Karnataka govt clears draft bill for local quota in pvt jobs

The draft bill sets aside 50% of managerial roles and 75% of non-managerial roles for local candidates in industries, factories and other commercial establishments

Bengaluru: The Karnataka cabinet on Tuesday approved a draft legislation setting aside 50% of managerial roles and 75% of non-managerial roles for local candidates in industries, factories and other commercial establishments, becoming the latest state to administer controversial domicile quotas.

Karnataka chief minister Siddaramaiah (right) and deputy chief minister DK Shivakumar (left). (File Photo)

The chief minister in a tweet also said that the Cabinet approved a bill to make it mandatory to hire Kannadigas for all “C and D” grade jobs in all private industries in the state.

The Karnataka State Employment of Local Candidates in the Industries, Factories, and Other Establishments Bill, 2024, is likely to be tabled during the current legislative session for approval. The ruling Congress has a comprehensive majority in the Lower House but in the Upper House, the joint Opposition of JD(S) and BJP holds the advantage.

If implemented, the law will have a serious impact on the sprawling information technology industry in Bengaluru, which has an economy of $245 billion and is home to over 1.5 million employees.

The law is also expected to face legal challenges. A similar rule in Haryana was struck down by the Punjab & Haryana high court last year as unconstitutional, with the judges holding that notions about individual rights need to be in accordance with the text and spirit of the Constitution and not popular or majoritarian notions.

The bill’s objective is to prioritise local employment, Karnataka labour minister Santosh Lad said, noting that many private firms receive government benefits. “We want to ensure that more jobs are available for local Kannadigas,” he said.

The cabinet meeting on Tuesday was chaired by chief minister Siddaramaiah. As per the bill, a local candidate is defined as a person “who is born in the state of Karnataka and who is domiciled in the state for a period of 15 years and who is capable of speaking, reading and writing Kannada in a legible way and has passed a required test conducted by the nodal agency”.

In cases where suitable local candidates are unavailable, the bill stipulates that industries must work with the government to train local candidates within three years.

“If a sufficient number of local candidates are not available, then an industry or factory or other establishments may apply for relaxation from the provisions of this act to the government, and after due enquiry, the government may pass appropriate orders and such orders passed by the government shall be final,” the draft legislation said. HT has seen a copy of the legislation.

Management positions include supervisory, managerial, technical, operational and administrative roles, excluding directors, while non-management positions encompass clerical, unskilled, semi-skilled, skilled, IT/ITES employees and contract or casual workers, said the draft bill.

Failure to adhere to the bill’s requirements can result in penalties ranging from ₹10,000 to ₹25,000. The bill assigns a nodal agency to oversee compliance, including verifying employer reports and requesting additional documentation if needed. An authorised officer may also be appointed to enforce the bill’s provisions.

An office-bearer of the Federation of Karnataka Chambers of Commerce and Industry said they were yet to review the draft bill. However, they were committed to providing jobs to local candidates, the person said.