The Karnataka government has approved a legislation that made it mandatory for all private industries to hire only Kannadigas in Group C and Group D categories, chief minister Siddaramaiah said in a tweet on Tuesday.
The Bill mandates industries, factories and other establishments to appoint 50% of local candidates in management categories and 75% in non-management categories.
According to the provisions, violation of the provisions of The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, would attract a penalty of up to Rs 25,000.
What are the Provisions of the Bill?
To qualify for reserved positions in management and non-management categories, candidates must have a secondary school certificate with Kannada as a language or pass a Kannada proficiency test set by a designated nodal agency.
If qualified or suitable local candidates are not available, the industry or factory or other establishments should take steps to train and engage local candidates within three years.
According to the Bill, there is a clause, which provides relaxation to the industries “if sufficient number of local candidates are not available”. In such a case, these establishments could apply for relaxation from the provisions of this Act to the Government and “after due enquiry the Government may pass appropriate orders.”
A nodal agency will also be set up under the Act which will verify reports on people employed by Industries. It will also submit a periodic report to the government.
The companies, which will not follow the provisions of the Bill, will attract a penalty of Rs 10,000 to Rs 25,000, and Rs 100 will be collected every day until the local employer count is as per the bill.
Who is a Local Candidate?
The Bill defines a ‘local candidate’ as an individual born in Karnataka, residing in the state for at least 15 years, fluent in Kannada and passing a test administered by the nodal agency.
Management category includes supervisory, managerial, technical, operational, administrative, and higher roles, with the exception of directors.
Non-management category covers clerical, unskilled, semi-skilled, skilled, IT/ITES employees, and contract or casual workers in various establishments.
In February, the minister for Kannada and culture, Shivaraj S Tangadagi, told the legislature that all MNCs operating in the state must prominently display the number of Kannadigas employed on notice boards. He also said failure to comply with this requirement could result in the revocation of permissions granted to these companies.
What are Industry Leaders Saying?
Several industry leaders have criticised the government’s move, calling it “discriminatory”, and raised apprehensions that the tech sector may suffer.
Mohandas Pai, the Chairman of Manipal Global Education Services said that the Bill is “fascist” and also unconstitutional. “This bill should be junked. It is discriminatory, regressive and against the constitution @Jairam_Ramesh is govt to certify who we are? This is a fascist bill as in Animal Farm, unbelievable that @INCIndia can come up with a bill like this- a govt officer will sit on recruitment committees of the private sector? People have to take a language test?” Pai said in a post on ‘X’.
Kiran Mazumdar-Shaw, the Executive Chairperson of Biocon Limited, said Karnataka should not let this Bill affect its leading position in IT, and there should be some exemptions for highly skilled recruitment.
“As a tech hub, we need skilled talent and whilst the aim is to provide jobs for locals we must not affect our leading position in technology by this move. There must be caveats that exempt highly skilled recruitment from this policy,” Shaw posted on ‘X’.
RK Misra, the Co-Chairman of ASSOCHAM Karnataka and the Co-Founder of YULU called the Bill “shortsighted” and said if a government officer is appointed in every private company to monitor its implementation, it will scare away Indian IT and Global Capability Centres.
“Another genius move from Govt of Karnataka. Mandate LOCAL RESERVATION & APPOINT GOVT OFFICER IN EVERY COMPANY to monitor. This will scare Indian IT & GCCs. Short-sighted,” Misra posted on ‘X’.