Decoded: What is Karnataka Employment Bill that seeks quota for locals

Karnataka Chief Minister Siddaramaiah on Tuesday announced that the government has approved a bill mandating reservation for Kannadigas in private companies, a move aimed at boosting job prospects for the local people.

Siddaramaiah said that the Bill was approved in the cabinet meeting held on Monday. It mandates private companies in Karnataka to reserve 100 per cent of ‘C’ and ‘D’ grade posts for local Kannadigas, effectively meaning the recruitment of only Kannada speaking people in these positions.

He deleted this post today amid backlash from industry leaders and stakeholders. Soon, the Karnataka Labor Minister Santosh S Lad clarified that the reservation for locals is capped at 70 per cent in non management roles and 50 per cent in management roles.

 

According to news agency PTI, the proposed bill mandates companies to reserve 50 per cent of management jobs and 70 per cent of non-management jobs for local residents.

The bill titled, ‘Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024', will be tabled in the Assembly on Thursday.

Who becomes eligible for local job reservation in Karnataka?

According to the Bill’s provision, the ‘local candidates’ need to possess a secondary school certificate with Kannada as a language to seek appointment to these posts. In case they do not have one, they must pass a Kannada proficiency test as specified by the ‘Nodal Agency’.

In case an establishment is unable to recruit any qualified applicant, the bill asks them to take steps to train the locals within three-year time with active collaboration of the government.

What happens if Karnataka companies can’t find suitable candidates?

In case the number of local candidates is insufficient, the companies may apply for relaxation from the provisions of the bill, it says.

It notes that the government’s decisions regarding this matter will be final. “...Provided that, the relaxation provided under this section shall not be less than 25 per cent for management category and 50 per cent for non-management categories,” the proposed Bill says.

The industry and factories are also required to inform the nodal agency about the compliance with the provisions of the proposed Bill. The nodal agency will then act to confirm the submitted reports.

What happens if Karnataka companies fail to comply?

The government has proposed a penalty between Rs 10,000 to Rs 25,000 in case of violations of the provisions of the Bill. “If the contravention continues after penalty has been imposed, then, with further penalty which may extend to one hundred rupees for each day till the time contravention continues,” the proposed Bill says.

How did Karnataka companies react to the Bill?

Following the announcement by Siddharamiah, various industrialists expressed their apprehension about the proposed Bill.

Company leaders believe the move is ‘discriminatory’ and will impact the tech industry. Mohandas Pai, chairman of Manipal Global Education Services, Kiran Mazumdar Shaw, R K Misra, co-chairman ASSOCHAM- Karnataka among others have criticised the Bill, calling to junk it.

On the industries’ concerns, state Commerce and Industries Minister MB Patil said on Wednesday that the government will conduct a wide range of consultations with all stakeholders and the confusion will be resolved.

In a post on social media platform ‘X’ (formerly Twitter), Patil said that the government will ensure that the interests of both – the Kannadigas and the industries are protected.

(With inputs from PTI)