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The Coffee Break Guide to Compliance – Vol. 13

Posted by: on 7 September 2018 in Amendments, Compliance, HR

This post is part of the Coffee Break Guide to Compliance by Anandan Subramaniam. Please subscribe to the blog updates if you’d like to be notified of these posts. Please comment below with your doubts and queries.

The Coffee Break Guide to Compliance – Vol. 13 {Employers duty in complying with The Employment Exchanges (CNV) Act, 1959}

A silent but simple Legislation which needs to be complied by an Establishment as part of Labour Law compliance. This Act is applicable and extends to Whole of India. Any establishment which has 25 or more employees on their roll, are covered under this Act.

The authority under the Act is The Director of Employment of the State in which the establishment is located.

The objective of the Act is to enable the appropriate authority to assess the employment potential in various categories of establishments. Further it helps the Government to design policy in training and tackle unemployment problem in the region.

Obligation of the employer includes the following:

1. Notifying the vacancies to the Local Employment Exchange office, at least 15 days before the date of interview or test
2. The result of selection shall be furnished to the same office within 15 days from the date of selection
3. Submission of quarterly return in Form no. ER-I within 30 days of the due dates, namely, 31st March, 30th June, 30th September and 31st December.
4. Submission of biennial returns in form ER-II, shall be furnished within thirty days of the due date

EMPLOYERS ARE OBLIGED ONLY TO NOTIFY THE VACANCIES. They are not bound to appoint only those sponsored by Employment Exchanges.

The vacancy notification needs to carry, nature of employment, job description, type of employment, proposed wage, place of work etc.

The ER – I, return does require information to evaluate the trends in employment and action to correct the imbalances between supply and demand in labour market.

The ER – II, return is a consolidated new employment information of such establishment.

Employer is not obligated to notify the Employment Exchanges if the vacancies are as follows:

1. Employment in agriculture, including horticulture
2. Employment in domestic service
3. Total duration of employment will be less than 3 months

4. Any employment which is to do unskilled office work

Further, if any vacancies are to be filled by promotion or absorption of surplus staff of any branch or department of same establishment or by competitive examination, employer is not obligated for notification.

Any non-compliance of the above provisions under the Act, will attract penalties – with a fine which may extend to Rs.500.00 for failure to notify or file return. And Rs.250.00 for refusing to furnish required information or return to the authority.


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