Karnataka cabinet approves draft bill mandating 50% reservation for locals in management jobs, 70% in non-management categories

Labour department officials said that while the cabinet has approved the draft bill, it is yet to be tabled in the assembly.

Karnataka cabinet has approved the draft State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, mandating 50 percent of management jobs and 70 percent of non-management roles to be reserved for local candidates (Kannadigas).

The draft bill mandates that local candidates without a secondary school certificate in Kannada must pass a specified Kannada proficiency test. In cases where qualified local candidates are unavailable, industries/factories/establishments are required to collaborate with government agencies to train and engage local talent within three years.

This applies to the private sector, including IT companies. Karnataka Labour Minister Santosh Lad told Moneycontrol: "The bill mandates giving priority to Kannadigas, especially since many private firms avail subsidies and other benefits from the government to set up establishments. Therefore, we aim to create more jobs for local Kannadigas." He said the draft bill will be tabled during the current  legislature session.

Lad added that the bill aims to provide opportunities for local candidates in industries, factories, and other establishments in the state.

According to the draft bill, any employer, occupier, or manager of an establishment failing to comply with these provisions could face penalties ranging from Rs 10,000 to Rs 25,000. The repeated violations could lead to additional penalties of Rs 100 per day till compliance is achieved.

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The state cabinet also approved a 100% quota for Kannadigas in Group C and Group D jobs (blue-collar workers) in the private sector.

Who qualifies as a local candidate?

According to the draft bill, a 'local candidate' refers to someone who is born in Karnataka, has been domiciled in the state for 15 years, is fluent in Kannada, and passes a required test by the nodal agency.

The 'management category' includes supervisory, managerial, technical, operational, administrative, and higher roles, excluding directors. The 'non-management category' comprises clerical, unskilled, semi-skilled, skilled, IT/ITES employees, and contract or casual workers in various establishments.

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The bill also includes provisions for industries or establishments to apply for relaxations from the mandated quotas under certain conditions, subject to government approval. However, any relaxation granted shall not be less than 25 percent for management positions and 50 percent for non-management roles.

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The nodal agency, designated to oversee compliance, will verify reports submitted by employers and have the authority to request additional information or documents as needed. Additionally, the government may appoint an authorised officer to ensure adherence to the provisions outlined in the Act.

Labour department officials said that while the cabinet has approved the draft bill, it is yet to be tabled in the legislature.

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