Karnataka’s New Job Reservation Bill: Prioritizing Locals in Management and Non-Management Positions

The Karnataka government has introduced groundbreaking legislation, mandating that all private industries hire only Kannadigas in Group C and Group D categories. Announced by Chief Minister Siddaramaiah via a tweet on Tuesday, this bill aims to prioritize local employment in the state.

Provisions of the Bill

The Karnataka State Employment of Local Candidates in Industries, Factories, and Other Establishments Bill, 2024, mandates that 50% of management positions and 75% of non-management positions must be filled by local candidates. Violation of these provisions could result in penalties ranging from ₹10,000 to ₹25,000, with an additional ₹100 fine for each day the violation continues until compliance is achieved.

Eligibility and Training

To qualify for reserved positions, candidates must have a secondary school certificate with Kannada as a language or pass a Kannada proficiency test administered by a designated nodal agency. If qualified local candidates are unavailable, industries and establishments must take steps to train and engage local candidates within three years. The Bill also includes a clause that allows for relaxation of its provisions if a sufficient number of local candidates are not available. Establishments can apply for such relaxation, and the government may grant it after due inquiry.

Nodal Agency

A nodal agency will be established to verify employment reports from industries and submit periodic reports to the government. This agency will also be responsible for administering the Kannada proficiency test and ensuring compliance with the Bill's provisions.

Definition of Local Candidate

A ‘local candidate’ is defined as an individual born in Karnataka, residing in the state for at least 15 years, fluent in Kannada, and passing the 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.

Government Oversight

In February, Shivaraj S Tangadagi, the Minister for Kannada and Culture, stated that all MNCs operating in the state must prominently display the number of Kannadigas employed on notice boards. Non-compliance could result in the revocation of permissions granted to these companies.

Industry Reactions

The Bill has sparked significant criticism from industry leaders, who label it as discriminatory and potentially harmful to Karnataka's thriving tech sector.

• Mohandas Pai, Chairman of Manipal Global Education Services, criticized the Bill as "fascist" and unconstitutional, urging for its repeal. He argued that it imposes undue restrictions on private sector recruitment and questioned the necessity of a language test.

• Kiran Mazumdar-Shaw, Executive Chairperson of Biocon Limited, expressed concerns that the Bill could undermine Karnataka's leading position in technology. She advocated for exemptions for highly skilled recruitment to ensure the state's competitive edge in the tech industry.

• RK Misra, Co-Chairman of ASSOCHAM Karnataka and Co-Founder of YULU, called the Bill "short-sighted" and warned that government monitoring in private companies could deter Indian IT and Global Capability Centres from operating in the state.

Despite the backlash, the Karnataka government stands by the Bill, emphasizing the need to prioritize local employment and boost opportunities for Kannadigas. The coming months will reveal how this legislation impacts the state's economy and its reputation as a tech hub.