Karnataka Cabinet Approves Draft Bill Reserving 50% Of Management & 75% Of Non-Management Jobs For Locals

The Karnataka cabinet has approved the draft State Employment of Local Candidates in the Industries, Factories, and Other Establishments Bill, 2024. This new legislation mandates that 50 percent of management jobs and 75 percent of non-management roles be reserved for local candidates.

Under the draft bill, local candidates who do not have a secondary school certificate in Kannada must pass a specified Kannada proficiency test. In instances where qualified local candidates are not available, industries, factories, and establishments are required to work with government agencies to train and hire local talent within three years.

Draft bill to be tabled during ongoing Assembly session

As per reports, the draft bill would be tabled during the ongoing Assembly session.

The draft bill outlines penalties for non-compliance. Employers, occupiers, or managers who fail to adhere to the provisions could face fines ranging from Rs 10,000 to Rs 25,000. Repeated violations could incur additional penalties of Rs 100 per day until compliance is achieved.

Definition of a local candidate as per the bill:

The bill defines a 'local candidate' as an individual who is born in Karnataka, has been domiciled in the state for 15 years, is fluent in Kannada, and passes a required test administered by the nodal agency. The 'management category' includes supervisory, managerial, technical, operational, administrative, and higher roles, excluding directors. The 'non-management category' covers clerical, unskilled, semi-skilled, skilled, IT/ITES employees, and contract or casual workers in various establishments.

The bill also allows for industries or establishments to apply for relaxations from the mandated quotas under certain conditions, subject to government approval. Any relaxation granted shall not reduce the quotas by more than 25 percent for management positions and 50 percent for non-management roles.

A nodal agency will oversee compliance with the bill's provisions, verifying reports submitted by employers and requesting additional information or documents as necessary. Additionally, the government may appoint an authorised officer to ensure adherence to the Act.