The Karnataka State has approved for the new bill called “The Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024” which mandates the private organisations in the state to hire local candidates proficient in Kannada.
What is The Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024
The Karnataka State Employment of Local Candidates in the Industries, Factories, and Other Establishments Bill, 2024, is a bill that mandates
– 50% of management positions be held by locals
– 75% of non-management positions be held by locals
– private firms should recruit locals in Group C, D category posts.
– Defines a local candidate as someone born in, domiciled for 15 years, and proficient in Kannada
– Requires industries to train local candidates if qualified ones are not available
– Allows companies to apply for relaxation if local candidates are insufficient
– Imposes penalties for non-compliance, ranging from Rs 10,000 to Rs 25,000
Though the bill was approved by the Karnataka state assembly, The bill has been met with huge criticism from the industry leaders, who called it as discriminatory and unconstitutional.
The chief minister Siddaramaiah had also tweeted on X that Group C, D category posts in the state to be fulfilled by only kannadigas stating the government approved for 100% reservation to the locals. Amidst big criticism and backlash CM removed the post from X.
Many industrialists, delegates from IT companies have expressed their concern on this decision stating this bill could lead many companies to shift their base to other states. Former CFO of Infosys Mohandas Pai called the bill ‘fascist.’
NASSCOM expressed “serious concern” about the provisions of this bill and urged the state government to withdraw it. “The bill’s provisions threaten to reverse this progress, drive away companies, and stifle startups, especially when more global firms (GCCs) are looking to invest in the state. At the same time, the restrictions could force companies to relocate as local skilled talent becomes scarce.”
Many expressed that this decision to provide reservation to kannadigas could Violate Right to equality under Articles 14, 15, and 16 and Right to freedom to practice any profession or to carry on any occupation, trade, or business (Article 19(1) (g)).
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