How Will the New Haryana Local Employment Rules Affect Your Hiring Practices?

Dear Members,

Please find attached herewith a copy of the Haryana State Employment of Local Candidates Rules, 2021, which appeared in the Haryana Govt. Gazette dated 10.01.2022. Kindly note that these Rules shall come into force with effect from the date of the HSELC Act, 2020 coming into force. As already notified by the Haryana Govt., this Act will come into force from 15.01.2022.

R.N. KHOLA

Dear Members, please be informed that the Haryana Government has notified the website of the designated portal. A copy of the notification is attached herewith for your ready reference. This portal has been designed and designated for the purposes of registering local candidates and employees under sections 3 and 4.

Regards, R.N. KHOLA

Impact of Haryana's New Employment Law

I think Haryana is going to face significant challenges, both business-wise and industry-wise. Most Faridabad offices might move back to Delhi or Gurugram, I suspect. Unfortunately, this could lead to more such laws being passed by vote-seeking politicians in other states.

It's surprising that the courts upheld this law.

Dear Members,

The Writ Petition filed by FIA in the Hon'ble High Court of Punjab and Haryana, seeking a stay on the implementation of the 75% reservation of all jobs up to Rs. 30,000 per month salary for Haryana domicile residents in all private businesses in the state employing 10 or more, was scheduled to come up for hearing today, i.e., 12.01.2022. However, in view of the surge in COVID-19 cases, on 10.01.2022, the Chief Justice passed an order specifying a new procedure for taking up cases. As per this procedure, all cases already fixed for the next week have been adjourned to predetermined dates en bloc. FIA's matter is scheduled to come up on 02.02.2022.

However, in case of urgency, parties are required to move an application for preponement of cases through online mentioning, which has been done by FIA's lawyer yesterday morning by filing a mentioning request as required, and the same was allowed. As the necessary next step, FIA has also filed an application for preponement (diary no. 6284833), which most likely will come up for hearing on 14/15.01.2022. FIA has also prayed for interim relief in this application and will be pushing for a stay on the operation of the Act at the time of hearing.

We will keep you informed about the developments in this matter. To our knowledge, there are five such writ petitions filed by Industrial Associations in the Punjab & Haryana High Court.

FAQ on Haryana State Employment of Local Candidates Act, 2020

What is Haryana State Employment of Local Candidates Act 2020

The Haryana State Legislative Assembly has passed the Haryana State Employment of Local Candidates Act, 2020, to provide 75% employment to local candidates in new employment in various companies, societies, trusts, and limited liability partnership firms situated in the state of Haryana. This provision will be for local candidates for all jobs with a monthly gross salary or wages not more than Rs 30,000/-.

Does it mean 75% of the total workforce of an employer will be from Haryana only

No. Every employer shall be required to employ 75 percent local candidates in new employment after the commencement of this Act, for the posts where the gross monthly salary or wages are not more than Rs. 30,000 or as notified by the government from time to time. The legislature is not intended to achieve a situation where 75% of the entire workforce will be from local candidates. The Act applies to new recruitment only, i.e., not with retrospective effect.

To whom the Act applies

The Act applies to all the 'Employers' of the State of Haryana, which are as under:
1. All companies, partnership firms, societies, trusts, limited liability partnership firms,
2. Any person/employer employing 10 or more employees in any trade/business/manufacturing/enterprises.

What the Act provides for employment of local candidates

All employers in the private sector in the State of Haryana are required to provide 75% employment of new jobs to the local candidates (candidates who have a domicile in the State) for the job, where salary/wages are not more than Rs. 30,000/-.

Whether the registration of the existing employees is compulsory

Yes, all the employers are required to register their existing employees on the designated portal within a period of three months commencing from 15.01.2022. An employer can initiate any new recruitment process after completing the online registration of existing employees.

What is the procedure for registration of employees, whose registration is compulsory

For this purpose, the designated portal may be visited, which is specially designed for this purpose, and fill the form/provide the information available there.

Is it compulsory for the local candidates also to register themselves on the portal

Yes, if any local candidate wants to be considered for employment under this Act, such candidate has to register on the portal as a Local Candidate.

Whose registration is compulsory

The existing employees who are receiving salary/wages not more than Rs. 30,000/- irrespective of their state of domicile, are required to be registered online within a period of three months w.e.f. 15.01.2022.

What are the grounds for seeking exemption

Employers may claim an exemption from providing 75% employment in new jobs to locals if an adequate number of local candidates with the desired skill, qualification, or proficiency are not available for the said category of jobs.

How the government will check if the employer is abiding by the 75% employment to local mandate Act

Every employer will have to furnish a quarterly report on the designated portal and mention details about local candidates employed and appointed during that period. The reports furnished by the employer will be scrutinized by the authorized officers not below the rank of Sub-Divisional Officers. These officers shall have the powers to call for any record, information, or document in possession of any employer for the purposes of verifying the report furnished by them. The officer will also have the right to enter the employer’s work premises to examine any record, register, or document if the officer has a reason to believe that the employer has committed an offense under this Act or the rules made thereunder.

Urgent Notice: Haryana State Employment of Local Candidates Act 2020

It is intimated to you that the designated portal, i.e., local.hrylabour.gov.in, under the Haryana State Employment of Local Candidates Act 2020, is going live from midnight, 12:00 a.m., on 15/1/2022. All are requested to inform all employers and motivate them to start the registration of all employees receiving a gross monthly salary of less than 30,000 on the designated portal. The link, Act, and Rules are also available on the portal.

This Act is applicable to all employers who have 10 or more employees in their shop, factory, establishment, trust, societies, etc. Your personal intervention is required utmost in this drive. In case of any query, contact the IT team of the Labour Department or via [Email Removed For Privacy Reasons].

Hoping for a positive response and immediate intervention, please...

Regards,
Paramjit Singh Dhull
Dy. Labour Commissioner, Haryana

FAQ on Haryana State Employment of Local Candidates Act, 2020

What is Haryana State Employment of Local Candidates Act 2020

The Haryana State Legislative Assembly has passed the Haryana State Employment of Local Candidates Act, 2020, to provide 75% employment to local candidates in new employment in various companies, societies, trusts, and limited liability partnership firms situated in the state of Haryana. This provision will be for local candidates for all jobs with a monthly gross salary or wages not more than Rs 30,000/-.

Does it mean 75% of the total workforce of an employer will be from Haryana only

No. Every employer shall be required to employ 75% local candidates in new employment after the commencement of this Act, for the posts where the gross monthly salary or wages are not more than Rs. 30,000 or as notified by the government from time to time. The legislature is not intended to achieve a situation where 75% of the entire workforce will be from local candidates. The Act applies to new recruitment only, i.e., not with retrospective effect.

To whom the Act applies

The Act applies to all the 'Employers' of the State of Haryana, which are as under:
1. All companies, partnership firms, societies, trusts, limited liability partnership firms,
2. Any person/employer employing 10 or more employees in any trade/business/manufacturing/enterprises.

What the Act provides for employment of local candidates

All employers in the private sector in the State of Haryana are required to provide 75% employment of new jobs to the local candidates (candidates who have a domicile in the State) for the job, where salary/wages are not more than Rs. 30,000/-.

Whether the registration of the existing employees is compulsory

Yes, all the employers are required to register their existing employees on the designated portal within a period of three months commencing from 15.01.2022. An employer can initiate any new recruitment process after completing the online registration of existing employees.

What is the procedure for registration of employees, whose registration is compulsory

For this purpose, the designated portal may be visited, which is specially designed for this purpose, and fill the form/provide the information available there.

Is it compulsory for the local candidates also to register themselves on the portal

Yes, if any local candidate wants to be considered for employment under this Act, such candidate has to register on the portal as a Local Candidate.

Whose registration is compulsory

The existing employees who are receiving salary/wages not more than Rs. 30,000/- irrespective of their state of domicile, are required to be registered online within a period of three months w.e.f. 15.01.2022.

What are the grounds for seeking exemption

Employers may claim an exemption from providing 75% employment in new jobs to locals if an adequate number of local candidates of desired skill, qualification, or proficiency are not available for the said category of jobs.

How the government will check if the employer is abiding by the 75% employment to local mandate Act

Every employer will have to furnish a quarterly report on the designated portal and mention details about local candidates employed and appointed during that period. The reports furnished by the employer will be scrutinized by the authorized officers not below the rank of Sub-Divisional Officers. These officers shall have the powers to call for any record, information, or document in possession of any employer for the purposes of verifying the report furnished by them. The officer will also have the right to enter the employer’s work premises to examine any record, register, or document if the officer has reason to believe that the employer has committed an offense under this Act or the rules made thereunder.

Dear Respected Seniors,

Questions about Freelancing and Hiring Process

Can anyone answer these:

Are the consultants or people hired on the freelancing model also covered under this?

Hiring Process for the Remaining 75%

How does the process work for the remaining 75%? Are we allowed to hire 25% on our own, or are we required to seek permission from the Labor office for that?

Hiring from Naukri and Haryana Job Portal

Are organizations allowed to hire from Naukri provided the candidates are registered on the Haryana Job Portal?

Definition of Employment

Please see the definition of employment to determine if consultants and freelancers are covered. Most probably, they are not covered based on the work they perform rather than their designation.

Recruitment Guidelines

You can recruit through a portal, but the candidate must be a resident of Haryana (meaning they have lived there for 15 years).

For the remaining 25%, you have the freedom to hire anyone you prefer.

Exemption on Haryana Employment of Local Candidates Act, 2020

Please find enclosed the following regarding relaxations for some categories of employers with regard to the Haryana Employment of Local Candidates Act, 2020:

• Order dated 17th January 2022, issued by the Labour Department, Haryana
• Media clipping of Hindustan Times dated 19th January 2022

Members may kindly refer to the enclosed order for detailed information.

Stay on the Haryana State Employment of Local Candidates Act, 2020

Have received this news:

The Writ Petitions challenging the constitutionality of the Haryana State Employment of Local Candidates Act, 2020, were heard by the Punjab and Haryana High Court today. After hearing Mr. Tushar Mehta, Solicitor General of India on behalf of the State of Haryana, the High Court admitted the Writ Petitions and granted a stay on the operation of the Act.

Sorry, don't have the citation. But the act is now stayed until the courts come with a decision.

There is a similar act passed by Jharkhand. Hope a similar stay will be granted.

Dear Members, PFA herewith a copy of the orders dated 17.02.2022 passed by the Hon'ble Supreme Court of India regarding the impugned interim order dated 03.02.2020 passed by HC P&H, which stayed the implementation of the Haryana State Employment of Local Candidates Act, 2020. After reviewing these orders, it is revealed that the stay order passed by the HC has been set aside. However, the Haryana State Government has been directed not to take any coercive steps against employers. This indicates that if any employers do not implement this Act, the Government will not prosecute the management. The HC has been given one month to dispose of the matter.

Regards, R N KHOLA