Reservation on hiring

News

Haryana State Employment of Local Candidates Act, 2020 is all set to be implemented from 15th January 2022.

Read more: Concerns associated with Local Reservation Laws
What are the provisions of the Haryana State Employment of Local Candidates Act?

It provides for a 75% job quota for local people in private sector jobs which offer a salary of  Rs. 30,000 (earlier 50k) a month.  There is a modification in the act as domicile stipulation reduced from 15 years to five years

Read more:  Haryana State Employment of Local Candidates Act of 2020
What is the impact of the Haryana State Employment of Local Candidates Act?

First, It violates the constitutional right of citizens to reside in any part of the country and practise any occupation or business.

Second, The Act creates barriers for businesses by attaching severe monetary penalties for alleged non-compliance.

Third, It will diminish opportunities for small firms as they have to meet Rs. 30,000 thresholds to keep non-local employees on their books.

Fourth, Many industries will seek to move to neighbouring Delhi and UP states owing to restrictions implied by the act. This will have a negative impact on the revenue of the state.

Read more: The ill effects of Job reservation for locals

Source: This post is based on the article “Reservation on hiring” published in the Business Standard on 10th November 2021.

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