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The Primary and Secondary Duties of the Employment Exchange in India

The Employment Exchange is an office of the central or state government collecting and furnishing informationon prospective employers, available vacancies, and job seekers, thereby allowing them to find suitable jobs or employees, within a specific industry. The Indian Government has two branches of employment exchange, the Central Government and State Level Government. Central Employment Exchange refers to one established by the Government of India, Ministry of Labour and Employment, while the units set up by state governments are called local employment exchanges.

What are the main purposes of an Employment Exchange?

These offices are usually visited by people

  • Persons looking to hire employees
  • Persons looking for jobs
  • People looking to mention that they have open positions in their company and might fill them if they find the right candidate

People looking for jobs have to register with the employment exchange and receive employment exchange cards. They will then be informed as soon as there are vacancies, matching their skill set. Additionally, employment exchange offices work with people, assisting with their vocational and career guidance, along with some amount of counselling. Furthermore, some governments provide allowances to people enrolled and not yet employed.

What are some of the secondary roles carried out by the labour exchange?

The employment exchange is known by many names in different countries, commonly referred to as Labour Exchange, Employment Agency and so on. While it works on assisting people to get their perfect job, it is also usedas a giant statistical tool. This tool is used to gather details on the number of people provided jobs and the number ofunemployed people in a country. This data is also used when rolling out benefits for the unemployed in the country.

What were the legal roles of the employment exchange?

The Act applies to all public and private establishments, engaging in non-agricultural activities, employing 25 or more workers. It also implies that these companies should inform the employment exchange before filling out any of the vacancies. It doesn’t inform the employer that they have to employ any specific person or fill any vacancy, and can choose to handle that directly as well.

However, there are exceptions to this rule and certain jobs do not have to work with the employment exchange. Jobs such as

  • Farm machinery operatives
  • Domestic service
  • Short term jobs with contracts of less than three months
  • Unskilled office work

A Digital Employment Exchange was launched by the Ministry of Micro, Small and Medium Enterprises doing exactly what the previous employment exchange handled. The main difference, however, was that it catered mainly for the micro, small and medium enterprises, generally employing less than 25 people. The traditional and digital employment exchange come under two separate administrative ministries, and companies don't need to register on this platform.

All registrations to the Employment exchange are Aadhaar based. Most of this information is added online as well, making the entire process a lot easier for the common man. This works both ways allowing employers to post their job details on the platform as well.

For Employment Card click here.

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