The Legislative assembly of Haryana had passed the legislation titled Haryana State Employment of Local Candidates Bill, 2020 on November 5, 2020 which received Governor of Haryana’s assent on March 2, 2021 and became a statute, Haryana State Employment of Local Candidates Act, 2020 (“the Act’)
Since effective date of the Act had not been notified, the Haryana Government has recently issued a notification No. Lab/25467/2021 dated November 06, 2021 and specified January 15, 2022 as enforcement date for the Act. Vide another notification No. Lab./25478/2021 issued on the same date, the Governor of Haryana has notified ₹ 30,000/- (Thirty thousand rupees) as gross monthly salary or wages for the registration by a beneficiary (local candidate as explained below) under the Act.
As per the objects of the Act, it has been enacted to provide seventy-five percent (75%) employment to ‘local candidates’ by an employer in the State of Haryana.
Significant provisions of the Act are as under:
(1) Term: It commences from the date of notification and cease to have effect on the expiry of ten (10) years from the date of its commencement.
(2) Applicability: This Act applies to an ‘employer’ being a Company, Society, Trust, Limited Liability Partnership (LLP) firms, Partnership firm and any person employing ten (10) or more persons, etc., on salary, wages or other remuneration excluding any Central or State government or an organization owned by Central or State government. Such an employer could be engaged in the activity of manufacturing or providing any service or be any such entity, as may be notified by the Government from time to time.
(3) Compulsory Registration: On and from the date of commencement of the Act, every employer is required to register such employees receiving gross monthly salary or wages not more than ₹ 30,000/- (Thirty thousand rupees) (USD 400 approx.) on the designated portal available on the official website of Labour Department, Haryana namely Haryana Udhyam Memorandum portal. An employer will have to update all employment details within three (3) months of this Act coming into force. The proviso to this Section mentions that no person shall be employed or engaged by any employer till the registration of all such employees is completed on the designated portal.
(4) Recruitment of ‘local candidates’: Every ‘employer’ is required to employ seventy-five percent (75%) of local candidates with respect to such posts where the gross monthly salary or wages are not more than ₹ 30,000/- per month (approximately US$ 400)1. Provided that the local candidates may be from any district of the State (of Haryana), but the employer may, at his option, restrict the employment of local candidates from any district to ten percent (10%) of the total number of local candidates.
This also comes with the condition that no local candidate is eligible to avail the benefits under the Act, unless he registers himself on the designated portal.
5) ‘Local Candidate’: means a candidate who is ‘domiciled’ in the State of Haryana.
