The Confederation of Indian Industry (CII) objected to the legislation of Haryana government that sanctions 75 percent quota for locals in private jobs. Such reservation affects productivity and competitiveness, the advocacy group said on March 3.
"At a time when it is important to attract investments at State level, the Haryana Government could have avoided imposing restrictions on Industry," CII Director General Chandrajit Banerjee said.
"Reservation affects productivity and industry competitiveness," he said, appealing the Haryana government to reconsider the bill which has brought the quota for locals into effect.
"With Prime Minister’s vision of ‘Ek Bharat Shrestha Bharat’ we look forward to an integrated and mobile labour market within the country," Banderjee added.
The Haryana State Employment of Local Candidates Bill, 2020, tabled in the legislative assembly last year by Deputy Chief Minister Dushyant Singh Chautala, was approved by Governor Satyadev Narayan Arya on March 2.
The law reserves three-fourth of all private sector jobs - up to Rs 50,000 monthly salary slab - for residents of the state.
The private companies would be required to register details of all natives hired by them on a monthly salary of up to Rs 50,000.
A penalty ranging from Rs 10,000 to Rs 2 lakh would be imposed on the employer on the failure to adhere to the law.
A provision in the bill allows the private companies to hire non-state employees above the 25 percent permissible limit if they do not find a suitable local candidate. However, the approval of government is necessitated for such hirings.
The quota for locals in private jobs, according to the state government, is aimed at addressing the issue of unemployment. At 26.4 percent, Haryana has the highest rate of unemployment across India.
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