How will Haryana’s 75% Job Quota Impact SMEs?

The new bill passed by the Haryana Assembly to reserve 75% of all private sectors jobs for the local is a threat for both existing industries and industries who want to expand as employable candidates in Gurgaon are nearly absent. This unambiguous consensus among the companies would tend Haryana to lose its attractiveness for the industries.

Years back in 2005 Solo Group, a Gurgaon based SME partnered with Maruti Suzuki to train graduates from nearby areas and make them eligible for the jobs. The firm soon realized that the majority of the pool of talented potential were not interested as soon as the firm had put its best foot forward. Rather than working in factories or companies, they were interested in working in malls or Call Center. This case is the same even now. According to Mr. Sandeep Jain the MD of Solo Groups the skill availability is a huge problem in Haryana. This bill would cause a disastrous situation for the industries to survive.

Another threat that is being felt is that by hiring 75% of the locals, that is they would be in the majority and if they at any point of time get united for getting their demand fulfilled. Whether fair or unfair could lead to adverse situations even like the closure of the company.

The effect of the outcome would not only be seen only on the industries in the Haryana region but also on the companies in adjoining regions that are states like Delhi, Uttar Pradesh, Rajasthan etc as it is a likely outcome that the industries of the Haryana region may shift to adjoining states. This would make the people stringent and the hiring cost of non-Haryana people would thereby increase.

Millions of people can become unemployed in the country if the companies rather than being labor-intensive opt for capital intensive processes to cut down the labor cost and to avoid such hindrances. This could result in a disastrous outcome for the country and would also take away the competitive advantage of the country.

Earlier vacancies of the firm were put outside the units on board. The eligible candidates could walk in and could apply for the same. From the pool of candidates, the organization could choose the most suitable one. But now as per the notification, it would become mandatory for all the industries to register the vacancies in the Haryana government’s job portal. If the organization is not able to get the right candidate with suitable skills, knowledge and education they have to apply for permission for exemption from the district magistrate. After the company has applied for exemption a designated officer would evaluate the number of times attempts the organization has made to hire local candidates. After which he can reject or accept the claim made by the employer. He could even order the firm to train the local candidates rather than hiring from other states. This would be a very complicated and time-consuming process.

This decision of the Haryana’s government would also increase corruption as for hiring Non-Haryana people the officer may even harass the entrepreneurs and may ask for a bribe. Small firms would be severely impacted by this as they do not have adequate finance so how can they fulfill the demands of the officers.

The process would become very complicated and a lot more registration, permission and explanation will be added to several layers of compliance for the firms. The companies do not capture the domicile state of the candidates. Now, the candidate’s domicile state has to be verified.

The whole country would have to face the impact as artificial boundaries would be created between the states and the labor market. The political parties of Haryana are putting the whole country’s future at stake to get the vote bank of the locals.

This bill is against our fundamental rights. As per the fundamental rights no person can be restricted to practice any trade or profession in any part of the country. This bill would be like a big rock restricting the movement of talent in the country. If the other states also start following such measures, imagine how pathetic would be the condition of India? More than 120 million people are left unemployed after the coronavirus impact and if this employment reservation bill of Haryana would become a law this figure would surely rise. This bill will spill disaster for the development of industries and the growth of the country also.


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