The ill effects of Job reservation for locals

The ill effects of Job reservation for locals

Haryana’s new reservation law is taking work from home to the next level. The state government has launched a new scheme, which reserves 75 percent of private-sector jobs, which pay up to ₹50,000 per month, for people with a local address.

Major provisions of Haryana’s Law

The Haryana State Employment of Local Candidates Act of 2020 seeks to provide for a 75 per cent job reservation for local people in private-sector jobs.

Apart from Haryana, States such as Madhya Pradesh, Karnataka, Andhra Pradesh also tried to provide Job reservation for locals.

Firms and companies need to register all of their employees receiving a gross salary of Rs 50,000 or less on a government portal and update it at regular intervals.

An exemption can be claimed by employers when there enough number of local candidates are not available with the desired skills, qualifications, and proficiency. However, an officer of the rank of deputy commissioner or higher will evaluate such a claim.

Issues with Job reservation for locals

This law is not consistent with the provisions of the constitution. Especially Article 19(1)(g) and Article 16(2). Article 19 (1)(g) talks about right to carry on any occupation, trade or business. It is indeed a fundamental right for every individual citizen.

As the Preamble of the Constitution says that it aims to provide justice, social, economic and political; equality of status and opportunities; and to promote among citizens fraternity assuring the dignity of the individual and there by creating an atmosphere for its growth in all fields.

The Law creates barriers for businesses by attaching severe monetary penalties for alleged non-compliance. The penalties can go up to Rs. 2,00,000 rupees.

Apart from that, the government will have the power to enter firms’ premises for inspections. This could possibly bring back the ‘Inspector Raj’ system. This process discourages employers from operating in the State. Further, It will lead to decreasing local jobs and increasing the unemployment rate in the long run.

The law will be an example for more such laws from State governments. This will lead to a mass departure of investors from India.

The law is completely against the Prime Minister’s vision such as ‘Ek Bharat Shreshtha Bharat’ and ‘One Nation One Market’.

Which States launched the Job Reservation scheme?

Five states – Andhra Pradesh, Gujarat, Karnataka, Maharashtra and Tamil Nadu – have earmarked jobs in the private sector for local candidates. The Delhi government is considering a similar move. In each of these cases, the intention is to prevent migrants from other states from getting jobs in their states, thereby supposedly reducing crime and ensuring that non-local workers do not seek to settle there.

Global Issue with Job Reservation

There are many jobs in this country which would be done by Indian citizens but for the laws that reserve them for people from outside. There are big companies and small firms which have flourished by virtue of the overseas and non-local workforce.

And there are thousands of techies who would be gainfully employed and contributing to our GDP if they could get visas to work here. This is why we need some serious course correction in the thinking that guides our laws on employment.

It is imperative that the centre stops local lawmakers from making rules and regulations that discourage job reservation for locals because these will only lead to a work visa regime within India.