The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 is a law in India that requires certain employers to notify job openings to government employment exchanges.
What is an Employment Exchange?
An Employment Exchange is a government office, either central or state-run, that acts as a bridge between job seekers and employers. It functions by:
- Collecting information: They gather details about available jobs from employers and prospective employees seeking work.
- Furnishing information: This information is then disseminated to help job seekers find suitable positions and employers locate qualified candidates.
Objectives
- Matching Skills and Needs: By having a centralized database, Employment Exchanges aim to efficiently match job seekers’ skills with employer requirements.
- Labor Market Insights: The data collected by the exchanges provides valuable insights into employment trends and skills gaps in the market.
- Manpower Planning: This information can be used by the government and other stakeholders to develop effective manpower planning strategies.
Applicability
The Act applies to:
- Every public sector establishment.
- Private sector establishments (excluding agriculture) that employ 25 or more persons.
The Act does not apply to:
- Agriculture: Excluded (including horticulture)
- Domestic Services: Not covered
- Short-Term Jobs: Positions lasting less than 3 months are exempt
- Unskilled Work: Vacancies for unskilled labour are not mandated
- Employment Connected with Staff of Parliament: Not covered
Key Responsibilities
Employers: Public and private sector establishments (except for those mentioned above with 25 or more employees) must:
- Notify the Employment Exchange about any job openings before filling them.
- Submit information and returns in prescribed formats (Forms ER-1 and ER-2) regarding existing and upcoming vacancies.
Government: The appropriate government (central or state) is responsible for:
- Maintaining and operating Employment Exchanges.
- Publishing notifications about vacancies in the official gazette.
Definitions
Appropriate Government: This refers to the relevant government authority depending on the establishment type:
- Central Government entities like railways, mines, or oilfields.
- State Government for other establishments within its jurisdiction.
Establishment: Any office, workplace, or location where an industry, trade, or business operates.
Employment Exchange: A government office dedicated to gathering and providing job market information.
Compliance Requirements
Notification of Vacancies (Section 4)
- Employers in both public and private sectors across all states are obligated to notify the Employment Exchange about any job openings they have.
- This notification needs to be submitted before filling the vacancy.
Furnishing Information and Returns (Section 5)
- Public and private sector employers must provide information about current and upcoming vacancies using prescribed forms (ER-1: Quarterly Returns & ER-2: Biennial Returns).
- The specific government authority will notify these vacancies in the official gazette.
Penalties for Non-Compliance
- Filling Vacancies without Notification: Fines range from ₹500 for the first offense to ₹1000 for subsequent offenses.
- Failure to Furnish Information: Fines range from ₹250 for the first offense to ₹500 for subsequent offenses.
Right of Access to Records
- Government officials or authorized personnel have the right to access relevant documents and records held by employers regarding vacancy notifications and returns.
- They can also visit company premises during reasonable hours to inspect these records.
- This access allows for verification and ensures compliance with the Act.
Key Forms
- Notification of Vacancy (Section 4): Separate forms exist for different types of job openings.
- Quarterly Returns (Form ER-1) (Section-5): Employers submit information about current and upcoming vacancies every quarter.
- Biennial Returns (Form ER-2) (Section 5): These returns provide broader employment data every two years.
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