Haryana Reserves 75% Private Jobs For Locals, Will It Improve Livelihood Or Hurt Investment Opportunities?

Law that provides 75 per cent reservation in the private sector to job seekers from Haryana has came into effect in the state on January 15, 2022. Deputy Chief Minister Dushyant Chautala said it will open new avenues of employment for thousands of youth.

The Haryana State Employment of Local Candidates Act, 2020, applies to jobs offering a maximum gross monthly salary or wages of Rs 30,000. Chautala termed it as a historic move for the youth, fulfilling his party's (Jannyak Janta Party) key poll promise.

The labor department has also created a dedicated portal where companies will have to reflect the number of vacancies, which the government will constantly monitor. In addition, a helpline number will also be launched.

In the 2019 Haryana Assembly polls, the Bhartiya Janata Party(BJP) had formed the government in alliance with the JJP, after falling short of a simple majority.

In November, Chief Minister Manohar Lal Khattar had said the government will make the Haryana State Employment of Local Candidates Act, 2020 applicable with effect from January 15, 2022, NDTV reported.

In 2021, the state government had said the said Act will apply to employers of private sector companies, trusts, societies, partnership firms, limited liability partnership firms, and any individual who employs 10 or more people on salary, wages, or other remuneration for manufacturing, rendering any service or carrying on business in Haryana.

Other States To Make It Compulsory

During the past few months, several states in the country have also stepped up to pass laws making it mandatory for companies to prefer the locals for employment opportunities. States like Madhya Pradesh, Andhra Pradesh, Karnataka, Gujarat, and Maharashtra are on the list that has similar policies.

As per reports, such a move aimed at benefiting the local youth is increasingly becoming popular in other regions.

Pros And Cons

While these initiatives were both welcomed and criticised in equal measure, it is expected that more states will follow suit in the months to come.

Experts believe that the main reason is the perception that outsiders and migrants are "taking away the jobs" meant for the local population.

In addition, it is also a trend that ties into the overall Immigrant and Outsider Scapegoating that is manifesting itself not only in India but, in other countries as well.

The law in Haryana had raised concerns among foreign business groups. One Korean logistics company that shifted operations to Gurugram drew alternate plans as its skilled workforce couldn't meet requirements under the new law, The Times of India reported.

The 'Not So Good' Move Argument

Millions of jobs were lost during the first wave of the COVID-19 lockdown, Prime Minister Narendra Modi's promise of generating adequate employment opportunities for the world's biggest workforce as the economy suffered a huge blow since 1952. Now more states are pushing companies to hire locals, setting up internal trade barriers to further hinder growth in Asia's third-biggest economy.

In 2019, Andhra Pradesh led the way with a step for reserving jobs for locals in factories. Jharkhand then approved a similar policy in 2020, while a prominent regional party in Tamil Nadu also promised a job-protection plan if the party came to power.

While the laws are aimed at helping young workers, labour rights advocates warned they are not compliant with constitutional guarantees including freedom of movement, a right to livelihood, and no discrimination based on place of birth.

If jobs are reserved for a certain section of society, there are chances that some of such jobs would be done by people who might be less qualified than the individuals who would be hired in the first place. Companies, at the end of the day, operate to generate profits and any additional upskilling training would mean additional cost to the firm.

The 'Good Move' Argument

However, some believe that certain good points should be factored in through such initiatives —the main among them being the need to actualise and redress the grievances of the local population.

Indeed, anti-outsider sentiments burst when the 'economic pie' is unevenly distributed wherein the locals perceive that outsiders are gaining more shares from economic growth.

Moreover, experts said that there is a need to preserve regional languages and cultures and not fall prey to the temptation to impose a common language on all people. Apart from this, the world over, many experts often stress on the need to assimilate into the local conditions, meaning outsiders and migrants learning the regional language and observing the local culture.

Practical thinking highlights the possibility for fewer accidents and mishaps on the shop floor of manufacturing firms if the jobs are reserved for locals since there are lesser chances of communication gaps leading to such incidents. Hiring locals who are familiar with the language and terrain is critical in customer-facing roles and hence, is important to reserve jobs for locals.

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