Extension of reservation for local people in private sector

Unemployment has become a major political and social issue in the country. To reduce this, state governments are implementing reservation for local residents in private sector jobs. Many states like Karnataka, Haryana, Andhra Pradesh and Jharkhand have adopted the policy of giving priority in employment to local people.

Karnataka: 75% reservation in private sector

The Karnataka government has approved the ‘Karnataka State Employment of Local Candidates in Industries, Factories and Other Establishments Bill, 2024’. Under this law:

• 75% reservation in non-management jobs made mandatory.
• 50% reservation will also be applicable in management jobs.

The aim of this initiative is to provide more employment opportunities to the youth of the state.

Andhra Pradesh: 75% reservation in private jobs

YS Jagan Mohan Reddy’s government had passed the ‘Andhra Pradesh Employment of Local Candidates in Industries and Factories Act’ in 2019.

• 75% of jobs in private companies, public-private partnerships and joint ventures were reserved for locals.
• However, the law was challenged in the Andhra Pradesh High Court, which likely ruled it unconstitutional.

Madhya Pradesh: 70% reservation announced

Madhya Pradesh government had proposed to reserve 70% of the jobs for local people. Although:

• This provision does not apply to all private companies.
• Government jobs in the state are already being reserved for local residents.

The move was announced by former state chief minister Shivraj Singh Chouhan in August 2020.

Haryana: 75% reservation in jobs up to Rs 30,000

Haryana government implemented the law of 75% reservation in private jobs in 2021.

• This law applies to jobs with a monthly salary of less than Rs 30,000.
• All companies, societies, trusts and partnership firms were required to follow this law.
• However, in November 2023, the court declared this quota invalid. After this the Haryana government filed a petition in the Supreme Court.

Jharkhand: Supreme Court ban on 75% reservation

Jharkhand government had made a provision of 75% reservation in private jobs in 2021.

• This law was applicable to jobs with monthly salary up to Rs 40,000.
• Recently the Supreme Court has banned this law.

This step of the Jharkhand Assembly was an attempt to ensure employment for the youth of the state.