[India] Haryana private-sector quota law takes effect in January

On November 6, a year after it was passed by the state assembly, the BJP-JJP government in Haryana ordered that the law providing for 75 per cent of private-sector jobs to be reserved for locals should come into force from January 15 2022, Hindustan Times reports.

The Haryana assembly passed the legislation - titled the Haryana State Employment of Local Candidates Bill - on November 5 last year and the governor gave his assent to the bill on March 2, 2021.

“In exercise of the powers conferred under section 3 of the Haryana State Employment of Local Candidates Act, 2020 (3 of 2021), the Governor of Haryana hereby specifies the 15th day of January 2022 for the purpose of said sub-sections,” the state labour department said in its announcement.

The delay in implementation of the law was due to the framing of the rules, an official said, speaking on condition of anonymity. The law provides for a 75 per cent reservation of private-sector jobs for those with a resident certificate (domicile).

The law will be applicable for a period of 10 years. The state government also relaxed the residency (domicile) requirement from 15 to five years for a person to receive a resident certificate in the state, to provide private companies with some hiring flexibility.

On November 6, the state government also reduced the upper limit of gross monthly salary for jobs which will come under the scope of the private sector job quota law. As per the official announcement, jobs with a gross monthly salary of not more than ₹30,000 will be available for hiring from among local candidates. The bill passed by the assembly last year capped the gross monthly wages for jobs available for hiring at ₹50,000.

However, following feedback from industrial houses and entrepreneurs, the state government reportedly decided to reduce the salary cap.

Haryana chief minister Manohar Lal Khattar said the important thing is to create a harmonious environment for industry as well as for the region’s youth along with creating the right balance between the progress of industries and the economy.

Following the announcement, India Inc called for a reexamination of the legislation, saying it could lead to multinational firms moving out of the state.

The Confederation of Indian Industry (CII) said, “At a time when it is important to attract investments at the state level, governments should not impose restrictions on the industry. Reservation affects productivity and industry competitiveness. 

“We hope the government re-looks the legislation or at least ensures the rules are fair. As one country, there should be no imposition or restriction.”

The private sector job quota move was piloted by deputy chief minister Dushyant Chautala’s Jannayak Janta Party (JJP), a coalition partner of the Bharatiya Janata Party (BJP) in Haryana.

On November 6, a year after it was passed by the state assembly, the BJP-JJP government in Haryana ordered that the law providing for 75 per cent of private-sector jobs to be reserved for locals should come into force from January 15 2022, Hindustan Times reports.

The Haryana assembly passed the legislation - titled the Haryana State Employment of Local Candidates Bill - on November 5 last year and the governor gave his assent to the bill on March 2, 2021.

“In exercise of the powers conferred under section 3 of the Haryana State Employment of Local Candidates Act, 2020 (3 of 2021), the Governor of Haryana hereby specifies the 15th day of January 2022 for the purpose of said sub-sections,” the state labour department said in its announcement.

The delay in implementation of the law was due to the framing of the rules, an official said, speaking on condition of anonymity. The law provides for a 75 per cent reservation of private-sector jobs for those with a resident certificate (domicile).

The law will be applicable for a period of 10 years. The state government also relaxed the residency (domicile) requirement from 15 to five years for a person to receive a resident certificate in the state, to provide private companies with some hiring flexibility.

On November 6, the state government also reduced the upper limit of gross monthly salary for jobs which will come under the scope of the private sector job quota law. As per the official announcement, jobs with a gross monthly salary of not more than ₹30,000 will be available for hiring from among local candidates. The bill passed by the assembly last year capped the gross monthly wages for jobs available for hiring at ₹50,000.

However, following feedback from industrial houses and entrepreneurs, the state government reportedly decided to reduce the salary cap.

Haryana chief minister Manohar Lal Khattar said the important thing is to create a harmonious environment for industry as well as for the region’s youth along with creating the right balance between the progress of industries and the economy.

Following the announcement, India Inc called for a reexamination of the legislation, saying it could lead to multinational firms moving out of the state.

The Confederation of Indian Industry (CII) said, “At a time when it is important to attract investments at the state level, governments should not impose restrictions on the industry. Reservation affects productivity and industry competitiveness. 

“We hope the government re-looks the legislation or at least ensures the rules are fair. As one country, there should be no imposition or restriction.”

The private sector job quota move was piloted by deputy chief minister Dushyant Chautala’s Jannayak Janta Party (JJP), a coalition partner of the Bharatiya Janata Party (BJP) in Haryana.