The Employment Exchanges Act is intended to benefit both the employer and the worker. It enables the employer to choose the best and the most efficient and provides an opportunity to the worker to have his claim for appointment considered without the worker having to knock at every door for employment.

(1) The employer in every establishment in public sector in that State or area shall, before filling up any vacancy in any employment in that establishment, notify that vacancy to such employment exchanges as may be prescribed.

(2) The appropriate Government may, by notification in the Official Gazette, require that from such date as may be specified in the notification, the employer in every establishment in private sector or every establishment pertaining to any class or category of establishments in private sector shall before filling up any vacancy in any employment in that establishment, notify that vacancy to such employment exchanges as may be prescribed, and the employer shall thereupon comply with such requisition.

(3) The manner in which the vacancies referred to in sub-section (1) or sub-section (2) shall be notified to the employment exchanges and the particulars of employments in which such vacancies have occurred or are about to occur shall be such as may be  prescribed.

(4) Nothing in sub-sections (1) and (2) shall be deemed to impose any obligation upon any employer to recruit any person through the employment exchange to fill any vacancy merely because that vacancy has been notified under any of those sub-sections.

An employer shall furnish to the Local Employment Exchange quarterly returns and biennial returns in such form and at such intervals of time as prescribed by Rules made under the Act.

As per section 7 of the Act,