Employment Exchanges Act

What is an employment exchange?

An employment exchange is a government-run office where job seekers can register themselves to be considered for employment opportunities. These exchanges are set up at various levels, such as union and local employment exchanges, to help facilitate job matching between employers and workers. Employers notify exchanges of job vacancies, and the exchange helps identify suitable candidates for open positions.

What is the purpose of the Employment Exchanges Act?

The Employment Exchanges (Compulsory Notification of Vacancies) Act of 1959, also known by its short title, the Employment Exchanges Act, or the EE (CNV) Act, was enacted with the purpose of making sure that employers notify relevant government employment exchanges about job vacancies. This allows employment exchanges to help job seekers access available employment opportunities. The Act aims to promote transparency and fairness in recruitment and help a wider pool of candidates access available job opportunities.

The Government of India, through the Ministry of Labour and Employment, oversees the enforcement of this Act as part of its broader labour laws. 

Who does the Employment Exchanges Act apply to?

The Employment Exchanges Act applies to:

• Every public sector establishment

• Private sector establishments that employ 25 or more people (excluding agriculture)

Who does the Employment Exchanges Act not apply to?

The Employment Exchanges Act has some exemptions—it does not apply to:

• Agriculture (except horticulture, which is included)

• Domestic services

• Short-term jobs lasting less than three months

• Unskilled office work

• Employment connected with staff of Parliament

• Jobs with remuneration under 60 rupees per month

Key provisions under the Employment Exchanges Act

The Employment Exchanges Act outlines several key provisions that assign responsibilities to both employers and the government for facilitating open access to job opportunities and complying with notification requirements.

Employers’ responsibilities

Under the Employment Exchanges Act, employers are required to follow specific procedures when notifying vacancies. Employers in the public and private sectors (except those mentioned above who are exempt from the Act) must:

• Notify the employment exchange about any vacancies using the prescribed forms. There are separate forms employers must use depending on the type of job opening. Notifications must be made in a timely manner—the law sets forth time limits for compliance.

• Complete submission of returns notifying the government of current and upcoming vacancies. This includes:

• Quarterly returns using Form ER-I

• Biennial returns using Form ER-II

• Occupational returns once every two years

Government’s responsibilities

The appropriate government, which can be either the central government or the state government (or even a department of the government), has its own set of responsibilities under the Act:

• Maintain and operate employment exchanges

• Publish notifications about job vacancies in the official gazette

Recordkeeping and access

Employers are required to maintain accurate records of the vacancies they have reported and any hiring activities related to those vacancies. 

The government has the right of access to employers’ records to check their compliance with the Act. This helps hold employers accountable for transparency and a fair employment exchange system.

Penalties for noncompliance with the Employment Exchanges Act

Failure to comply with the provisions of the Act can result in penalties for employers enforced by the Director of Employment. These penalties include fines of up to five hundred rupees. In the case of a subsequent offence, the employer can face further penalties and legal consequences.

Frequently asked questions about the Employment Exchanges Act

Where can employers learn more about the Employment Exchanges Act?

The Government of India publishes a National Employment Service Manual with information on the Act and its rules.

What types of vacancies must be notified to the employment exchange?

Employers are required to notify the exchange of any job vacancies, except those in the unskilled category or those exempted by the government.

What happens if an employer fails to notify the exchange about a vacancy?

Employers who fail to notify the exchange may be fined and penalized under the Act, with fines up to five hundred rupees for a first offence, and higher penalties for subsequent violations.

Does the Employment Exchanges Act apply to all states?

The Act applies throughout India, though some specific provisions and responsibilities may vary between the central government and the state government.