The state’s IT, commercial and industrial hub of Gurgaon-Manesar is home to the offices of Pepsi, Coca-Cola, Google, Nestle, Hindustan Unilever, Reckitt Benckiser, American Express, Samsung and others, as well as the factories of
and Hero MotoCorp.
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 Dushyant Chautala‘s Jannayak Janta Party (JJP), the BJP’s coalition partner in the state.
(TCS), Infosys, Wipro and HCL Technologies besides outsourcing firms such as Genpact and Convergys, along with a number of startups including Zomato and Roposo. Haryana has said previously that nearly 5% of global BPO workers are housed in Gurugram.
“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 paperwork, which will delay processes,” the person said.
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 the much-needed jobs–now and in the long run.”
The industrial belt across Gurgaon and Manesar is a hub…
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