Updated: November 7, 2020 6:21:01 pm
Haryana Prime Minister Manohar Lal Khattar
Following the lines of the Andhra Pradesh government, Haryana has also announced that it wants 75 percent of private sector jobs in the state, up to a certain salary level, reserved for local candidates. The State Assembly has approved Haryana State Local Candidate Employment Bill, 2020 paving the way for more employment opportunities for locals in the private sector.
Here’s a look at the bill, its provisions that may not be to the liking of the private sector, and whether it can be legally challenged.
What sectors will be covered by this bill?
All companies, partnerships, trusts, limited liability companies, partnerships, and any person that employs 10 or more people and one entity, that the government notifies from time to time, will fall within the scope of this Act. The definition of “employer” given in the bill means a company registered under the Companies Act 2013 (Central Law 18 of 2013) or a company registered under the Haryana Company Registration and Regulation Law of 2012 or a Company of Limited Liability as defined under the Limited Liability Companies Act of 2008 (Central Law 6 of 2009) or a Trust defined under the Indian Trusts Act of 1882 or a Firm of Partnerships as defined in the Indian Societies Act of 1932 or any person who employs 10 or more persons in salary or other remuneration for the purpose of manufacturing or providing any service or entity, as may be notified by the government from time to time. It will not include the central government or the state government or any organization owned by the central or state government. 📣 Express Explained is now on Telegram
What does the “local candidate” mean?
A candidate “domiciled in the state of Haryana” is called a local candidate and may benefit from this reserve while seeking employment in the private sector. The candidate will also be required to register on a designated portal while seeking the benefit of this reservation. The employer will also have to make the hiring through this portal, only.
Does it mean that 75% of an employer’s total workforce will be Haryana alone?
No. Any employer will be required to employ 75 percent of local candidates for positions where the gross monthly salary or wages do not exceed rupees. 50,000 or as notified by the government from time to time. Local candidates may be from any district in Haryana, but the employer shall have discretion to restrict the employment of local candidates from any district to 10 percent of the total number of local candidates. However, it will also be at the employer’s discretion whether it wishes to hire more than 10 percent of the employees of a particular district.
Can an employer also claim exemption from this 75% hiring restriction?
Yes, but only after going through a lengthy procedure and only if government-appointed officials believe that the employer’s request to apply for the exemption has merit. The employer may claim an exemption when there is not an adequate number of local candidates with a desired skill, qualification or competence. The employer must submit a request to a Designated Official (an officer not below the rank of a Deputy Commissioner), in a particular format (to be drafted later). The Designated Official will conduct an investigation and evaluate the employer’s attempt to recruit local candidates with the desired skill, qualification, or competence. The Designated Official can accept / reject the claim of the employer requesting the exemption. The Designated Official may also direct the employer to train local candidates to achieve the desired skill, qualification or competence.
How will the government control whether employers comply with the 75% reserve rule?
Each employer shall submit a quarterly report on the designated portal and mention details about the local candidates employed and appointed during that period. Reports provided by the employer will be reviewed by authorized officials who are not below the rank of Subdivision Officers. These officers will have the power to request any record, information or document in the possession of any employer for the purpose of verifying the report provided by them. The officer shall also have the right to enter the employer’s work premises to examine any record, register, or document if the officer has reason to believe that the employer has committed an offense under this Act or the rules set forth therein.
Will the employer be penalized for not following the provisions of this law?
Yes, the employer can be fined a minimum of Rs. 10,000 to a maximum of Rs. 2 lakh once it is established that the employer has committed a violation of the provisions of the law. If the employer continues to commit the offense even after conviction, a fine of Rs. 1,000 per day will be imposed until the violation continues. A penalty of Rs. An employer who produces false or falsified records or knowingly makes / produces a false statement will be charged $ 50,000. The penalty, on a subsequent offense, will not be less than Rs. 2 lakh but it can even be extended to Rs. 5 lakh.
Who can be held liable if an employer does not adhere to the provisions of this law?
When a company commits a crime under this Act, any Director, Manager, Secretary, Agent or other official or person interested in the administration will be considered guilty of the crime, unless he proves that the crime was committed without his knowledge or consent. . In the event of an offense committed by a limited liability company, all designated partners / partners will be found guilty of the offense. In the event of a crime committed by a company or trust, any person who was in charge at the time of the commission of the crime, or the person responsible for conducting the business of the company at the time of the commission of the crime will be considered guilty. . of the offense. If it is found that the infringement was committed with the consent or connivance of any Director, Manager, Secretary, Trustee or other official of the company or trust, all will be considered guilty. No court will hear of any offense punishable by virtue of this Act, unless a complaint is filed within the six months following the date on which the authorized or designated official became aware of the commission of the offense.
Why is the industry unimpressed with the move?
Several of Haryana’s top industrialists have repeatedly warned concerned authorities and government officials that restricting the employment of Haryana candidates may not benefit the industry. JJP MLA Ram Kumar Gautam strongly opposed the bill in Vidhan Sabha on Thursday and even called it “absolutely ridiculous legislation” that is “100% wrong”. Gautam expressed his fear that if Haryana implements this type of reservation, other states will also follow the same and that it will result in “total chaos”.
Does this reservation bill violate Article 16 of the Constitution of India?
Andhra Pradesh’s decision to introduce a 75% reserve for local candidates was challenged in the Andhra Pradesh High Court, which noted that it “may be unconstitutional”. The Andhra Pradesh High Court had asked the state government to report whether the quota law was enacted under the Constitution. Congressional lawmaker BB Batra raised similar concerns in Haryana Vidhan Sabha, who called the bill a violation of article 16 of the Indian Constitution. However, the Haryana government claims that while Article 16 speaks of “public employment”, the bill only refers to “private sector employment”.
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