Following the Haryana government’s notification of a law providing 75% reservation to locals in private jobs, India Inc on Saturday called for a re-examination of the legislation, claiming that it will lead to multinational firms leaving the state. Industry groups argued that reservation reduces competitiveness and suggested that the state government provide a 25% subsidy to the industry as an incentive for each local hired.
In a strongly worded response, 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,” it added. The industry body emphasised that with Prime Minister Narendra Modi’s vision of ‘Ek Bharat Shrestha Bharat’, which focuses on strengthening the unity and integrity of India, “we should not see such restrictive practices”.
Another body, the PHD Chamber of Commerce and Industry (PHDCCI) said it is of the view that any Indian should be allowed to work in any state of India without any restrictions. “The 75 per cent reservation will result in moving out of tech companies, automotive companies, especially MNCs (multinational companies) as these are highly skilled manpower-based companies.
PHDCCI President Pradeep Multani said, “The state government can give 25 per cent subsidy to industry and trade for each local hired. Let this be an incentive to hire locals. There should be no compulsion.”
The law will come into force from January 15, 2022. A notification in this regard was issued by the Haryana government on Saturday. Haryana Chief Minister Manohar Lal Khattar, in an official release here, said the Haryana State Employment of Local Candidates Act, 2020 will be made applicable with effect from January 15, 2022 with the priority of providing employment to the local youth in private sector.
The state government had issued a notification in the official gazette on November 6, 2021, specifying the date of its commencement as January 15, 2022, according to the release. The state, however, issued another notification whereby the upper limit of gross monthly salary or wages under the said Act has been reduced from Rs 50,000 to Rs 30,000, Khattar said.
In March this year, Haryana Governor Bandaru Dattatreya had given his assent to the Haryana State Employment of Local Candidates Bill, 2020, providing 75 per cent reservation for those having domicile certificates and seeking private sector jobs that offer a monthly salary of less than Rs 50,000 a month. Khattar said the said Act will be applicable to employers of private sector companies, societies, trusts, limited liability partnership firms, partnership firms and any person who employs 10 or more persons on salary, wages or other remuneration for the purpose of manufacturing, carrying on business or rendering any service in Haryana.
It will be mandatory for all these employers to register all their employees drawing gross monthly salary or wages not more than Rs 30,000 on the designated portal available on the official website of Labour Department, Haryana. Violation of any provision of this Act will be a punishable offence, he added.
Deputy Chief Minister Dushyant Chautala said the state government’s decision to provide 75 per cent jobs to local youth in private companies would greatly benefit the youth of the state. We had promised that we would ensure 75 per cent employment opportunities for local candidates in private sector, which we have accomplished and it will prove to be a revolutionary step, he said.
With inputs from PTI.
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