Creating a safe and respectful workplace is not optional for employers in India. One of the most important compliance obligations under the Sexual Harassment of Women at Workplace Act is Setting Up an ICC in Company. An Internal Complaints Committee plays a central role in preventing misconduct, addressing grievances fairly, and ensuring legal compliance. Many organisations struggle with the process due to lack of clarity on structure, timelines, and legal expectations.
This guide explains the step-by-step process of setting up an ICC in your company. It is designed for employers, HR professionals, founders, and compliance officers who want a practical and legally sound approach.
Understanding the Legal Requirement to Form an ICC
The Sexual Harassment of Women at Workplace Act 2013 mandates every organisation with ten or more employees to constitute an Internal Complaints Committee. This requirement applies across sectors and includes private companies, public bodies, educational institutions, factories, and non-profit organisations.
Authoritative guidance is available on the website of the Ministry of Women and Child Development, Government of India, which clarifies employer duties and committee responsibilities. Failure to constitute an ICC may result in monetary penalties and reputational harm.
The objective of the ICC is prevention, prohibition, and redressal of sexual harassment. It acts as an internal quasi-judicial body empowered to receive complaints, conduct inquiries, and recommend action.
Setting Up an ICC in Company: Legal Composition Requirements
The law specifies the exact structure of an ICC. Employers must follow these requirements strictly to avoid invalidation of proceedings. An ICC must consist of a Presiding Officer who is a senior woman employee. The committee must include at least two employee members who are committed to women’s causes or have experience in social work or legal knowledge. One external member must also be appointed from an NGO or association familiar with issues relating to sexual harassment.
The external member is crucial for neutrality. Courts have repeatedly emphasised this role while examining ICC validity. Government circulars and training material published by institutions such as the Institute of Company Secretaries of India explain the rationale behind this requirement.
Step One: Identifying Eligible Members
The first practical step involves identifying suitable internal members. The Presiding Officer should be a senior woman employee with credibility and leadership capacity. If no senior woman employee is available, the employer may nominate one from another office or administrative unit. Internal members must demonstrate sensitivity, integrity, and confidentiality awareness. Selection should never be arbitrary. Documenting the rationale for selection helps demonstrate compliance during inspections or litigation. At this stage, many organisations engage a posh consultant to evaluate member suitability and ensure the composition meets statutory standards. This support reduces the risk of technical non-compliance.
Step Two: Appointment of External Member
The external member must have demonstrable experience in social work, women’s rights, or labour law. This individual must not have any conflict of interest with the organisation. Appointment letters should clearly define responsibilities, tenure, confidentiality obligations, and remuneration. Courts have stressed that merely appointing a lawyer without relevant experience does not satisfy the statutory requirement.
Employers should maintain proper records of engagement, credentials, and consent of the external member.
Step Three: Issuing a Formal Constitution Order
Once members are finalised, the employer must issue a formal ICC constitution order. This document should specify the names, roles, and tenure of each member. It should also mention the effective date of constitution. The order must be circulated internally and displayed prominently at the workplace. Transparency helps build employee trust and ensures awareness of grievance redressal mechanisms.
Step Four: Training ICC Members
An ICC cannot function effectively without training. Members must understand procedural fairness, principles of natural justice, evidence handling, and confidentiality. Training also covers interviewing techniques and sensitivity in dealing with complainants and respondents. According to guidance published by government training institutions, untrained ICCs often fail due to procedural lapses. Many organisations schedule a structured posh awareness training program for ICC members during this phase.
Step Five: Drafting ICC Charter and Internal Rules
An ICC should operate under clearly documented internal rules. These rules outline how complaints are received, how inquiries are conducted, and how reports are prepared. The charter should align with statutory timelines. For example, inquiries must generally be completed within ninety days. Reports must be submitted within ten days of completion. Using templates from government publications such as those available on Department of Personnel and Training websites ensures alignment with official interpretation.
Step Six: Integrating ICC with POSH Policy
The ICC cannot function in isolation. Its role must be clearly reflected in the organisation’s POSH policy. The policy should mention ICC composition, contact details, and complaint process. This integration ensures employees know where to report concerns and how the committee functions. It also protects the organisation during audits or inspections.
Step Seven: Communication and Employee Awareness
Constituting an ICC is not enough. Employees must be informed about its existence and purpose. Employers should circulate policy documents and display ICC details at prominent locations. Awareness initiatives help normalise reporting and discourage inappropriate conduct. Many organisations include awareness sessions as part of onboarding and annual compliance calendars. Some employers also implement workplace anti-harassment training towards the later stage of ICC rollout to reinforce behavioural expectations and reporting culture.
Step Eight: Record Keeping and Documentation
Proper documentation is critical. Employers must maintain records of complaints received, actions taken, inquiry reports, and annual summaries. The law requires organisations to submit annual reports to the District Officer. Information portals managed by state governments provide guidance on reporting formats and timelines. Incomplete documentation is one of the most common compliance failures identified during inspections.
Step Nine: Periodic Review of ICC Functioning
An ICC should be reviewed periodically to ensure continued effectiveness. Changes in personnel or organisational structure may require reconstitution. Annual reviews also help identify training gaps or procedural improvements. Employers should document reviews and corrective actions.
Common Errors to Avoid While Setting Up an ICC
Many organisations unintentionally undermine their compliance by appointing an incomplete committee or failing to include an external member. Others overlook training requirements or fail to issue a formal constitution order. Another frequent error is treating the ICC as a symbolic body rather than an operational committee. Courts have consistently ruled against employers who fail to empower the ICC properly.
Conclusion
Setting Up an ICC in Company is a critical compliance responsibility and a reflection of organisational values. A properly constituted and trained ICC protects employees, strengthens trust, and shields employers from legal exposure. When the process is followed step by step, organisations create a safer environment and demonstrate accountability. An effective ICC is not merely a legal requirement. It is a foundation for dignity, fairness, and responsible governance in the workplace.
