Law to Regulate the Activities of Placement Agencies

The Union Labour & Employment Minister Shri Mallikarjun Kharge has informed the Rajya Sabha that at present there are different Laws/Acts under which different types of placement agencies are covered.

(i) Manpower export and Placement Agencies are covered under Immigration Act 1983 ;(ii) Labour Contractors are covered under Contract (Abolition & Regulation) Act, 1970 and the Inter State Migrant Workmen(Regulation of Employment and Conditions of Service) Act, 1979; (iii)Private Securities Agencies are governed by Private Security Agencies (Regulation)Act,2005 and (iv) Private Placement Agencies catering to specific needs of the employers /labour market or temporary works not falling under first three categories, are not covered by any specific Act. These are small in number and working in sporadic locations. Some States/UT have issued guidelines to register them under their Shop & Establishment Act by the Labour Department.

In order to safeguard the interests of job-seekers, Ministry of Labour & Employment issued guidelines on 30.10.2003 to the State Governments/ Union Territory Administrations to consider regulation of the functioning of Private Placement Agencies, as per local needs. A Tripartite Committee has also been constituted on 31.10.2011 to examine the issue pertaining to private placement agencies & publishing of eye catching/ misleading advertisements for various kinds of job opportunities.

The Minister was replying to a written question whether at present there is no law to regulate the activities of placement agencies; if not, the laws in which the activities of the placement agencies are regulated; and whether Government intend to enact a separate comprehensive law to regulate the activities of the placement agencies?

Source : PIB Release, March 14, 2012