The Karnataka government has approved legislation The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024 that made it mandatory for all private industries to hire only Kannadigas in Group C and Group D categories.
The Bill mandates industries, factories and other establishments to appoint 50% of local candidates in management categories and 75% in non-management categories.
According to the provisions, violation of The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, would attract a penalty of up to Rs 25,000.
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Who is a Local Candidate?
‘Local Candidates‘ means a candidate who is born in the State of Karnataka
and who is domiciled in the State for a period of fifteen years and who is capable of speaking, reading and writing Kannada in a legible w&9 and has passed a requisite test conducted by the Nodal Agency;
Management Category
‘Management Category’ means any person holding the positions of supervisory, managerial, technical, operational, administrative and higher positions in any factory, industry, company, establishment excluding its directors;
‘Nodal Agency’ means the agency notified by the Government;
Non-Management Category
‘Non-Management Category’ means any persons working in a factory, industry, company, establishment in the position of clerical, unskilled, semi-skilled, skilled, employees involved in IT/ITES and includes contract and casual works
Suppose a sufficient number of local candidates are not available. In that case, an Industry or Factory, or other Establishments may apply for relaxation from the provisions of this Act to the Government. After due enquiry the Government may pass appropriate orders and such orders passed by the Government shall be final:
Provided that, the relaxation provided under this section shall not be less than twenty five percent for management category and fifty percent for the non-management categories.
Fines/Penalty
Any Employer or Occupier or Manager of an Establishment, who contravenes the provisions of this Act shall be liable for a penalty which shall not be less than ten thousand rupees, but which may extend upto twenty five thousand rupees , and 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 so continues.
On Wednesday several industry leaders in the state objected to the move saying that it is “discriminatory” and raised apprehensions that the tech industry may suffer.