Governor gives assent to Haryana State Employment of Local Candidates Bill; 75% reservation in private sector jobs for Haryana domiciles

Haryana Governor, Satyadeo Narain Arya on Tuesday gave assent to the Haryana State Employment of Local Candidates Bill, 2020 which mandates private firms to provide seventy-five percent reservation in employment candidates domiciled in the State of Haryana for posts carrying monthly salary of not more than Rs. 50,000..The bill was tabled and passed last year by the Haryana State legislature. .Below are the highlights of the law. .Object of the lawUnder the law, all employers are required to provide 75% of new jobs/employment to candidates domiciled in the State of Haryana. One of the main reasons cited by the government for bringing in the law was that there was an "influx of a large number of migrants competing for low-paid jobs"The statement and objects of the Act reads:"With the enactment of the present Bill, in the interest of public at large, the State is also going to encourage all the private employers in Haryana to boost local employment. The Bill will provide tremendous benefits to the private employers directly or indirectly through qualified and trained local work force. Availability of suitable workforce locally would enhance the efficiency of Industry as the workforce is one of the major components for the development of any industrial organization/factory.".Employment of 75% local candidatesSection 4 of the Act states that "every employer shall employ seventy-five percent of the local candidates with respect to such posts where the gross monthly salary or wages are not more than fifty thousand rupees."It also states that the local candidates can be from any district, but the employer may "restrict the employment of local candidates from any district to ten percent of the total number of local candidates.".“Local candidate" has been defined in Section 2(g) as a candidate who is domiciled in the State of Haryana. .Definition of 'Employer' Section 2(e) defines 'employer'. As per the same, employer does not include the Central Government or the State Government or any organisation owned by the Central Government or the State Government.It would consist of a company registered under the Companies Act, 2013 or a society registered under the Haryana Registration and Regulation of Societies Act, 2012 or a limited liability partnership firm as defined under the Limited Liability Partnership Act, 2008 or a trust as defined under the Indian Trust Act, 1882 or a partnership firm as defined under Indian Partnership Act, 1932 (Central Act 9 of 1932) or any person employing ten or more persons on salary, wages..The designated 'portal'Section 4 provides that no person shall eligible to redeem the benefits of the concerned Act, until and unless such local candidate is registered under the designated portal. Further, as per Section 3, every employer has to register such employees receiving gross monthly salary or wages not more than Rs. 50,000 on the designated portal. Section 2(d) defines “designated portal” as a portal specifically designed and designated for the purpose of registration of local candidates and employees under sections 3 and 4. .ExemptionSection 5 provides that the employer may claim exemption from the requirement of Section 4, where adequate number of local candidates of the desired skill, qualification or proficiency are not available. The exemption can be claimed by applying to the Designated Officer. The Designated Officer may accept or reject the claim after making such inquiry, as he deems fit. Section 2(c) defines “Designated Officer” as an officer of Government not below the rank or equivalence of the Deputy Commissioner as may be designated by notification in Official Gazette, by the Government.Submission of a quarterly report Section 6 of the Act states that the employer of the establishment, has to furnish/file a quarterly report regarding number of local candidates who have been employed and appointed during the concerned quarter on the 'designated portal'. Section 7 states that the reports furnished by the employer will be examined by an Authorised Officer. As per Section 2(b), an “Authorised Officer” means an officer of the government not below the rank or equivalence of the Sub-Divisional Officer (Civil) or any other officer as may be designated as such by notification in Official Gazette, by the government for the purpose of Section 7. .Penalties under the Act If an employer contravenes the provisions under Sections 3, 4 and 5 of the Act, then he shall be guilty of an offence punishable with penalty. If an employer contravenes Section 3 he shall be punishable with penalty shall not be less Rs. 25,000 but which may extend to Rs. 1 lakh and if the contravention is still continued after conviction, with a further penalty which may extend to Rs. 500 for each day till the time contravention continues.Violation of Section 4 will attract a penalty of not less than Rs. 50,000 but which may extend to Rs. 2 lakh and if the contravention is still continued after conviction, with a further penalty which may extend to Rs. 1,000 for each day till the time contravention is so continued. For contravention of Section 5, the penalty shall be between Rs. 10,000 and Rs. 50,000 and if the contravention is still continued after conviction, with a further penalty which may extend to Rs. 100 rupees for each day till the time contravention continues. .Power vested with the Authorized Officer Under the Act, the Authorized Officer has been given the right to 'enter the premises of the establishment 'at all reasonable times with assistance' for performing the following functions. To discharge the functions vested under Section 6 of the Act. To determine whether and if so in what manner, any such functions are to be performed or whether any provisions of this Act or the rules made thereunder are being or have been complied with. To examine any record, register, document when he has reason to believe that an offence under this Act or the rules made thereunder has been or is being committed. .Offences by companies, limited liability partnership firms and trustCompany: Section 16 states that if the offence under the Act is committed by a company then every manager, secretary, agent or other officer or person concerned with the management thereof shall, unless he proves that the offence was committed without his knowledge or consent, be deemed to be guilty of such offence. Limited Liability Partnership Firm: Section 17 states that when an offence is pursued under the Act, by a LLPF and it is proved that it has been committed with the consent or connivance of a partner of the limited liability partnership, then the partner or partners or designated partner or designated partners of the limited liability partnership, as the case may be, as well as that limited liability partnership shall be guilty of the offence and shall be liable to be proceeded against and punished accordingly. Society/Trust: Section 18 states that where an offence under this Act has been committed by a society or trust, every person who at the time the offence was committed was in charge of, and was responsible for the conduct of the business of the society or the trust, as the case may be, shall be deemed to be guilty of the offence. .The Act shall have an overriding effect and also bars any legal action against any Authorized Officer or Designated Officer for anything which is done in good faith, or intended to be done in pursuance of provisions of this Act.It was reported that Deputy CM Dushyant Chautala informed that the Governor has given his assent and soon the government will be notifying the detailed rules and regulations in the official gazette..[Read Haryana State Employment of Local Candidates Bill, 2020]