SYNOPSIS: HARYANA STATE EMPLOYMENT OF LOCAL CANDIDATES ACT

INTRODUCTION

The Haryana State Employment of Local Candidates Act, 2020 was passed by the legislature on November 06, 2021, and it stands effective from January 15, 2022. The Act and the Rules will remain effective for 10 years from their effective date.

This Act aims to encourage employment opportunities for local candidates in the state of Haryana for the private sector and on securing employment opportunities for domiciled individuals.

The Act requires private sector employers to reserve 75% of job posts for candidates who are domiciled in the state of Haryana. The Government of Haryana has also made the residency requirement as 5 years for a person to obtain a residency certificate in Haryana. Apart from the state of Haryana, other states i.e. Andhra Pradesh, Karnataka, Rajasthan, Maharashtra, Telangana, have recently implemented reservations for the local candidate’s employment in the public as well as the private sector.

APPLICABILITY

The Act applies to the following Persons, namely:

• All private Companies,
• Societies,
• Trusts,
• Limited Liability Partnership Firms,
• Partnership Firm or
• Any Person employing ten or more persons or
• An Entity, or Any Person employing ten or more persons receiving a salary, wages, or other remuneration of not less than INR 30000 for Manufacturing or providing any Service or
• Any other entity which may be notified by the Government.

Every employer will have to recruit 75% of local candidates from only within the State of Haryana wherein the salary or wages payable to the employees shall be a minimum of INR 30,000. However, an employer can also opt to restrict the recruitment of local candidates from a particular district to 10% of the total local candidates. Local candidates can not avail of benefits if they are not registered on the designated portal either by themselves or by the employer.

The Act requires private sector employers to reserve 75% of job posts for candidates who are domiciled in the state of Haryana. The Government of Haryana has also made the residency requirement as 5 years for a person to obtain a residency certificate in Haryana.

IMPORTANT DEFINITIONS

1. Designated Officer is defined under the act as an officer of Government who is not below the rank or equivalence of the Deputy Commissioner as may be designated by the Government to grant exemption to employers
2. Designated portal is defined under the Act as the portal specifically designed and designated for the registration of local candidates and employees where the employer and the local candidate have to register themselves. The Designated portal has been notified by the state government. The link for the designated portal is https://local.hrylabour.gov.in/
3. Employer is defined under the Act who may be a Company registered under the Companies Act, 2013, or a Limited Liability Partnership Firm as defined under the Limited Liability Partnership Act, 2008 or any person employing ten or more persons on salary, wages, or other remuneration for manufacturing or providing any service or such entity, as may be notified by the Government from time to time, but it shall not include an entity or any organization owned by the Central Government or the State Government
4. Local Candidate is defined under the Act as a candidate who is domiciled in the State of Haryana.
5. Domiciled Person is defined under the Rules as a bonafide local resident of Haryana as the conditions may be specified by the State Government and who shall be having Parivar Pehchan Patra (PPP) that is issued under the Haryana Parivar Pehchan Act, 2021 for this Act.
   
   A resident under Haryana Parivar Pehchan Act, 2021 is an individual or a family who is residing in the territorial limits of the State of Haryana and includes an employee of the State Government, Government agency, or local authority who resides outside the State of Haryana or who has been deputed by the State Government, Government agency or local authority outside the State of Haryana.
   
   Parivar Pechan Patra is issued to any family who is currently residing in Haryana. Such a family shall be issued a permanent 8-digit family ID through the designated portal: https://meraparivar.haryana.gov.in/
6. Haryana Udhyam Memorandum Identification Number (HUM – ID) is defined under the Rules as a Unique Identification Number (UIN) which will be issued withstanding the effect of all types of enterprises, industries, units, and businesses that are being run in the State at Haryana on Udhyam Memorandum Portal
7. Employee is defined under the rules as any person employed by the employer on payment of salary or wages or any other remuneration and it does not include an apprentice engaged under the Apprentices Act, 1961.

KEY HIGHLIGHTS

RESERVATION QUOTA

• The Act specifies minimum reservation quota as 75% reservation for local candidates in private industry with a monthly gross salary or wages of up to INR 30,000.

REGISTRATION OF EMPLOYER AND EMPLOYEES

• Every employer and his employees receiving a gross monthly salary or wages of less than INR 30,000 are required a mandatory registration on the designated portal.
• The Registration shall be taken within 3 months of the enforcement of the Act i.e. 15th January 2022.
• Earlier the ceiling limit of employee salary was INR 50,000.
• Every Employer shall generate a Unique Identification Number to be issued on resistance to all types of enterprises and businesses operating in the State at Haryana Udhyam Memorandum Portal.
• The link for Haryana Udhyam Memorandum Portal is: http://harudhyam.edisha.gov.in/ Every Local Candidate who seeks employment may also register themselves on the designated portal.

EXEMPTIONS

• In Case an adequate number of local candidates of the desired skill, qualification, or proficiency is not available, an employer may claim exemption from the provisions of the Act.
• Employer shall file an application to the Designated Officer in Form-I to claim the exemption under Section 5.
• The employer shall mention specific reasonable grounds in the application such as qualification, skill, and experience for the post and availability of the Local Candidates.
• The Designated Officer may after an inquiry either accept or reject the employer’s application by passing an order for granting exemption or to direct the employer to give training to the local candidates to achieve the desired skill, qualification, or proficiency.
• The exemption granted shall be valid for only one year from the date of grant of the exemption.
• To ensure smooth implementation of the Haryana State Employment of Local candidates Act, Haryana Government granted deemed exemption to the following, namely:
  • Vacancies in the NEW Startups and IT /ITES(IT Enables Services) of Employers, the exemption has been granted for a period of two years from the date of commencement of work or business or manufacturing process
  • Short Term Employment of less than forty-five days
  • Vacancies under any employer engaged in Agricultural Activities
  • Vacancies under an employer for Domestic work or Services
  • Vacancies which are being filled up through promotion or transfer or by absorption of surplus staff of any unit of the same employer in the state
  • Any class, post, skill, and category of employment as may be notified by the state government where the candidate of the desired skill, qualification, or proficiency required in such employment is not available.

ANNEXURE for FORM – I

QUARTERLY REPORT

• Every employer is required to furnish a quarterly report of the local candidates employed and appointed during that quarter on the designated portal by the 20th of the following quarter in Form III.
• The Due Dates will be 20th July, 20th October, 20th January, 20th April every year.
• Form III specifies information as follow, namely:
  • Name and Address of Employer
  • Type of the Establishment (Company, Society, Limited Liability Partnership Firm, Partnership Firm or other establishments)
  • Nature of business and Principal activity of the establishment
  • Establishment Registration No. on designated portal
  • Under Present employment- details of the total number of persons on the payroll of the establishment who draw monthly salary/wages for previous as well as current quarter
  • Details of vacancies during the quarter and the number of vacancies filled during the quarter
  • Manpower Shortages, if any.

ANNEXURE for FORM-III

MAINTENANCE OF RECORDS

Employer will have to maintain records and make them available for inspection and verification by the Designated Officers / Authorized Officers in digital form, as under:

• The number of employees (regular, temporary, contractual, casual, and fixed-term employees) on the last date of every quarter.
• Occupational/ post-wise details of employees on the last date of every quarter
• Number of Local Candidates recruited/appointed during every quarter
• Record of an exemption obtained during the quarter due to the non-availability of suitable candidates.
• Record of training imparted or camp for skill development organized for Local Candidates.
• Any other relevant record.

OFFENSES AND PENALTIES:

• Failure to register on the designated Portal attracts a penalty of INR 25,000 to INR 1,00,0000, and a penalty of INR 500 per day in case of a subsequent offense.
• Failure to recruit local candidates can attract a penalty of INR 50,000 to INR 2,00,000, and a further penalty of INR 1000 per day in case of a subsequent offense.
• General penalty for contravention of any of the provisions, fine will be imposed not less than INR 10,000 to INR 50,000, and a further penalty of INR 100 per day on a subsequent offense.

Disclaimer

The information provided in this article is intended for general informational purposes only and should not be construed as legal advice. The content of this article is not intended to create and receipt of it does not constitute any relationship. Readers should not act upon this information without seeking professional legal counsel.