Haryana has notified the State Employment of Local Candidates Act 2020, which reserves jobs for locals. It is a retrograde development which can catalyse the balkanisation of India’s labour market. The law applies to all organisations which employ ten or more people. It’s obligatory for employers to adjust recruitment in a way that 75% of jobs that pay a gross monthly salary of up to Rs 50,000 are reserved for locals.
To put it in context, Haryana has reserved 75% of jobs that pay up to almost five times India’s monthly per capita income. This move will have a number of adverse effects. Among the more important ones is that it will defeat the underlying purpose of the legislation. It will drive jobs out of the state as it makes it unviable for businesses to follow the law in letter and spirit, reducing the total number of jobs available. The other consequence is that it will encourage informalisation of labour, as employers look for ways to both compete in the market and follow the law.
The law does carve out exceptions by allowing employers to seek permission for waivers if there are not enough qualified locals available. However, that opens the door to a licence-permit-quota raj and corruption is almost inevitable in its train. Haryana is not an exception. Andhra Pradesh assembly in 2019 passed a similar law. Nativism weakens the bonds that unite India and violates the fundamental right of Indians to seek a livelihood anywhere in the country. Haryana has resorted to this step despite having a BJP chief minister, Manohar Lal Khattar. BJP, a party that claims to be nationalist, shouldn’t pander to nativism. Prime Minister Narendra Modi should persuade his colleague to see reason in national interest.
This piece appeared as an editorial opinion in the print edition of The Times of India.
Top Comment
Ashok
12 minutes ago
50,000 rupees per month is a substantial cut off point. In the IT industry or back end offices, it would cover fairly skilled people. In manufacturing, virtually the entire labour force. The Island or Republic of Haryana. Had it not been for Sardar Patelâ s foresight in creating All India Services, with a laid down proportion of insiders and outsiders, politicians would have liked nothing better than to have the entire bureaucracy and especially the police force consist of residents of the state. If great care is not taken, one might soon need an Inner Line Permit to visit Panipat or Kurukshetra as a tourist. On a scale of folly, this decision is just one step behind extending reservations to the private sector. If 2024 becomes an unexpectedly tough election, that too might be decreed. 2. The companion Edit argues that this law should be challenged in a Court of law. Certainly it is violative of fundamental rights that flow from our shared citizenship. However, going beyond the letter of the law, these are really matters of governance and sound public policy. Beyond a point, the higher judiciary cannot weigh in on everything, including invoking Sedition against Ms Disha Ravi. Nor are they expected to run the country. It is for the rulers to envision the sort of country we wish to create. Whether bonds of unity require something more substantive than ceremonial parades. 3. The nub of the issue is watering holes drying up after a long summer drought. Two crore jobs not being created each year. Job losses, in fact, predating the pandemic. If underlying causes are not remedied, expect more such half baked, possibly unconstitutional, decisions to be taken.... Read More