Haryana’s private job reservation law worries companies

The Haryana law reserving 75% of private sector jobs with monthly pay of up to Rs 50,000 for people of the state has been approved by the governor, chief minister Manohar Lal Khattar said on Tuesday. The state legislature had passed the legislation last year. Some experts said it could trigger a dangerous trend if other states adopted similar legislation.
The Haryana State Employment of Local Candidates Bill applies to private companies, societies, trusts and partnership firms. It’s aimed at reducing unemployment and discouraging migrants, which has a “significant impact” on local infrastructure and leads to the “proliferation of slums,” according to the state government. Domicile status will be given to those born in the state or living there for at least 15 years. The reservation, which will initially apply for 10 years, was a poll promise of D ..
“As a general principle, all industry associations including CII have taken the view that reservation of this kind is not conducive to the competitiveness of the industry,” said Maruti Suzuki chairman RC Bhargava
He declined to give his personal views on the matter before the rules were finalised.
The bill could impede business recovery, said a senior executive at a large Gurgaon-based consumer-facing multinational firm. “It will require widespread recalibration of jobs and pap ..
The bill stipulates that companies can hire from outside the state if suitable local candidates cannot be found but the government has to be informed.
“The move goes against the basic principle of meritocracy that acts as the foundation for businesses to grow and remain competitive,” said Rituparna Chakraborty, cofounder of staffing firm TeamLease Services. “Such protectionism when clearly there are encouraging signs of economic recovery should not scare employers, costing the state th ..
“Whilst we encourage employment generation, if we could find a better solution, it would’ve been easier,” said Sunjay Kapur, chairman of automotive components maker Sona Comstar and vice president of the Automotive Component Manufacturers Association of India (ACMA). “We don’t want to be in a situation where we are not competitive with other states. We want to hire the best talent available, we don’t necessarily want to hire from outside. If there are restrictions, it could become a challenge.” ..
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