Understanding the Employment Exchanges Act: What Are Your Obligations and Risks?

Knowledge Update: Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959, and Employment Exchanges (Compulsory Notification of Vacancies) Rules, 1960.

Applicability: Any industry, trade, business, office, or occupation in the private sector employing 25 or more persons to do any work.

Duties and Obligations:
a) To notify any vacancy in any employment, in the prescribed format, to the jurisdictional Employment Exchanges at least 15 days in advance of filling up the vacancy.
b) To intimate the result of selection to the Employment Exchanges within 15 days of such selection.
c) To furnish a quarterly return in Form ER I, within 30 days from the closure of March, June, September, and December, and also a return in Form ER II, once in two years, within 30 days from the closure of the year. Please note that the submission of ER-II has been suspended as per the latest information received from the Bangalore circle. Since it is a central Act, it is believed that all other states must have withdrawn the ER-II. Kindly cross-verify at your circle also.
d) There is no obligation upon the employer to recruit any person sent by the Employment Exchange to fill any vacancy.

Consequence of Non-Compliance of the Requirements: Failure to notify any vacancy or failure to furnish any information or return may attract a fine ranging from Rs. 250/- to Rs. 1,000/-.

Location: Bengaluru, India

Tags: City-India-Bengaluru, Country-India

The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959, and its corresponding rules impose specific obligations on employers in the private sector. Here is a practical guide to understanding and complying with these regulations:

- Applicability: The Act applies to any industry, trade, business, office, or occupation in the private sector that employs 25 or more persons.

- Duties and Obligations:
a) Notify any job vacancy to the relevant Employment Exchanges in the prescribed format at least 15 days before filling the vacancy.
b) Inform the Employment Exchanges of the selection result within 15 days.
c) Submit a quarterly return in Form ER I within 30 days after the closure of March, June, September, and December. Note: ER II submission has been suspended; verify locally for confirmation.
d) Employers are not obligated to hire individuals recommended by the Employment Exchange.

- Consequences of Non-Compliance:
Failure to notify vacancies or submit required information may lead to fines ranging from Rs. 250 to Rs. 1,000.

It is crucial for employers in Bengaluru, India, to adhere to these legal requirements to avoid penalties and ensure compliance with the law.