Why in news
The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, aims to provide reservation for Kannadigas in the private sector.
The legality and constitutionality of quotas for local candidates are in doubt.
Similar measures in other states have encountered legal challenges.
Industry Concerns:
Fear of companies leaving the State.
Potential negative impact on foreign investment.
NASSCOM (a not-for-profit industry association, is the apex body for the $245 billion technology industry in India) called the Bill "deeply disturbing," potentially hampering industry growth, jobs, and Karnataka's global brand.
Described as regressive and short-sighted, potentially affecting Karnataka’s leading position in technology.
Similar Laws in Other States:
Andhra Pradesh:
The Andhra Pradesh Employment of Local Candidates in the Industries/Factories Act, 2019, mandated 75% reservation for local people in any industry or factory.
Provided a three-year period for training and engaging local candidates.
Challenged in the Andhra Pradesh High Court; not zealously implemented by the government.
Haryana:
The Haryana State Employment of Local Candidates Act, 2020, mandated 75% reservation in the private sector for jobs with a salary of up to ₹30,000 a month.
Included a sunset clause lapsing after 10 years.
Struck down by the Punjab and Haryana High Court; the matter is now before the Supreme Court.
Jharkhand:
The Jharkhand Definition of Local Persons Bill provided 100% reservation for locals in Class III and IV employment.
Returned by the Governor citing potential unconstitutionality.
Re-enacted by the Hemant Soren government in December 2023.
Constitutional Issues:
The Constitution does not provide for private sector job reservation.
State Assemblies lack legislative power to prescribe residential criteria for employment.
Article 16 ensures equality of opportunity in public employment.
Prohibits discrimination based on race, religion, caste, sex, descent, place of birth, or residence.
Article 16(3) allows Parliament to prescribe residence requirements for public office employment.
Article 35(a) grants only Parliament the power to enact such laws.
Article 19(1)(d) guarantees freedom of movement throughout India.
Article 19(1)(e) guarantees the right to reside and settle in any State.
Article 19(1)(g) guarantees the right to carry on any occupation, trade, or business, which local quotas may infringe upon.
COMMENTS