AS | Ankit Sarawagi|Founder, CFOmatrix·August 2026·8 min read | Payroll & Labour Law |
The day you hire your twentieth employee, a quiet compliance switch flips: you now owe a registered Equal Opportunity Policy under the RPwD Act, and most founders have never heard of it until an auditor asks.
This guide covers the whole obligation in plain language: who must frame an equal opportunity policy, what it has to contain, how to register and publish it, and the records and liaison officer that go with it. It also clears up the biggest myth, that private companies must reserve jobs. Start with the summary, then read the section you need.
- When it applies
- Every establishment must publish a policy; the detailed version and registration apply to a private establishment with 20 or more employees.
- Key numbers
- 20+ employees for the full duty. 4% reservation is government-only. 1 liaison officer to appoint.
- Where to register
- With the State Commissioner for Persons with Disabilities (or the Chief Commissioner), plus display on your website or premises.
- What to keep
- A register of persons with disabilities employed, open to inspection on demand.
- Penalty
- Up to ₹10,000 for a first contravention; ₹50,000 to ₹5,00,000 for repeat breaches.
1 Does the equal opportunity policy apply to you?
The Rights of Persons with Disabilities (RPwD) Act, 2016, and its Rules of 2017 place the duty on every “establishment”, which expressly includes private companies, firms and other bodies. The size of your team decides how much you must do, not whether you must do anything.
- 20 or more employees: you must frame and publish the detailed equal opportunity policy, register it with the Commissioner, appoint a liaison officer, and maintain records. This is the line startups cross without noticing.
- Fewer than 20 employees: you still publish an equal opportunity policy, but a shorter one covering the facilities and amenities you provide, the posts identified as suitable, and the manner of selecting persons with disabilities.
The count is a headcount of employees at the establishment, so it moves with hiring, not with who sits on formal payroll versus a vendor’s.
Kaveri Labs grows from 16 to 21 people after a hiring sprint. It has just crossed the 20-employee line. Kaveri now needs the full equal opportunity policy, a named liaison officer, a copy registered with its State Commissioner, and a register of any persons with disabilities it employs. The founder assumed this was a “large company” rule. It is not.
2 What your Equal Opportunity Policy must contain
An equal opportunity policy is not a one-line diversity statement. For a 20-plus establishment, Rule 8 of the RPwD Rules lists what it has to spell out. Cover each of these.
| Item | What to state |
|---|---|
| Facilities and amenities | The facilities and amenities provided so persons with disabilities can perform their duties. |
| Identified posts | The list of posts identified as suitable for persons with disabilities. |
| Manner of selection | How persons with disabilities are selected for the various posts. |
| Training | Post-recruitment and pre-promotion training. |
| Assistive devices | Provision of assistive devices and barrier-free, accessible infrastructure. |
| Support measures | Preference in transfer and posting, special leave, and related accommodations. |
| Liaison officer | The appointment of a liaison officer to look after recruitment and facilities. |
| Grievance route | How a person with a disability can raise a concern and how it is handled. |
3 Register and publish the policy
Framing the policy is half the job. The Act wants it on the record and in the open. The sequence is short, but each step is a distinct obligation.
4 Records, registers and the liaison officer
Two ongoing duties sit under the policy, and both are what an inspector or a due-diligence team will actually test.
The record you must keep
A 20-plus establishment maintains a register of the persons with disabilities it employs. It captures:
- The number of persons with disabilities employed and the date from which each is employed.
- The name, gender and address of each such employee.
These records must be produced for inspection on demand by the authorities under the Act, and you must supply information needed to check compliance. A nil position is fine; the point is that the register exists and is current.
The liaison officer
The liaison officer is the person accountable for making the policy real: overseeing the recruitment of persons with disabilities and the provision of facilities and amenities for them. Name a specific role holder, not “HR” in the abstract, so the responsibility is traceable.
Brewly, a 14-person coffee brand, is under the 20 line. It still publishes a short equal opportunity policy on its careers page covering the amenities it offers, the roles open to persons with disabilities, and how it selects them. When Brewly reaches 20 staff, it adds the fuller policy, names its Head of People as liaison officer, registers the copy with its State Commissioner, and opens the register. Building the short version early makes the upgrade a formality rather than a scramble.
5 Reservation is government-only: the private-sector duty
The most common misconception is that private companies must reserve a share of jobs for persons with disabilities. They do not.
The 4% reservation in Section 34 of the Act applies to government establishments. For the private sector, the RPwD Act takes a different route:
- Frame, publish and register the equal opportunity policy.
- Appoint a liaison officer and maintain records, as above.
- Run a non-discriminatory, accessible workplace, with reasonable accommodation for employees who acquire or disclose a disability.
- Access incentives: the government operates incentive schemes for private employers who provide employment to persons with disabilities, so inclusion can also be a support you claim rather than only a cost.
6 What non-compliance costs
Contravening the Act or its rules carries a fine of up to ₹10,000 for a first contravention. A subsequent contravention attracts ₹50,000 to ₹5,00,000. The fines are modest next to, say, GST exposure, but that is not where the real cost sits.
The bigger cost is reputational and transactional. A missing equal opportunity policy, an unregistered copy, or an empty register is exactly the kind of item an investor’s HR and legal diligence flags, and it can stall a term sheet until you cure it. It is cheap to do right and awkward to fix in a hurry.
7 Your setup checklist
- Count employees at each establishment. At 20, the full duty switches on.
- Frame the equal opportunity policy with all the Rule 8 items: facilities, identified posts, selection, training, assistive devices, support measures and a grievance route.
- Appoint and name a liaison officer in the policy.
- Register a copy with your State Commissioner (or the Chief Commissioner), confirming the state’s current process.
- Publish the policy on your website, or at a conspicuous place if you have none.
- Open and maintain the register of persons with disabilities employed, ready for inspection.
- Review the policy and register annually, alongside POSH.
Not sure which rules apply at your headcount?
Use our free Compliance Applicability Checker: enter your team size, state and set-up, and see exactly which labour, payroll and HR filings you owe now, and which switch on as you grow.
Check my compliances8 FAQs
Which companies must have an Equal Opportunity Policy?
Do private companies have to reserve 4 percent of jobs for persons with disabilities?
Where do we register the Equal Opportunity Policy?
What records must an employer maintain under the RPwD Rules?
Who is the liaison officer under the RPwD Act?
Related guides & templates
POSH compliance: Internal Committee and annual report →
Maternity Benefit Act: what employers must do →
Shops & Establishment registration in India →
Which compliances apply to your company? (free tool) →
AS | Founder, CFOmatrix | Finance Strategy & Compliance CFOmatrix helps Indian startups build finance, tax and compliance functions that stand up to investor due diligence, from process and controls to the filings and the numbers behind them. |
Disclaimer: This article is general information as of August 2026 and is not legal advice. The RPwD Act, its rules, penalties and state-level registration processes can change and vary by location. Confirm your specific obligations with a qualified professional before acting.