“This Bill seeks to regulate the functioning of private placement agencies in India and overseas,” the ministry said in the draft Bill.
“While these agencies play a significant role in facilitating job placements, there is a need to streamline their operations, ensure transparency, and protect the interests of job seekers and employers,” it added.
As per the bill, no private placement agency shall carry out or engage in the business of providing placement services, whether within a state, or Union Territory, or for employment outside India, unless it is registered with the respective central or state placement support authority.
“Provided that every private placement agency in existence on or before the date of commencement of this Act shall obtain a certificate of registration within a period of one hundred and eighty days from such commencement,” it added.The Bill further proposes setting up of a central placement support authority, to be headed by an office of the rank of additional secretary, to register agencies, maintain the centralised database, monitor compliance and ensure transparency and fairness in the process. Further, it proposes imprisonment for a term of three months with fine or temporary suspension of registration for up to six months in case the private placement agency is found guilty of an offence or act in violation of the law.
