Gurgaon: Industry associations in the state have appealed to the government to roll back its decision of 75% reservation for local youths in the private sector. They said they would approach the Supreme Court if the notification wasn’t withdrawn.
Industry owners said such restrictions would not only limit the talent pool of their human resources, but also impact the recovery prospects. “We don’t doubt the intention of the government, but implementing it will be against the spirit of ease of doing business. The enactment of the law has left the entire private sector exasperated and nervous about its growth prospects, especially after the lockdowns,” said Pawan Kumar Yadav, president of the IMT Manesar Industrial Association.
Some businessmen pointed out that though the law aimed at addressing the issue of unemployment, it went against competitiveness. “We urge the government to re-rethink its policy and consider the concerns raised by the industry groups. Else, the Industrial Association of Haryana may go to the Supreme Court against this law,” Yadav said.
On Saturday, the Haryana government enacted one of its poll promises of providing 75% job reservations to local youths. Raja Shekhar Vundru, additional chief secretary in the labour department, notified that the Employment of Local Candidates Act, 2020, would come into effect from January 15 next year. The deadline for companies to upload employees’ data on the state government portal is also January 15.
Vishnu Goyal, the president of the Haryana Chamber of Commerce and Industry, said: “This law is not all in favour of the industry. It will adversely impact the MSME sector the most. Firstly, the state’s demography is such that it lacks unskilled workers. Here, people are either into farming, businesses, or some kind of skilled employment. Secondly, this is not the time to introduce such restrictions on industries. There’s still a labour shortage, prices of raw materials are at an all-time high, the demand is still tepid, fuel prices are affecting the supply chain and so on.”
“Enforcing such an Act will restrict the industries to hire unskilled workers and will eventually derail their operations. We strongly oppose the law and demand the government either defer it or reduce the bracket to 25% or less along with incentives to accommodate such restrictions at a time the industry is still limping back towards pre-lockdown levels,” Goyal added.
A section of industrialists has suggested that the government should consider providing subsidies and create an environment to attract more industries. “We believe that the youth of Haryana should be given employment. There are two ways to provide employment. First, more big industries should be set up here. Second, the focus should be on skill development of the youth of Haryana so that they get employment easily,” said Yadav.





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