Bengaluru: The Karnataka government has temporarily halted the implementation of a bill that mandates reservation for locals in the private sector. The decision follows significant backlash from Nasscom and leading industrialists, who argued that such mandates are unconstitutional and overly restrictive for private enterprises.
The Siddaramaiah-led Congress government initially proposed that 50 percent of managerial positions and 70 percent of non-managerial roles in private sectors be reserved for locals. This proposal faced strong opposition, notably from successful entrepreneur Mohandas Pai, who criticized the bill for potentially undermining Bengaluru’s cosmopolitan character and questioned the availability of local talent to fill such large quotas.
Earlier, the Karnataka cabinet had approved a bill ensuring 100 percent reservation for Kannadigas in private sector Group C and D posts. “The Cabinet meeting held yesterday approved a bill to make recruitment of 100 percent Kannadigas mandatory for ‘C and D’ grade posts in all private industries in the state,” Chief Minister Siddaramaiah announced on X. He emphasized the government’s pro-Kannada stance and its focus on the welfare of Kannadigas.
The proposed ‘Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024’ was scheduled to be tabled in the Assembly on Thursday. The bill stipulates that 50 percent of management roles and 70 percent of non-management roles must be filled by local candidates. Candidates without a secondary school certificate with Kannada as a language must pass a Kannada proficiency test.
In cases where qualified local candidates are unavailable, establishments are required to collaborate with the government to train local candidates within three years. Establishments may apply for relaxation from these provisions if sufficient local candidates are not available. However, the relaxation cannot reduce the local candidate quota below 25 percent for management and 50 percent for non-management categories.
Industries and establishments must report compliance to a nodal agency, which will verify and submit reports to the government. The nodal agency has the authority to request documents and information from employers to ensure compliance. An officer, not below the rank of Assistant Labour Commissioner, will be appointed to oversee compliance.
Non-compliance with the Act could result in penalties ranging from Rs 10,000 to Rs 25,000. Continued contravention may incur an additional penalty of Rs 100 per day until compliance is achieved.
