In 2025, Internal Committees (ICs) are under more scrutiny than ever. Whether you’re in manufacturing, e-commerce, or financial services, your workplace culture and compliance standards are being closely watched not just by regulators, but by your own employees. Yet many companies still make the same common mistakes with their IC setup, handling, or approach. These mistakes aren’t just technical; they affect real people, trust, and even business growth.
This blog lists 9 common IC mistakes seen in today’s corporate setups, with practical fixes you can apply immediately. Whether you’re an HR head, compliance officer, or business owner, understanding these issues can help you prevent unnecessary risks and strengthen your workplace culture.
1. 85% of Companies Form ICs Only on Paper (Mistake #1)
In many companies, Internal Committees exist just to tick a box for audits, workplace policy, or POSH compliance. There are no meetings, no reviews, no communication with employees. This creates a false sense of security and compliance.
Why this matters:
- Employees don’t know where to go with complaints
- You risk legal non-compliance under POSH Act
- Internal trust in leadership erodes
What to do instead:
- Organize quarterly IC meetings with proper documentation
- Display IC member names and contacts on internal boards and systems
- Keep digital and hard copies of IC formation records
2. 60% of ICs Miss This Critical Member (Mistake #2)
Many committees skip mandatory roles, like not appointing a senior woman as the Presiding Officer or missing an external member. This invalidates the committee and puts companies at serious risk during HR audits or legal inspections.
What to do instead:
- Review IC formation yearly with your HR/legal team
- Ensure the Presiding Officer is a senior woman employee
- Appoint an external member with experience in social work, POSH, or law
Real-world example: A BFSI firm was fined in 2023 for forming an IC without an external member. The entire investigation done by the IC was deemed invalid.
3. 7 in 10 IC Members Don’t Get Any Training (Mistake #3)
Handling complaints about harassment or misconduct requires more than good intent it needs clarity, confidence, and legal awareness. Unfortunately, most IC members are never trained on how to deal with sensitive matters.
What to do instead:
- Conduct IC training at least once a year as part of your corporate training program
- Include scenario-based learning and mock inquiries
- Train on documentation, neutrality, and evidence handling
Extra Tip: Soft skills like non-judgmental listening and conflict handling are equally important as legal knowledge.
4. External Member Just for Namesake? (Mistake #4)
Choosing a relative, consultant, or passive participant as the external member is another common mistake. ICs need independent voices.
What to do instead:
- Choose someone with POSH training or employment law experience
- Ensure they attend all meetings and sign investigation reports
- Make them part of training and awareness sessions
Why it matters: The external member ensures neutrality and gives credibility to the committee’s decisions.
5. Confidentiality Breaches Are Still Happening (Mistake #5)
Many companies still don’t take confidentiality seriously during IC processes. Leaked names, informal discussions, or shared emails break the trust of both complainant and accused.
What to do instead:
- Conduct regular awareness on confidentiality protocols
- Use password-protected files and secure storage systems
- Don’t discuss cases casually, even within the IC
Remember: Breaching confidentiality is punishable under the law and can damage your brand image permanently.
6. Delays & Bias: The Silent Trust Killers (Mistake #6)
Prolonged investigations or favoritism especially towards senior employees kills employee morale and raises doubts about fairness.
What to do instead:
- Follow the 90-day inquiry closure deadline
- Use third-party observers in complex or sensitive cases
- Avoid assigning cases to members with a conflict of interest
Employee Perspective: “If ICs can’t act on time, why would I report next time?”
7. Closure Isn’t the End (Mistake #7)
Once a complaint is resolved, many companies move on without offering support to the individuals involved. This creates long-term emotional stress and affects team performance.
What to do instead:
- Offer counselling, stress support, or wellness check-ins
- Monitor the workplace dynamics post-inquiry
- Check back with the complainant after 30–60 days
Long-Term Benefit: It shows the company truly cares not just about rules, but about people.
8. Ignoring Anonymous Complaints = Risk (Mistake #8)
Some complaints arrive without names. These are often ignored, but ignoring repeated anonymous feedback can allow real issues to fester.
What to do instead:
- Log all anonymous complaints and look for patterns
- Have a defined policy on handling unsigned complaints
- Encourage safe reporting without retaliation
Real-world risk: In 2024, a retail company faced protests after ignoring repeated unsigned complaints. They were later found to be true.
9. Annual IC Reports Still Missing? (Mistake #9)
Many organizations skip or delay the mandatory IC Annual Report to the District Officer. This is a legal breach under POSH law.
What to do instead:
- Mark the IC report in your yearly compliance calendar
- Include details like training done, number of cases, actions taken
- Keep the report format ready in advance to avoid delays
Bonus: IC reports also help in internal review and culture-building. They support documentation for HR audits and employee safety protocols.
Bonus: When Should You Bring in External Experts?
Not every case or committee can handle everything alone. Bringing in outside professionals can save time, avoid bias, and prevent compliance errors.
Bring experts when:
- IC members haven’t received updated training
- Senior leadership is involved in the complaint
- The case could attract media or legal attention
Benefits of External Support:
- Objective, legally sound guidance
- Templates and policy formats ready to use
- Better trust from employees and management
2025 IC Readiness Checklist ✅
| Task | Status |
| IC structure and members verified | ✅ |
| Training conducted this year | ✅ |
| Policy circulated to all employees | ✅ |
| External member is active | ✅ |
| Reports submitted to District Officer | ✅ |
| Records securely stored | ✅ |
| Employees aware of IC process | ✅ |
| Quarterly meetings conducted | ✅ |
| Case timelines respected | ✅ |
Final Word: Strong ICs Reflect Strong Leadership
A well-functioning Internal Committee is not just about avoiding fines. It’s about building a work culture where people feel safe, heard, and respected. For companies in manufacturing, BFSI, or e-commerce, a trusted IC can reduce attrition, improve engagement, and reflect positively on your leadership.
If you’ve identified any of these 9 mistakes in your current setup, now is the time to fix them.
How Eclatmax Helps You Avoid These Mistakes
At Eclatmax, we support you in every step of the IC journey:
- Custom IC & POSH Trainings: Tailored for your industry and team size
- Policy Review & Drafting: Ensuring legal compliance with practical implementation
- IC Coaching: Role-readiness for each committee member
- Culture Consulting: To build trust, safety, and accountability across levels
📧 Want to know how ready your IC is? Book a free 30-minute consultation with us