75% Haryana job quota law kicks in, firms pin hopes on court

New Delhi, January 16

Perturbed over the new law requiring private companies in Haryana to reserve for local candidates 75 per cent of jobs with salary up to Rs 30,000 a month, BPOs and IT companies dotting Gurugram and other locations are hoping for a positive outcome of their legal fight.

Fear of red tape

• Law requires firms to reserve 75% jobs with salary up to Rs30,000 for locals
• A plea against law will be heard in Punjab & Haryana High Court on February 2
• Pvt firms fear vulnerability to inspector raj and hurdles in filing reports

New hiring on hold

• Private sector hiring has stopped since January 15
• Firms required to register staff getting up to Rs30,000/month on government portal
• Quarterly reports on jobs to locals are also to be filed

The Punjab and Haryana High Court last week dismissed a plea on the matter for an early hearing. It will now hear the plea on February 2. A similar case is being heard in a court in Haryana.

The new law, called the Haryana State Employment of Local Candidates Act-2020, was implemented on Saturday. Though the government had listened to the concerns of the companies, there is fear of vulnerability to the inspector raj and hurdles in filing quarterly job reports. Sources said the government had made certain amendments such as reducing the domicile requirement from 15 to five years and salary limit from Rs 50,000 to Rs 30,000. Besides, new companies are exempted for two years.

“Many restrictions are against the concept of one nation,” said Pradeep Multani, president, PHD Chamber of Commerce and Industry. Others see a more damaging impact. One of the petitioners, Raghav Chawla, sees a GST-like situation with quarterly filings and frequent inspections.

“A rule that seeks to arbitrarily control the working of market forces will affect the functioning,” fears Confederation of Indian Industry (CII) Haryana office-bearer Harbhanjan Singh.

As an immediate effect, the private sector hiring has stopped since January 15 as employers are required to register employees getting up to Rs 30,000 a month on a government portal within three months.

This is in addition to a quarterly report on local candidates employed with aggrieved applicants free to seek action against the employer by filing an e-complaint on the portal.