‘The Jharkhand State Employment of Local Candidates Bill, 2021’ was recently passed by the state Assembly.

=> It provides 75% reservation for locals in private sector jobs with a monthly salary of up to ?40,000.

=> Once notified, Jharkhand will become the third State, after Andhra Pradesh and Haryana, to pass such a law.

How does the bill define private sector jobs?

The bill will treat shops, establishments, mines, enterprises, industries, companies, societies, trusts, Limited Liability Partnership firms and any person employing ten or more persons as the private sector and an entity. Moreover, the same may be notified by the government from time to time.

Highlights of the Bill:

=> Every employer needs to register employees on a designated portal who are receiving gross monthly salary or wages not more than Rs 40, 000 — or as notified by the government from time to time — within three months of this bill (after turning into an Act) coming into force.

=> No person should be engaged or employed unless the registration process is complete on the designated portal.

=> No local candidate will be eligible to avail 75 per cent benefit without registering herself in the designated portal.

=> The employer may claim exemption where an adequate number of local candidates of the desired skill qualification or proficiency are not available.

=> The employer will have to furnish a quarterly return about vacancies and employment on the portal which will be examined by an Authorised Officer (AO), who is a District Employment Officer, who can call any records for the purpose of verification.

=> The aggrieved employer may also file an appeal within 60 days of an order passed by the AO or DO in front of an Appellate Authority — the Director, Employment and Training, Government of Jharkhand.

Concerns and issues associated with this policy:

• Violates constitutional provisions- Article 16.
• Impacts ‘Unity in Diversity’: This policy can lead to a situation of locals vs non-locals in an area, thus posing a threat to the integration of the country.
• It might discourage capital investment in the region.
• Impacts freedom of a business.
• Against the spirit of competition.