The Employment Exchanges (Compulsory Notification of Vacancies) Act,1959 – Brief Notes

Employment Exchange as per section 2(d) is means a Government maintained an office or established a place for the place of furnishing and collecting information by keeping of registers or otherwise with respect to-

d) persons seeking employment

e) persons who seek to engage employees

f) vacancies to which persons seeking employment can be appointed.

It includes the public sector (Government or department of government, corporation, including a co-operative society, local authority) and private sector (where 25 or more persons are employed) establishments.

According to Section 4, the employer of a private or public establishment shall notify the vacancy to such employment exchange, however, the employer has no obligation to recruit employees through such employment exchange in case of a vacancy. This Act does not apply in the vacancies for the following employment-

(i) in agriculture and. horticulture in any establishment in private sector;

(ii) in domestic service;

(iii) where the period of employment is less than three months;

(iv) to do unskilled office work;

(v) connected with the staff of Parliament;

(vi) proposed to fill through promotion or by absorption of surplus staff;

(vii) which carries a remuneration of fewer than sixty rupees a month.

  • Under this Act, an establishment may be any place of industry, trade, trade, business or occupation. It covers both private and government establishments.

  • In case the local employment exchange has to be notified, it must be done so a week before interviews of the applicants may be conducted whereas for Central employment exchange, the notice must be provided 3 weeks before.
  • It is the responsibility of the employers of every establishment in public sector, under section 5, to provide information regarding any vacancies, present or prospective, to the exchange.
  • Failure to do so is by a fine up to Rs. 250 for the first offence and up to Rs. 500 for the continuous offence.
  • An authorised Officer of the government has the right to access any documents or records that the employer has and is required to furnish under section 5. The officer can carry out inspections at any reasonable time and acquire copies of said documents.