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In a step to reform employment regulations, the central government plans to replace the Employment Exchanges Act, 1959, with a new Social Security Act, mandating private companies to report job vacancies
The government aims to establish a formal mechanism for disseminating information about job vacancies. (Representative/News18 Hindi)
Private companies usually advertise vacant positions through platforms like LinkedIn and Naukri.com for recruitment purposes. However, it may soon become mandatory for private companies to disclose information about vacancies in all departments and verticals to the government.
The central government is planning to replace the Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959, with a new Social Security Act. The objective is to establish a formal mechanism for disseminating information about job vacancies.
The government is taking steps to reform employment regulations, aiming to enforce stricter compliance. A key focus of this initiative is the mandate for companies to report job vacancies to the government. To ensure adherence, the government is contemplating a significant increase in penalties for non-compliance, potentially raising the fine from Rs 100 to Rs 50,000. This measure underscores the government’s commitment to closely monitor and regulate employment practices.
Employment exchanges have become inactive
According to a Times of India report, Maharashtra’s Skill Development, Employment and Entrepreneurship Minister Mangal Prabhat Lodha said in a press conference in Mumbai on Monday, “We have employment exchanges, which have become inactive. Under the new law, we will revive and strengthen them, ensuring companies report vacancies to the state.”
He also said that companies have been avoiding reporting vacancies due to minor penalties, which is now planned to change.
The Maharashtra government is undertaking an initiative to streamline job seeking in the state. As part of its 100-day action plan, the government intends to launch a dedicated job portal. This platform will serve as a centralised location for companies to list vacancies, simplifying compliance requirements.
While currently, most companies utilise platforms like LinkedIn, the government’s portal aims to enhance transparency and accessibility to employment opportunities. The success of this initiative, however, hinges on the response and adoption by companies, which remains to be seen.
