Draft Private Placement Agency (Regulation) Bill, 2025 released for stakeholder feedback

On 14 August 2025, the Directorate General of Employment, Ministry of Labour and Employment, Government of India, released the draft Private Placement Agency (Regulation) Bill, 2025 for public consultation. The bill represents a significant policy shift, seeking to bring private placement agencies whether operating domestically or overseas within a structured regulatory framework aimed at ensuring transparency, accountability, and the protection of job seekers from exploitative recruitment practices.

The obligations imposed under the bill are extensive. Agencies will be required to maintain detailed records of job seekers and employers, submit placement details within sixty days of recruitment through the integrated career service portal, and comply with inspection and monitoring requirements. The bill also prescribes grievance redressal mechanisms at the state level to address disputes or complaints against agencies. Operating without registration, failing to upload requisite information, or non-compliance with prescribed procedures will constitute offences, attracting penal consequences including suspension or cancellation of registration and monetary penalties.

In addition to addressing concerns of unethical recruitment, the bill integrates private placement agencies into the government’s broader employment governance ecosystem. By requiring information uploads on the integrated career service portal, it creates a unified database of recruitment activities, enabling better oversight and data-driven policymaking. Notably, agencies registered under the new framework will be exempt from overlapping provisions of the Private Security Agencies (Regulation) Act, 2005, ensuring clarity and coherence in regulatory treatment.

Once enacted, the legislation is expected to formalise a sector long plagued by opacity, offering job seekers greater assurance of ethical treatment while requiring employers to engage only with duly registered agencies. In practical terms, placement agencies must prepare for mandatory registration, compliance audits, and stricter documentation norms, while employers relying on such agencies should anticipate enhanced due diligence obligations to ensure adherence to the regulatory framework. The bill, if enacted in its present form, marks an important step in balancing the twin objectives of expanding access to employment opportunities and safeguarding the dignity and rights of workers.