The Karnataka cabinet is proposing a bill to provide reservation for locals under the Kannadiga quota in private sector jobs, including “industries, factories, and other establishments” in the state.
The bill, titled the Karnataka State Government Employment of Local Candidates in Industries Bill, 2024, mandates 50 percent reservation for locals in managerial positions and 75 percent in non-managerial posts.
If there are not enough eligible candidates, the proposed law requires the concerned industry, in collaboration with the state, to train local candidates within three years and employ them.
The bill also provides for the appointment of a nodal agency by the state to implement the provisions of the law.
Karnataka Chief Minister Siddaramaiah tweeted that the bill is still in the preparation stage and will undergo a comprehensive discussion at the next cabinet meeting before a final decision is made.
“The draft bill intended to provide reservations for Kannadigas in private sector companies, industries, and enterprises is still in the preparation stage. A comprehensive discussion will be held in the next cabinet meeting to make a final decision,” the tweet stated.
Objective of the Proposed Law
The Congress government in Karnataka, led by Chief Minister Siddaramaiah, has stated that the bill is essential to provide adequate employment opportunities to locals. It is expedient to provide employment to locals in factories, industries, and other sectors.
Who is a ‘Local’?
The bill defines a local candidate as a person born in Karnataka and domiciled in the state for 15 years. Additionally, the person should be able to speak, read, and write Kannada legibly. Candidates should have a secondary school certificate with Kannada as a language. If not, they must pass a Kannada proficiency test as specified by the nodal agency.
Penalties for Breach of the Proposed Law
The bill prescribes monetary penalties ranging from ₹10,000 to ₹1 lakh for isolated or repeated breaches of its provisions. It provides a limitation period of six months for prosecution.
Other States with Similar Laws and Their Current Status
Andhra Pradesh: In 2019, the Andhra Pradesh State Assembly passed the Andhra Pradesh Employment of Local Candidates in the Industries/Factories Act to reserve 75% of jobs for local candidates. This was challenged in court, and in 2020, the Andhra Pradesh High Court observed that the 75% quota might be unconstitutional. The legislation is yet to be fully implemented.
Haryana: In 2020, Haryana enacted the Haryana State Employment of Local Candidates Act, mandating 75% reservation in private sector jobs for locals. The Act was challenged in court, and in 2022, the Punjab and Haryana High Court quashed it, terming it ultra vires of Part III of the Constitution and in breach of Articles 14 and 19 of the Constitution.
Jharkhand: In 2022, the Jharkhand government passed the Jharkhand Reservation of Vacancies in Posts and Services (Amendment) Bill, proposing to raise reservation in state government jobs from 60% to 77% for people belonging to the SC/ST/OBC/EWS categories. A year later, the bill was returned by the Governor for review. The state passed the bill again in 2023 without any revisions, but it is yet to send it to the Governor for assent.
