Employment Exchanges (Compulsory Notification of Vacancies) Act: An Overview

The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 primary goal is to mandate the mandatory reporting of job openings to employment exchanges. Employers are obligated to report all openings to employment exchanges, with the exception of those in unskilled categories, temporary openings, and openings that are planned to be filled by promotions. They must also submit regular staff strength reports. The Act applies to all of India.

What is the meaning of Employment Exchange?

An office of the federal or state government is referred to as an employment exchange because it gathers and provides information about potential employers, open positions, and job seekers, making it easier for job seekers to find appropriate employment and for business to locate qualified workers.

Application of the Act

The Act applies to employers in both public and private sector businesses. The Act is applicable to businesses with 25 or more employees that are engaged in non-agricultural operations. States and Union Territories are accountable for enforcing the Act. For this reason, the majority of the States and Union Territories have established unique enforcement mechanisms. Therefore, the Act shall apply to the following category of vacancies:

• If you have a job in a private sector company that isn't one that involves operating farm or agricultural machinery and is somehow connected to agriculture;

• Any occupation providing household support;

• Any work whose overall length is shorter than three months;

• Any position requiring clerical labour without special training;

• Any position involving the Parliamentary staff.

Non- Applicability of the Act

Unless the Central Government specifies otherwise by publishing a notice in its Official Gazette, the Act shall not apply to the following positions:

• Positions that are suggested to be filled by promotion;

• Vacancies that will be filled by adding more employees from any branch or department of the same organization Vacancies that will be filled by adding more employees from any branch or department of the same organization;

• Vacant positions that are intended to be filled in accordance with the findings of any test or interview performed by, or on recommendations from, any independent body, such as the Union or State Public Service Commission and comparable institutions.

• vacant positions in jobs with monthly salaries of less than 60 rupees.

Provisions under the Act

There are only 10 Sections in the Act.

Section	Content
Section 1	Short title, extent and commencement.
Section 2	Definitions
Section 3	Act not to apply in relation to certain vacancies
Section 4	Notification of vacancies to employment exchanges.
Section 5	Employers to furnish information and returns in prescribed form.
Section 6	Right of access to records or documents.
Section 7	Penalties.
Section 8	Cognizance of offences.
Section 9	Protection of action taken in good faith.
Section 10	Power to make rules.

Notification of Vacancies under the Act

According to Section 4 of the Act, job openings must be reported to the employment exchange. Before filling any vacancies, the employer in every public sector business is obligated to inform the designated employment exchanges.

The Section further mandates that, starting on the date specified in the notification published by the relevant Government in the Official Gazette, every establishment in the private sector, or every establishment belonging to any class or category of establishments in the private sector, must notify the prescribed employment exchanges.

According to Section 4(3), the details of jobs with open positions and the method of communication shall follow any regulations that may be established. According to Section 4(4), the employer's only responsibility is to inform the employment exchange about the opening. The mere fact that the vacancy has been announced as required by this Act does not obligate the employer to fill it by hiring anyone through employment exchange.

Vacancies: Employment Exchanges

According to Rule 3 of The Employment Exchanges (Compulsory Notification of Vacancies) Rules, 1960, the Central Employment Exchange or Local Employment Exchange, as applicable, must be notified of any vacancies.

The Central Employment Exchange is the Employment Exchange set up by the Ministry of Labour and Employment of the Government of India, to which the following openings must be announced:

• Vacancies for technical and scientific posts with a basic salary of at least Rs. 1,400 per month in organizations where the Central Government is the competent government under the Act;

• Any positions that a business may desire to post on employment websites outside of the State or Union Territory in which the business is situated.

The phrase "Local Employment Exchange" refers to the employment exchange (the Central Employment Exchange) that has been declared to have jurisdiction over the region where the establishment in question is located or over particular classes or categories of establishments of vacancies by the State Government, the Administration, or the Union Territory. All job opportunities must be reported to these regional employment exchanges, with the exception of those that must be reported to the Central Employment Exchange.

Right of Access

The appropriate government official or any individual he has given written permission to inspect any pertinent record or document maintained by an employer who is required to furnish information or returns under Section 5 of this Act. Additionally, this officer is permitted to access any location at any reasonable time where he believes the record or document may be located, investigate the location, collect copies of any relevant records or documents, and ask any questions necessary to gather the data required by the Section 6.

Conclusion

In the corresponding year, The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959, was passed. Employers are required to make arrangements for the mandatory notice of open positions to employment exchanges. Furthermore, for the rendering of returns pertaining to the employment situation. This Act becomes operative as of May 1st, 1960. All businesses in the public and private sectors, barring those in agriculture.

FAQs

Q1. How many total section are there in the Act?

Ans. There are total 10 sections in the act.

Q2. When was The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 came into force?

Ans. The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 came into force on 1st day of May, 1960.

Q3. Which sections deals with penalty provisions?

Ans. Section 7 deals with the penalty provisions under the act.

Q4. What was the reason behind to enact the Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959?

Ans. The rationale behind the legislation is to provide for the compulsory notification of vacancies to employment exchanges.