Labour ministry to regulate the functioning of private placement agencies

The ministry of labour and employment has proposed to regulate the functioning of private placement agencies in the country and abroad through mandatory registration, setting up of placement support authority at the Centre and state level and laying down penalties for any offences by these agencies.

The director general of training, under the ministry of labor and employment, has put out a draft of The Private Placement Agency (Regulation) Bill, 2025 on Thursday to seek views of all stakeholders by September 12 after which it will firm up the bill.

“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.