Employment Exchange Laws

Introduction

The primary objective of the Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 (“EE Act”) is to require the mandatory reporting of job vacancies to employment exchanges. Employers must report all job openings, except for those in agriculture, unskilled office work, employment duration below three months and domestic services. Additionally, employer is required to submit regular reports of headcount of employees. The EE Act is applicable throughout India.

Applicability

According to section 2(g) the EE Act applies to private sector establishments with 25 or more employees.

Notification of Vacancies under the EE Act

Section 4(4) outlines that an employer’s responsibility is confined to informing the employment exchange about job vacancies. While the Employment Exchanges Act requires employers to announce these vacancies, it does not compel them to recruit through the employment exchange. Employers who are required to submit returns under the Act must provide these to the local employment exchange.

1. Quarterly Return (ER-I) – due within 30 days from end of quarter of a calendar year i.e., 30^th Jan, 30^th April, 30^th July and 30^th
2. Biennial Return (only Haryana) – As per the recent letter from Haryana government No. EMI/DGE/2024/10294-316 dated 30.08.2024 for period based on the statistical return ER-I of 30.09.2023 the date of submission is 30.09.2024.

Penalties

According to Section 7 of the EE Act, if an employer to whom this Act applies fails to notify the prescribed employment exchanges about any vacancy, they are punishable with: -

• For first offence — with fine which may extend to INR.500.
• For every subsequent offence — with fine which may extend to INR.1000.

If anyone intentionally refuses or neglects to provide the required information or return, knowingly submits false information or returns, refuses to answer necessary questions, provides false answers to necessary questions, or intentionally obstructs access to relevant records or documents, or the right of entry of authorized personnel as per Section 5, they are punishable with:

• First offence — with fine which may extend to INR.250.
• For every subsequent offence — with fine which may extend to INR.500.

Conclusion

The EE Act plays a crucial role in the Indian labour market by promoting transparency and accessibility in job opportunities. By requiring employers to notify vacancies to employment exchanges, the EE Act helps in the efficient allocation of human resources and supports the government’s efforts to reduce unemployment. The EE Act’s provisions ensure that job seekers have access to a wide range of employment opportunities, while employers can find suitable candidates more effectively. Overall, the EE Act contributes significantly to the socio-economic development of the country by fostering a more organized and equitable job market.