 10-employee threshold?
Yes. The threshold considers all employees at the workplace regardless of employment type, so kitchen, service and contract staff all count.
Who must be on the Internal Committee?
The IC is chaired by a senior woman employee, includes at least two employee members committed to the cause, and one external member (from an NGO or with relevant experience).
Is a POSH policy alone enough?
No. A policy is one of four cumulative obligations — you also need a constituted IC, training/awareness, and the annual filing.
What if my restaurant has fewer than 10 employees?
You are not required to form an Internal Committee, but complaints in smaller workplaces go to the district-level Local Committee (LC), and you must still provide a safe workplace and a route to complain.
How often must the Internal Committee be refreshed?
IC members are appointed for a term not exceeding three years, after which the committee must be reconstituted. Keep records of appointments and any mid-term replacements.
Does the POSH annual report have to be filed even with no complaints?
Yes. The IC files an annual report with the district officer covering cases received and disposed — including a nil report when there were no complaints.
This guide is general information for Indian restaurants, not legal advice. Rules change and specifics vary by state and situation — confirm with a qualified professional. EatSafe Legal connects you to verified CAs and lawyers when you need one.
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