Haryana reserves 75% private sector jobs for locals: From exemptions to penalties, all you need to know about the Bill

The Haryana State Employment of Local Candidates Bill, 2020 provides a quota for local people in private-sector jobs that offer a salary of less than ₹50,000 a month

FP Staff March 03, 2021 21:27:54 IST
Haryana reserves 75% private sector jobs for locals: From exemptions to penalties, all you need to know about the Bill

File image of Haryana CM Manohar Lal Khattar. Facebook

Haryana governor Satyadeo Narain Arya on Tuesday (2 March) gave his assent to a Bill that reserves 75 percent of the jobs in the private sector that pay less than Rs 50,000 per month for locals.

The Haryana Assembly had late last year passed the Haryana State Employment of Local Candidates Bill, 2020, a key poll promise made by Dushyant Chautala's Jannayak Janta Party, the coalition partner of the ruling BJP.

The quota will initially apply for 10 years, according to the Bill.

Now, let's take a close look at this Bill and what it entails.

Which companies are covered under the Bill?

As per PRS Legislative, the Bill applies to:

  1. All companies, partnership firms, societies, trusts, limited liability partnership firms.
  2. Any person employing 10 or more persons.  It does not apply to the Central or state government, or any organisation owned by them.

Who will it benefit the most?

According to the Bill, locals will benefit the most. The Bill defines local candidates as those domiciled in the state. For the domicile status, a person should be born in Haryana or have lived there for at least 15 years.

Under the Bill's provision, every employer will hire 75 percent local candidates in posts where the gross monthly salary is not more than Rs 50,000. The local candidates can be from any district of the state.

Only 10 percent of the recruitment by a company needs to be from the district in which it is located, the rest of the quota can be filled from other districts in the state.

According to The Indian Express, the employer will have the option of restricting the employment of local candidates from any district to 10 percent of the total number of local candidates. It will, however, be also the employer’s discretion if he wants to recruit above 10 percent employees from a particular district.

Are there any exemptions?

Yes. The Bill mentions a clause that allows companies to hire an outsider only if they are unable to find a suitable local candidate for a job profile. But it is not an easy process.

The claim will be evaluated by an officer of the rank of deputy commissioner or higher. The officer may:

(i) Accept the claim.

(ii) Reject the claim with recorded reasons.

(iii) Direct the employer to train local candidates to achieve the desired skill or proficiency.

Will employers be penalised for not following provisions?

Private companies can be fined a minimum of Rs 10,000 to a maximum of Rs 2 lakh once it is established that the employer has committed a violation of provisions of the Bill. However, if the employer continues to commit the violation even after conviction, a penalty of Rs 1,000 per day till the violation continues shall be imposed.

Moreover, a penalty of Rs 50,000 shall be levied on the employer who produces false records or counterfeits or knowingly makes/ produces a false statement, as per the Bill.

What does the Constitution say?

According to Article 16 of the Constitution, every citizen of India has been guaranteed equal treatment under the law in matters of public employment. The article forbids the State from discriminating on grounds of place of birth or residence.

While the government, in the statement of objects and reasons of the Bill, states that giving preference to local candidates in low-paid jobs serves the general public interest, and is socially, economically and environmentally desirable, experts told the Hindustan Times that the Bill is in contravention of the Constitution and will not withstand judicial scrutiny.

The clause providing for preference in jobs to the local candidates domiciled in Haryana, is in contravention of Article 14 of the Constitution pertaining to equality before the law and Article 19 (1)(g), experts told the newspaper.

Apart from tackling unemployment among local people, the state government said the Bill will discourage the influx of migrants seeking low-paid jobs, which has a significant impact on local infrastructure and leads to the proliferation of slums.

Haryana is not the first state in India where job reservation is being undertaken. As per CNBCTV, Gujarat, Karnataka and Maharashtra have brought in laws to reserve jobs, but the laws haven't been enforced or implemented.

Reactions on the Bill 

Dushyant Chautala described the assent given by the governor as the "happiest moment for the youth of Haryana."

"The rules will be framed soon and published," he added.

The Confederation of Indian Industry (CII) has urged the Haryana government to take a "re-look" at the legislation, saying reservation impacts productivity and competitiveness.

With inputs from PTI

Updated Date:

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