Karnataka quota row: When other states tried to impose private jobs reservation

Karnataka has put the bill on job reservation in the private sector on hold after top industry leaders and bodies caused an uproar. The Siddaramaiah-led government said the Cabinet will discuss the proposed law comprehensively before tabling it in the Karnataka Assembly.

Earlier this week, the state government had given the nod to ‘The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024’, mandating 75 per cent reservation in non-management jobs and 50 per cent in management jobs for locals.

The proposed bill led to an immediate backlash, forcing the state government to put it on hold. Karnataka is not the only state that has attempted to introduce reservations in private jobs. Let’s take a look at which other states have tried to do it before and what was the result.

Andhra Pradesh

In 2019, the YS Jagan Mohan Reddy-led government passed a bill reserving 75 per cent of jobs for local candidates in private sector and public-private partnership companies.

The Andhra Pradesh Employment of Local Candidates in the Industries and Factories Act, 2019, mandated reserving three-fourths of private jobs across all industrial units, factories and joint ventures.

The law stated that if skilled locals are not available, the companies would train them in collaboration with the state government and then hire them, as per a Times of India (TOI) report.

There was leeway for companies if they required specialised manpower, which was not available locally, and flagged the same to the state. However, this would prompt an examination by the state industries department.

The law was challenged in the Andhra Pradesh High Court in 2020, with the court saying it “may be unconstitutional”.

Haryana

The Bharatiya Janata Party-led Haryana government brought 75 per cent quota for locals in private jobs that paid a monthly salary of less than Rs 30,000 in 2020.

The bill received the Governor’s nod in March 2021 and was enforced in January 2022.

The law applied to all companies, societies, trusts, limited liability partnership firms, partnership firms, and large individual employers. Any individual employing 10 or more people on salary, wages, or other remuneration for manufacturing or any service, along with any entity notified by the government, were also covered by the Act, reported Indian Express.

According to the law, a candidate “domiciled in State of Haryana” had to register themselves on a specific online portal through which employers had to make recruitments.

Exemptions were allowed but they included a drawn out process of officers believing that such a request had merit.

The Faridabad Industries Association and other Haryana-based groups argued that the state government wanted to give reservations in the private sector through a policy of “sons of the soil”. Challenging it in the Punjab and Haryana High Court, they claimed the legislation infringed the constitutional rights of employees in Haryana.

The Haryana government contended it can create such reservations under Article 16(4) of the Constitution. It said the right to equality in public employment does not prohibit the state from “making any provision for the reservation of appointments or posts in favour of any backward class of citizens which, in the opinion of the State, is not adequately represented in the services under the State”.

Last November, the court struck down the private jobs quota bill. It ruled that the Haryana government’s action would lead to “absolute control over a private employer,” which is “forbidden for public employment.” The provisions of the law were “gross to the extent that a person’s right to carry on occupation, trade, or business” under Article 19(1)(g) of the Constitution was being undermined, the court said, as per Indian Express.

The court also observed the state “cannot as such discriminate against the individuals on account of the fact that they do not belong to a certain State”.

The Haryana government moved the apex court against the High Court’s order.

Jharkhand

In 2021, Jharkhand passed a bill on 75 per cent reservation for locals in the private sector up to Rs 40,000 monthly salary — the third state to bring such a bill.

According to Jharkhand’s bill, “Every employer shall register such employees receiving gross monthly salary as wages not more than Rs 40,000 as the limit notified by the government from time to time on the designated portal within three months of the Act coming into force".

It further said, “Every employer shall fill up 75 per cent of the total existing vacancies on the date of notification of this Act and subsequent thereto by local candidates with respect to such posts where the gross monthly salary or wages are not more than Rs 40,000”.

The bill was challenged in the Jharkhand High Court.

When states recently tried to raise quotas 

Some states have also tried to increase quotas in government jobs.

Last year, the Jharkhand government cleared a bill on 100 per cent reservation for locals in Class-III and Class-IV state government jobs.

It defined ‘local person’ based on land records from 1932 or before.

However, Governor CP Radhakrishnan returned the bill, asking the government to reconsider.
The Jharkhand government passed the bill again in December without implementing the changes. The proposed bill is yet to be sent to the governor.

In June, the Patna High Court ‘set aside’ the Bihar government’s order to raise reservation in government jobs and educational institutions from 50 per cent to 65 per cent for Dalits, backward classes, and tribals.

“It is to break the stranglehold of a few at the expense and to the detriment of the many that reservation to backward classes was envisaged. But merit cannot be completely effaced and sacrificed at the altar of reparations. This was the principle on which the 50 per cent limit was laid down for reservations,” the court said.

The Bihar government has moved the Supreme Court, challenging the High Court’s judgement.

Matter before Supreme Court

In February 2022, the apex court said it is ready to decide the validity of domicile-based reservations in private sectors in Haryana, Andhra Pradesh and Jharkhand.

The top court asked for the Centre’s response, observing if these cases can be considered together.

The court said at the time, “If the matter is pending before other high courts, we can transfer it here and decide the question of law if all sides are willing.”

With inputs from agencies