Haryana will be harmed by the decision of reservation in jobs for local, companies may leave Gurgaon

Reservation for Local in Jobs: Cities like Noida-Delhi can benefit from the government’s decision to give reservation in jobs to the local people of Haryana. Because due to this decision of Haryana Government, many IT sector (IT/ITeS) and startups are planning to leave Haryana and shift their offices to other nearby states. Under the new Labor Act of Haryana, companies will have to give 75 percent reservation to local people in employment. This provision is going to come into force from 15 January 2022.

Rule applicable for 10 years

The Haryana Government had passed the Haryana State Employment of Local Candidates Bill on 2 March 2021. Under this bill, 75 percent of the people of Haryana will have to be given reservation in private sector jobs with a monthly salary of less than Rs 50,000. This rule will be applicable to companies with more than 10 employees and will be considered applicable to new appointments. This will help in curbing the problem of unemployment in the state. This law is currently being implemented for 10 years.

Pay Band Reduced

However, following criticism from the corporate sector, the Haryana government has reduced the pay band from Rs 50,000 to Rs 30,000. The new rule has been notified on 6 November. Which will give some relief to IT companies. It is also believed that a two-year moratorium can be found for startups to implement this rule. According to NASSCOM, there are more than 500 IT/ITeS companies in Gurgaon alone, where more than 4 lakh people are employed. According to this report, if the new law of the Haryana government comes into force, then the employment of 1.5 lakh people may be affected.

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