(NTI): In a significant legislative move, the CM Siddaramaiah Cabinet in Karnataka has greenlighted a bill mandating private sector employers to prioritize hiring locals. This law stipulates a 50% quota for managerial positions and a 70% quota for non-managerial roles.
Chief Minister Siddaramaiah announced on X that the state cabinet had ratified the bill, necessitating all private enterprises within the state to employ only Kannadigas for lower-grade (Group ‘C’ and ‘D’) roles. However, the Chief Minister later retracted the post following public outcry. The bill’s draft language does not explicitly mention a complete reservation for Groups C and D positions.
“It is our government’s fervent desire that Kannadigas should not be deprived of employment opportunities in the land of Kannada and should be afforded the chance to establish a prosperous life in their homeland,” Siddaramaiah elaborated, clarifying the administration’s stance. Emphasizing his administration’s commitment to the welfare of Kannadigas, Siddaramaiah branded his government as “pro-Kannada.”
Following substantial backlash, the state government pledged to engage with the business community and address their concerns.
Provisions of the Bill
The bill outlines that a local candidate must be proficient in speaking, reading, and writing Kannada, born in Karnataka, and have resided in the state for a minimum of fifteen years.
Candidates are required to have completed secondary education with Kannada as one of their language subjects. If not, they must pass a Kannada proficiency test specified by a government-notified nodal agency, according to the bill.
In collaboration with the government, companies should endeavor to train local candidates within three years if there is a dearth of qualified applicants. Businesses can request an exemption if they are unable to find a sufficient number of qualified locals. However, the bill stipulates that the relaxation must be at least 25% for management categories and 50% for non-management categories.
Penalties for violating the Employment of Local Candidates Act may range from INR 10,000 to INR 25,000.
Anticipated Outcome
The bill’s approval comes amid calls for a comprehensive quota of Kannadigas in government jobs.
In July, Kannada organizations, citing the Sarojini Mahishi report, which advocated for local quotas in both public and private sector employment, staged rallies across the state demanding its immediate implementation.
The 1984 report, submitted by Mahishi, the first woman member of parliament from Karnataka and a former union minister, recommended 100% local hiring for Group C and D positions in Karnataka-based public sector enterprises (PSUs) and central government agencies, among its 58 suggestions.
Specific Quotas Detailed
To comply with the legislation, businesses must hire locals for at least half of their managerial positions and three-quarters of their non-managerial roles. Except for directors, everyone in supervisory, managerial, technical, operational, or higher positions in any business, organization, or facility is considered part of the management team. Non-management roles encompass clerical, unskilled, semi-skilled, skilled, information technology/information engineering, contract, or casual duties.
Chief Minister Siddaramaiah stipulated that all private companies in the state must employ only Kannadigas for C and D-grade positions. Examples of lower-level positions within the Karnataka Public Service Commission (KPSC) that fall under the C and D grade categories include clerks, laboratory technicians, and chemists.
Comparable Measures in Other States
The Haryana State Employment of Local Candidates Act, 2020, which mandated a 75% quota for state domiciles in private sector positions with monthly salaries below INR 30,000, was invalidated in 2023 by the Punjab and Haryana High Court. The court ruled that the Act exceeded the State’s legislative authority as it impeded private companies’ freedom to recruit from the open market. Furthermore, it found that the Act violated the rights to equality and freedom guaranteed by Articles 14 and 19 of the Constitution.
The court argued that the 75% local reservation infringed upon the rights of individuals from neighboring states and could lead to similar restrictions nationwide, effectively creating “artificial walls” across India. These limitations unjustly restrict employees’ freedom of movement throughout the country.
