Soon, bill to regulate placement agencies

After getting complaints from residents, the Delhi government is finalising a draft bill to regulate placement agencies.

After getting complaints from residents, the Delhi government is finalising a draft bill to regulate placement agencies.

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According to government officials, many placement agencies have been extracting money from customers, besides exploiting domestic help, who have been requisitioned by them.

“The labour department has been receiving a large number of complaints against such agencies, whose modus operandi is against business ethics. The present legislation is not sufficient to curb the fraudulent practices of such agencies, which are causing harassment and monetary losses to customers,” said Ramakant Goswami, labour and industries minister, Delhi government.Officials added that the problem had become grave in the national Capital as lakhs of families depend on placement agencies for domestic help.

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“The draft bill will soon be placed before the Cabinet. Once passed, the bill will be introduced in the Legislative Assembly,” the minister added. "Our department has been working overtime to redress the complaints filed against some placement agencies, but it is difficult to act against them due to the existing labour laws,” said a senior Delhi government official.

“It is time to revisit the existing labour laws. Certain laws were enacted decades ago. We also need to simplify the norms," said Goswami.

Government officials said the city was the first state in India to issue instructions for the release of wages to workers through Electronic Clearance System or crossed cheques.

"It will eliminate cases related to under-payment of minimum wages," said an official.