The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959
π The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959
π¦ 1. Introduction and Objective
Enacted in 1959, the Act was created to bridge the gap between employers and job seekers.
Its primary objective is to make it compulsory for certain employers to notify vacancies to employment exchanges maintained by the government.
It helps the government:
Collect employment data
Assist in manpower planning
Promote employment opportunities
π¦ 2. Constitutional Basis
Related to Directive Principles of State Policy, particularly:
Article 39(a): Right to adequate means of livelihood.
Article 41: Right to work and public assistance.
π¦ 3. Applicability of the Act (Section 1)
Applies to the whole of India.
Applies to:
Public sector establishments.
Private sector establishments (excluding agriculture) with 25 or more employees.
π¦ 4. Key Definitions (Section 2)
| Term | Definition |
|---|---|
| Establishment | Any office or place where industry, trade, business or occupation is carried on. |
| Employer | Any person who employs one or more persons for remuneration. |
| Employment Exchange | Government-established office for job placement services. |
| Vacancy | A job opening to be filled, either by new appointment or otherwise. |
π¦ 5. Main Provisions of the Act
πΉ Section 4 β Notification of Vacancies
Every employer in a notified establishment must notify vacancies (except those exempted) to the local employment exchange before filling the position.
Exemptions: Vacancies in:
Agriculture
Domestic service
Unskilled office work
Jobs less than 3 months in duration
Jobs filled through promotion or absorption of surplus staff
Employment in Parliament or State Legislatures
πΉ Section 5 β Form and Manner of Notification
The manner and time frame for notifying the vacancy is prescribed by the Central Government.
Notification must include:
Job title
Description
Qualifications
Age limit
Number of posts
Pay scale
πΉ Section 6 β Right of Access to Records
Authorised officers can inspect records and obtain information from employers to verify compliance.
Employers must allow access and provide requested data.
πΉ Section 7 β Penalties
Failure to notify vacancies:
Fine up to βΉ500 for the first offence
βΉ1,000 for subsequent offences
Obstruction of inspection or non-compliance with information requests may attract similar fines.
πΉ Section 8 β Cognizance of Offences
No court shall take cognizance of offences under this Act except on a complaint by an authorised officer.
π¦ 6. Purpose and Importance
| Benefit | Description |
|---|---|
| Manpower Planning | Helps the government gather statistical data for employment planning. |
| Job Matching | Assists job seekers in getting matched with employers. |
| Transparency | Ensures employers follow fair recruitment processes. |
| Policy Formulation | Supports national and regional employment policy decisions. |
π¦ 7. Limitations and Criticisms
No obligation to recruit through employment exchanges β employers must notify, but they can hire from other sources.
Low penalties offer little deterrence.
Lack of enforcement and low awareness among private employers.
Often criticized for being ineffective in private sector job regulation.
βοΈ Important Case Law
β 1. Union of India v. Hargopal, AIR 1987 SC 1227
Issue: Whether the employer is bound to recruit only through the employment exchange.
Held:
No, the employer is only obliged to notify the vacancies.
The Act does not mandate selection through employment exchanges.
Significance: Clarified that the Act is directory, not mandatory, with respect to recruitment.
β 2. Delhi Development Horticulture Employees' Union v. Delhi Administration (1992)
Issue: Whether temporary workers recruited without notifying employment exchange could claim permanent employment.
Held:
Workers can't claim regularisation if recruitment was made without following procedure, including failure to notify.
Significance: Reinforced the importance of notifying vacancies to prevent backdoor entries.
β 3. Excise Superintendent, Malkapatnam v. K.B.N. Visweshwara Rao (1996) 6 SCC 216
Issue: Was recruitment valid if not all vacancies were notified to employment exchange?
Held:
Employment exchanges help reach unemployed persons equally.
Non-notification violates the spirit of equal opportunity but doesn't automatically make recruitment invalid unless mala fide is proved.
Significance: Emphasized fairness and transparency in recruitment.
π’ 8. Summary Table
| Feature | Details |
|---|---|
| Name of Act | The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 |
| Objective | Compulsory notification of job vacancies to employment exchanges |
| Applies to | Government and private establishments (with 25+ employees) |
| Does it require hiring from employment exchange? | β No |
| Penalty for non-compliance | βΉ500 to βΉ1,000 |
| Is recruitment via employment exchange mandatory? | β No, only notification is compulsory |
| Key Case | Union of India v. Hargopal (1987) β clarified legal obligation |
π£ 9. Conclusion
The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 is a statistical and regulatory tool that assists the government in understanding employment trends and facilitating job opportunities. However, the Act is often criticized for its limited enforcement power and lack of mandatory recruitment provision.
While it encourages transparency and fair recruitment, its low penalties and non-binding nature limit its effectiveness, particularly in the private sector. Nonetheless, it serves an important role in labour market analysis and employment planning.
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