Objective: To provide for the complusory notification of vacancies to employment exchange. this Act is enacted for the purposes of enabling the appropriate authorities to assess the employment potential in various categories of employment. It is also intended to service as a statistical need to assess any future policy in connection with the imparting of training to potential employees.

Notification: The Act requires the employer in every establishment in public sector to notify the vacancies to Employment Exchanges of the State concerned before filling up any vacancy in any employment in that establishment. The State Government may by notification require the employer in every establishment in private sector to notify vacancies to Employment Exchange. Notification of vacancies is required to be made in a manner prescribed under the Act.

Notification is not necessary in the case of employment in-

a) Agriculture or farm machinery operatives.

b) Domestic service.

c) Employment with duration of less than three months.

d) Unskilled office work, and

e) The staff of Parliament.

Notification is also not necessary when vacancies are proposed to be filled through promotion or by absorption of surplus staff or on the result of examination conducted/interview held by/recommendation of an independent agency such as Public Service Commission.

Vacancies in an employment carrying remuneration of less than Rupees Sixty p. m. too are not required to be notified.

Records/Documents: Prescribed Officer of Government or any person authorised by him in writing has the right of access to relevant record or document in the possession of the employer who is required to furnish any information or returns. Such officer/person may at any reasonable time enter any premises where he believes such record or document to be and inspect or take copies of relevant record/document. He can ask any question necessary for obtaining any information required under this Act.

Penalties: Defaulting employer shall be punishable for the first offence related to notification with fine which may extend to five hundred rupees. For subsequent offence, fine may extend to one thousand rupees. Fine related to offence on Records/Documents and right to entry, extends to two hundred and fifty rupees for the first offence and five hundred rupees for the subsequent offence.

Rules: they are framed by the Central/State Government under the Employment Exchange (Compulsory Notification of Vacancies) Rules 1960 and provide for details on requirements such as form and manner of notification of vacancies.