NO RENEWAL OF YOUR BUSINESS LICENSE IF YOU FAIL TO CONSTITUTE INTERNAL COMPLAINTS COMMITTEE (IC) UNDER POSH- SAYS SUPREME COURT
AURELIANO FERNANDES V. STATE OF GOA & ORS.,
SUPREME COURT ORDERS A TIMELINE TO HAVE A FUNCTIONAL INTERNAL COMMITTEE (IC) UNDER THE POSH ACT
INTERNAL COMPLAINTS COMMITTEE (IC) AS MANDATED UNDER SECTION 4 OF THE POSH ACT
On August 13, 2025, the Supreme Court, in its suo motu matter Aureliano Fernandes v. State of Goa & Ors., directed that all States and Union Territories must complete a district-level survey within six weeks (i.e., by around September 24, 2025) to verify whether every workplace—government and private—has constituted an Internal Complaints Committee (IC) as mandated under Section 4 of the POSH Act
The apex court also warned that non-compliant employers could face consequences, including non-renewal of business licenses.
WHAT EMPLOYERS SHOULD DO NOW
Ensure ICs are constituted if not already done, especially if you’re in smaller organizations with ≥10 employees.
Provide full cooperation if surveyed by local authorities (Labour Dept., DCs, etc.).
Maintain documentation and upload data to the SheBox portal as required.
Be prepared for enforcement—business license renewal may hinge on proof of compliance.
Detailed disclosures on POSH compliance in their Board’s Report
As of July 14, 2025, the Ministry of Corporate Affairs now mandates that companies include detailed disclosures on POSH compliance in their Board’s Report. This includes:
Number of complaints received
Number resolved
Number unresolved for over 90 days
Gender composition (women, men, transgender employees)
R V SECKAR , FCS , LLB 79047 19295
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