Confused About Maharashtra's 80:20 Hiring Rule? Need Clarity on Employment Laws!

I need your urgent help regarding the information. I am working in an FMCG company in Maharashtra. Today, an Employment Exchange officer came for inspection. He mentioned that, as per the Maharashtra government ruling, there is a rule of 80:20, i.e., 80% Maharashtra and 20% outsiders for hiring in any company, which I am not aware of. He also said that the Personnel/HR Manager should be from Maharashtra and able to speak Marathi.

Request for Clarification on Employment Laws

Seniors, I am not aware of these laws and need your help. Is there any such law? Please help.

Also, please help me with the link where I can thoroughly go through the Employment Exchange Act.

Thanks & Regards,

To my knowledge, there is no law in Maharashtra that mandates engaging 80% local persons in employment. There is also no law stating that the Personnel/HR Manager must be from Maharashtra and able to speak Marathi. However:

i. In the industrial policy GR for the Package Scheme of Incentives - 2013, there is a requirement for 80% local persons. This is applicable only if you are availing a package of incentives from the Government of Maharashtra in developing regions.

ii. The appointment of a Welfare Officer under the Factories Act requires knowledge of the Marathi language.

iii. The Employment Exchanges (Compulsory Notification of Vacancies) Act is applicable to you, and you need to comply with its provisions. Under this Act, there is no compulsion to fill vacancies through the Employment Exchange, but it is compulsory to inform the Employment Exchange of the vacancies and file quarterly and bi-annual returns.

The HR Fraternity can correct me if I am wrong.

Thank you for the prompt response. Can I have any references (book/link) for the Employment Exchange Act as there is one more meeting with this inspector in the coming week, so I want to be prepared for that? Sometimes people take advantage of their powers and position due to our lack of knowledge. Thank you again! :)

Regards,
Shivani

You can get a Bare Act Book - Employment Exchanges (Compulsory Notification of Vacancies) Act at book stalls where law books are available. If you are from Mumbai, you can approach the Labour Law Agency at Tardeo AC Market, or at the Labour/Industrial Court in Bandra, or at the Labour Commissioner's Office in BKC. You can also find this book at Bapuji Book Depot in Parel.