The Haryana government has made some amendments to the Haryana State Employment of Local Candidates Act 2020.
What is the Original Act?
The Bill was passed by Haryana State Legislative Assembly in November 2020.
The Act will come into effect on January 15.
All employer must mandatorily employ 75% local candidates (who is domiciled in State of Haryana) for the posts where the gross monthly salary is not more than Rs. 50,000.
Employers includes all companies, partnership firms, societies, trusts, limited liability partnership firms and any employer who employs 10 or more employees.
Exemptions - Organisation owned by the central or state government are exempted.
An employer can claim exemption if the government appointed officers believe that the request seeking exemption holds merit.
In case of violation he employer can be fined with a minimum Rs. 10,000 to a maximum Rs. 2 lakh.
This law applies to new recruitments and will not come into effect retrospectively.
What amendments are made?
Relaxing domicile conditions for local candidates
Reduced the threshold level from Rs50,000 gross monthly salary to Rs30,000 gross monthly salary for employers.
Inclusion of a sunset clause where the law will cease after 10 years of enactment.
What is Haryana government’s rationale?
Urbanisation and industrialisation has led to substantial land acquisition in the State, which has historically been an agrarian society.
This has led to reduction in employment opportunities in agriculture sector for the local youth
The law will help create new job opportunities for them and also encourage skill development.
This will reduce dependency of employers in Haryana on migrant workers and improve their efficiencies.
What are the directions given to the employers?
All employers are directed to register their eligible employees (monthly pay < Rs 30000) on the designated portal within 3 months.
Any new recruitment in this pay bracket can be initiated only after completing this process.
File a quarterly report regarding the local candidates employed and appointed in this pay bracket in the previous quarter in the designated portal.
What are the concerns?
Industry bodies feels that law
is discriminatory in nature and against the concept of one nation.
will increase their compliance burden especially on MSMEs.
There is a provision for an exemption if an adequate number of local candidates of desired skill or proficiency are not available for a particular category of jobs.
But the government can accept or reject the claim or direct the company to train local candidates in the desired skills.
Workers are predominantly from certain clusters of the country, such as construction, manufacturing and services sector such as hospitality and retail.
So, availability of workers for specialised jobs such as trades is a concern.
What will be the implications?
This will impact the business-friendly image of the State, ease of doing business rankings
Discourage fresh investments by industries in Haryana.
Rule controlling the internal functioning of a private enterprise will affect its competitiveness and hurt their productivity.
Several industry bodies have challenged the law in the Punjab and Haryana High Court.
