The Haryana legislative assembly passed the ‘Haryana State Employment of Local Candidates Bill, 2020’ on 5 November 2020 (as per media reports). The Bill provides for employment of 75% of local candidates (domiciled in the state) by employers in the state of Haryana, with respect to such posts where the gross monthly salary or wages are not more than Rs. 50,000. The Bill applies to Companies, Societies, Trusts, Limited Liability Partnerships Firms, Partnership Firm etc., and any person employing ten or more persons on salary, wages or other remuneration for the purpose of manufacturing or providing any service or any entity, as may be notified by the Government from time to time. The Bill has been opposed for contravention of Article 14 and 19 of the Constitution and the right to practice any profession anywhere in India. Upon coming into force, the Act will cease to have effect on the expiry of ten years from its commencement, except as respect things done or omitted to be done before such cesser.

This legislation has been introduced with the aim of alleviating the social, economic and environmental issues stemming from the influx of a large number of migrants competing for low-paid jobs causing a significant impact on local infrastructure and housing and leading to proliferation of slums. The availability of suitable workforce locally is expected to enhance the efficiency of Industry.

The salient features of the Bill are as follows:

• Applicability: Once enforced, the Act will apply to all the Companies, Societies, Trusts, Limited Liability Partnership firms, Partnership Firm and any person employing ten or more persons on salary, wages or other remuneration for the purpose of manufacturing or providing any service or any entity as may be notified by the Government from time to time. The Bill does not apply to the Central or State Government as employer or to organisations owned by them.

• Employment of 75% local candidates ; gross monthly wages of up to 50,000 ; up to 10% from one district: Every employer shall employ seventy-five percent of the local candidates with respect to such posts where the gross monthly salary or wages are not more than fifty thousand rupees or as notified by the Government, from time to time. While such local candidates may be from any district of the State, however the employer may, at his option, restrict the employment of local candidates from any district to ten percent of the total number of local candidates.

• Compulsory registration and recruitment of candidates: Employers shall, within three months’ from the date of coming into force of the Act, register such employees receiving gross monthly salary or wages not more than fifty thousand rupees or as notified by the Government, from time to time, on a ‘designated portal’, specifically designed for this purpose. No person can be employed or engaged by any employer till the registration of all such employees is completed on the designated portal. Local candidates shall be eligible to avail benefits under this legislation only if they register themselves on the designated portal. The process of such registration shall be as prescribed under the rules notified by the Government, from time to time.

• Exemption from employment of local candidates: Where adequate number of local candidates of the desired skill, qualification or proficiency are not available, employers may claim exemption from the reservation in recruitment imposed under the legislation by applying to the Designated Officer in the prescribed form and manner. The Designated Officer, in turn, may either accept/reject the claim after making due enquiry or direct the employer to train local candidates to achieve the desired skill, qualification or proficiency. An appeal against an order of the DA may be preferred before the Appellate Authority within sixty days.

• Offences and penalties: The Bill provides for both general penalty and separate penalties for contravention of specific provisions. In case of any contravention of its provisions or rules or of any order in writing given under this legislation, an employer shall be liable to a penalty of not less than ten thousand rupees, which may extend upto fifty thousand rupees. Where the contravention is continuing after the conviction, a penalty which may extend to one hundred rupees for each day till the time contravention is so continued shall be imposed.
  Specifically, where the reservation requirement in recruitment of employees is contravened, the penalty imposed shall not be less than fifty thousand rupees and may extend to two lakh rupees. For continued contravention after conviction, a further penalty which may extend to one thousand rupees for each day till the time contravention is so continued shall be imposed.
  Directors, partners, trustees, as applicable, of companies, LLPs and trusts/societies, are liable for offences committed by such employers.

• Cognizance of offences and limitation on prosecution: Courts have been empowered to take cognizance of offences under this legislation only if the complaint has been filed within six months of the date of alleged commission of offence.

A copy of the Bill, published on 31 October 2020 in the Haryana Government Gazette, is available on below link.

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