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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.


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