Haryana – 75% of New Jobs Reserved for Local Candidates
- Arjun Paleri and Jaya Ramachandran
The Government of the State of Haryana recently enacted (and brought into force) the Haryana State Employment of Local Candidates Act, 2020 (Act) with the aim to ensure that jobs in private establishments in the State of Haryana are staffed predominantly by local candidates from the State.
There are some ambiguities on the procedures which organizations must follow to comply with the Act. The (operational) Rules which will be announced in due course may provide further clarity on the manner in which the Act must be implemented by organizations.
The Act was brought into force on March 2, 2021 and will be in force for a period of 10 years there from.
Key Highlights of the Act:
Applicability – The Act applies to (i) all Companies, Societies, Trusts, Limited Liability Partnership Firms, Partnership Firms; or (ii) any person employing 10 or more persons.
Scope of reservation – Employers must now reserve 75% of new jobs with a gross monthly salary of up to INR 50,000 for candidates domiciled in the State of Haryana.
Procedural aspects –
Every employer must register all its employees with a monthly salary of up to INR 50,000 on a Governmental portal within three months from March 2, 2021 – the details of the Governmental portal are expected to be notified soon.
Exemptions from hiring local candidates can be sought by an employer, if the employer is unable to find adequate number of local candidates with the required skill, qualification or proficiency. All exemptions will be evaluated by a designated officer, who may either (i) approve exemptions, (ii) reject it, or (iii) direct the employer to train the local candidates to achieve the desired skill, qualification or proficiency.
Employers will have to furnish quarterly reports of the local candidates employed and appointed in each particular quarter.
Penalties for non-compliance –
Failure to employ 75% local candidates for any open positions may be punishable with a fine between INR 50000 to INR 200000, with further penalty in case of a continuing offences.
An employer cannot employ or engage any person in a new job unless the mandatory online registration is completed. Failure to register may be punishable with a fine between INR 25000 to INR 100000, with further penalty in case of a continuing offences.
Disobedience of direction passed by a designated officer may be punishable with a fine between INR 10000 to INR 50000, with further penalty in case of a continuing offences.
Things to consider:
Organizations should assess their staffing requirements and recruitments underway for new job positions in the State of Haryana starting from March 2, 2021.
The Act will impact all new recruitments in the State of Haryana starting from March 2, 2021, and organizations should check the availability of suitably qualified local candidates domiciled in the State of Haryana for new job positions.
Employers must register details of all employees working in the State of Haryana earning a monthly salary of up to INR 50,000 as soon as the Governmental portal is formally notified.