Industries and multi-national companies in Haryana want the government to reconsider the recently approved bill that reserves 75 per cent jobs, with monthly salary of less than Rs 50,000, for local residents.
They say the new bill, which allows companies to hire workforce from other states only after government’s approval, would make it difficult to get candidates with the right skillset on time. Indicating at bureaucratic red tape, they added it could even force companies to shift base to states with friendlier policies.
“In Gurgaon, IT and IT-enabled service-based companies employ around 4-5 lakh people per year, and provide indirect employment to another 6-7 lakh people. The bill will not only impact big multi-national companies, but also put pressure on start-ups planning to set up their units in Gurgaon. They may relocate to a state with favourable laws,” said Vinod Sood, a member of IT trade association body NASSCOM.
However, those in the job market seem thrilled by the prospect, even though the bill is yet to get the governor’s assent.
“I took to the streets demanding reservation during 2016 (Jat agitation). A case was filed against me and I was acquitted, but I lost precious years in the meantime. The state government’s move will help Haryana’s young population,” said Kaithal district’s Amit Kumar, who is unemployed.
At 33.5 per cent, Haryana has one of the highest unemployment rates, which increased further after the coronavirus shutdown.
With the proposed law, the state government is seen as trying to win over the youth who were promised 75 per cent jobs by the ruling combine constituent – Jannayak Janata Party – ahead of the 2019 Assembly polls.
“We have passed this law which will help our young men and women get jobs in Haryana. We took this decision after consulting the private sector,” said Deputy Chief Minister and JJP chief Dushyant Chautala.
Bodies representing private sector companies, however, are unimpressed saying it would impact the ease of doing business.
“On the one hand, PM Modi is working on increasing ease of doing business and on the other BJP-governed Haryana is enacting laws that put industry at a disadvantage,” Mr Sood said.
Some JJP legislators are also questioning if reservation is the only way to increase employment opportunities, and would such quotas even help achieve the desired result.
“You can make any number of laws, but the fact is that even to harvest crops we have to get people from Bihar and other states,” JJP legislator Ram Kumar Gautam said.
The bill reserving 75 per cent jobs for locals applies to all companies, societies, trusts, firms in the state with more than 10 employees. It dictates that no company can hire a new person until they upload information on number of posts with less than Rs 50,000 salary, and how many are occupied by locals.