THE EMPLOYMENT EXCHANGES (COMPULSORY NOTIFICATION OF VACANCIES) ACT, 1959

INTRODUCTION:

According to its preamble, this Act provides for the compulsory notification of vacancies to employment exchange. The main objects of the act are as follows: (a) to help unemployed, both skilled and semi-skilled, to seek suitable employment, (b) to enable government to formulate its policy of training in technical education, and (c) to access the employment potential in various categories of establishments and to have a better appreciation of the labour marked. Application of the Act: The Act covers the employers in establishments both in public and private sectors. It is applicable to establishments which are engaged in non-agricultural activities and employing 25 or more workers. The Act shall not apply to certain type of vacancies, namely: (a) any employment in agriculture (including horticulture) in any establishment in private sector other than employment as agricultural or farm machinery operatives; (b) any employment in domestic service (c) any employment for a period which is less than three months. (d) any employment to unskilled office work. (e) any employment connected the staff of Parliament. The Act shall also not apply in relation to the following vacancies unless the Central Government otherwise directs by notification in Official Gazette: (a) vacancies which are proposed to be filled through promotion or by absorption of

surplus staff or on the result of any examination conducted or interview held by any

independent agency such as Union or State Public Service Commission; (b) vacancies in an employment which carriers a remuneration of less than sixty rupees a month. IMPORTANT DEFINITIONS Employee : Any person who is employed in any establishment to do anywork for remuneration. Employer. Any person who employs one or more other persons to do any work in an establishment for remuneration and includes any person entrusted with the supervision and control of employees in such establishment. Employment Exchange. It means any office or place established and maintained by the Government for the collection and furnishing of information, either by the keeping of registers or otherwise in respect of: (i) person who seeks to engage employees; (ii) persons who seek employment; and (iii) vacancies to which persons seeking employment may be appointed. Establishment. It means any (a). office or (b) any place where any industry, trade, business or occupation is carried on. Keeping in view the object of the Act, the definition of the term 'establishment' must be understood in its widest sense. The presence or absence of profit motive is not relevant in determining whether a particular organisation is an establishment as understood under the Act. Establishment may be either in the public sector or in the private sector. Establishment in the public sector means an establishment owned, controlled or managed by. (a) the Government (b) a Government company (c) local authority and (d) a corporation establishment by or under a Central, Provincial or State Act.

Establishment in private sector means an establishment which is not an establishment in public sector and where ordinarily 25 or more persons are employed to work for remuneration. Unskilled Office Work. It means work done in any establishment by .any of the following category of employees, namely, 1. Daftrai 2. Jamardar, orderly and peon 3. Dusting man or farrash 4. Bundle or record lifter 5. Process server 6. Watchman 7. Sweeper 8. Any other employees doing any routine or unskilled work which the Central Government may by notification in the Official Gazette, declare to be unskilled office work. NOTIFICATION OF VACANCIES TO EMPLOYMENT EXCHANGES Section 4 of the Act requires the employer of an establishment in public sector is under an obligation to notify before filling up any vacancy in his establishment, to such employment exchanges as may be prescribed. Likewise duty is imposed upon the employers of establishments in the private sector. They shall notify the vacancies in their establishments to such employment exchange as may be prescribed from such date as may be specified by the appropriate Government by notification in the Official Gazette. Non-compliance with the above provisions will make the employer liable for penalties. Appointments made by the employer will not be rendered invalid merely by reason of his not complying with the requirements of Section 4.

The manner in which the vacancies shall be notified to the employment exchanges and the particulars of employments in which such vacancies have occurred shall be such as may be prescribed by the appropriate Government. An employer is under no obligation to recruit any person through the employment exchange to fill any vacancy merely because that vacancy has been notified to the employment exchange. Rules 3 to 5 of Employment Exchanges (Compulsory Notification of Vacancies) Rules, 1960 provide in this regard as follows:Employment Exchanges to which Vacancies are to be Notified. Vacancies which shall be notified to the Central Employment Exchange are (a) vacancies carrying total monthly emoluments of Rs 200 or more Government under the Act, and (b) Vacancies which an employer may desire to be circulated to the employment occurring in

establishments in respect of which the Central Government is the appropriate

exchanges outside the State Union Territory in which the establishment is situated. Vacancies other than those specified above, shall be notified to the local employment exchange concerned. (Rule 3). From and Manner of Notification of Vacancies. The vacancies shall be notified in writing to the appropriate employment exchange and the prescribed particulars which are given in Rule 4, shall be furnished, where practicable, in respect of each type of vacancy. (Rule 4). Time limit for the Notification of Vacancies. Vacancies required to be notified to the local employment exchange, shall be notified at least one week before the date on which applicants may be interviewed or tested or the date on which vacancies are intended to be filed, if no interviews or tests are held.

Vacancies, required to be notified to the Central employment exchange shall be notified at least three weeks before the date on which applications will be interviewed or tested or the date on which vacancies are intended to be filled if no interviews or tests are held (Rule 5). Furnishing Information and Returns (Section 5) After the commencement of the Act, the employer of establishment in the public sector is required to furnish such information or return as may be prescribed in relation to vacancies that have occurred or are about to occur in that establishment to such employment exchanges as may be prescribed. The employer of every establishment in the private sector shall likewise furnish " similar information or returns from such date as may be specified by the appropriate Government by notification in the Official Gazette. The form in which, and the intervals of time at which, such information or returned shall be furnished and the particulars which they shall contain shall be such as may be prescribed. Right of Access to Records or Documents (Section 6) Such officer of Government as may be prescribed or any person authorised by him in writing shall have access to any relevant record or document in the possession of any employer who is required to furnish any information or return under section 5. He may enter at any reasonable time any premises where such record or document is lying. He may also inspector take copies of the relevant records or documents or he may ask any relevant questions. Penalties (Section 7) Where any employer fails to notify to the prescribed employment exchanges any vacancy in contravention of the provisions of Section 4, he shall be punishable with fine upto Rs. 500 for the first offence and upto Rs. 1,000 for every subsequent offence.

In case of non-compliance with the .provisions of Sections 5 and 6, the employer shall be punishable with fine upto Rs. 250 for the first offence and upto Rs. 500 for every subsequent offence. Power to Make Rules (Section 10) The Central Government may, by notification in the Official Gazette and subject to condition of previous publication, makes rules for carrying out the purpose of this Act. Such rules may provide for all or any of the following matters, namely: (a) the employment exchange or exchanges to which, the form and manner in which, and the time within which, vacancies shall be notified, and the particulars of employments in which such vacancies have occurred or are about to occur; (b) the form and manner in which, and at the intervals at which, information and returns' required under Section 5 shall. be furnished, and particulars which they shall contain; (c) the officers by whom and the manner in which the right of access to documents and the right of entry conferred by Section 6 may be exercised; (d) any other matter which is to be, or may be, prescribed under this Act.