Haryana’s 75% job reservation law will not negatively impact industry, says Khattar

Government working out a way so that only semi-skilled and unskilled labour come under purview of the Act, says CM

Haryana’s recently enacted law providing 75 per cent reservation in the private sector to job seekers from the state shall not “negatively impact” the industry, chief minister Manohar Lal Khattar assured on Friday while interacting virtually with a delegation of the Confederation of Indian Industry (CII).

During the interaction, Khattar also disclosed that the state government was also working towards reducing the cap of Rs 50,000 a month gross salary as mentioned in the Act, so that only unskilled and semi-skilled labour come under the purview of the new Act.

“The chief minister assured that the state government is with the industry and the rules being currently framed for the Act are such that there will be no harassment of units in the state. The chief minister also emphasised that the state government is working towards reducing the cap of Rs 50,000 a month gross salary as mentioned in the Act, so that only unskilled and semi-skilled labour come under the purview of this Act,” a press release issued by the CII read.

In March this year, the then Governor SN Arya had given his assent to the Haryana State Employment of Local Candidates Bill, 2020, providing 75 per cent reservation for those who had a domicile certificate and were seeking private-sector jobs that offer a monthly salary of less than Rs 50,000 a month.

“The Chief Minister said that through the Haryana Enterprises and Employment Policy 2020, the state government has provided a number of incentives to the industry for promoting employment of local youth as well as ensuring developement of backward areas. He requested the industry to come forward and work together with the state government in achieving Haryana’s overall development. Appreciating the relief and rehabilitation work undertaken by CII and the industry during the first and second waves of Covid-19, the Chief Minister said it was good to see that the industry had come forward and supported the state in its hour of crisis,” the CII’s press release read.

Highlighting the state’s preparedness in case there is a third wave of Covid-19, Khattar said, “The state is working towards setting up oxygen generation plants in 136 community health centres of the state and is also developing a mechanism so that there is no shortage of essential medicines”.

“Abhimanyu Munjal, chairman of CII northern region and joint MD & CEO of Hero FinCorp Ltd, assured the Chief Minister that the industry has always been on the forefront to work shoulder-to-shoulder with the state government in its fight against such crisises and will continue to lend its support”, CII press release added.

Rajiv Gandhi, chairman of the CII Haryana State Council, emphasised that while the state has been able to attract huge investments with various industry-friendly initiatives, the Haryana State Employment of Local Candidates Act 2020 has put on hold investment and expansion plans of many business houses, which is not a good sign.

“Rajiv Gandhi also requested the Chief Minister that some alternative mediums can be considered to address the issue of job creation for the youth in Haryana and said the job reservation law should not be forced upon the industry in the state,” the CII statement read, adding that Gandhi also assured the industry’s full support in increasing the employability of the state’s youth through skill development and various other means, as suggested by the state government.

Under the Act, an employer can be fined a minimum of Rs 10,000 and a maximum Rs 2 lakh once it is established that they have committed a violation of provisions of the Act. If the employer continues to commit the violation even after conviction, a penalty of Rs. 1,000 per day till the violation continues shall be imposed. A penalty of Rs. 50,000 shall be levied on the employer who produces false records or counterfeits or knowingly makes/ produces a false statement. The penalty, on a subsequent offence, shall not be less than Rs 2 lakh but may even extend to Rs 5 lakh.

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