Par panel recommends regulation of private placement agencies

A parliamentary committee has noted with concern that rise of private placement agencies involved in providing domestic workers has led to exploitation of poor people by these agencies, middlemen and employers.
The Standing Committee on Labour in its latest report has stated that there is no need for households to notify their vacancies before hand. "The domestic workers seeking work can register with the exchange and the households can go to the exchanges when the demand arises," the report tabled in Parliament today said.
The committee headed by Dara Singh Chouhan was of the view that to curb the exploitation of the poor workers, revamped employment exchanges, once they are set up, may involve themselves in this field.

The committee observed that private placement agencies catering to the recruitment needs of the private sector have mushroomed in the recent past. "These placement agencies mislead the unemployed youth, collect money from them and often vanish," the report stated.
It recommended that the provisions for regulating such agencies may also be made in the amended Act.
The committee was disappointed to observe that even after 50 years, a half hearted and haphazard attempt has been made to amend the Employment Exchanges (Compulsory notification of vacancies) Act and recommended that the bill be returned to Labour Ministry for a comprehensive amendment.

The Employment Exchanges Act, 1959 was enacted to provide for compulsory notification of vacancies and occupational, relating to employment situation by the employers. Over the years with changing scenario in job sector there was a need to amend the Act.

The Labour Ministry has proposed to substitute, the nomenclature of Employment Exchange with Employment Guidance and Promotion Centres by amending the Section 2(d) of the Act.
The committee recommended that the Ministry while changing the nomenclature of the Act bring consequent changes in the Act for the benefit of maximum number of jobseekers and prospective employers.
It was of the opinion that employment exchanges should concentrate on providing information about employment opportunities to the largest number of people and information about unemployed youth to prospective employers.

The Employment Exchanges (Compulsory notification of Vacancies Amendment) Bill, 2013 was introduced in Rajya Sabha in April 2013 and referred to the committee for examination and report.