G20 sherpa Amitabh Kant critiques Karnataka job quota; says will harm IT ecosystem

Karnataka Job Issue: In favouring Kannadigas, the Karnataka Cabinet has approved the draft State Employment of Local Candidates in Industries, Factories, and Other Establishments Bill. This legislation mandates reserving 50 per cent of management jobs and 75 per cent of non-management jobs for local residents. The Bill applies to the entire private sector, including the IT industry. Reacting to the legislation, G20 sherpa, Amitabh Kant in an exclusive conversation with Republic Business said, “This is not a good move and will have a damaging impact for the IT ecosystem in the country. Rather than expanding this move will harm the IT sector.”

The bill is scheduled to be presented during the current legislative session.

Definition of a Local Candidate

The Act defines a local candidate as an individual born in Karnataka and domiciled in the state for 15 years. Additionally, candidates must speak, read, and write Kannada proficiently, demonstrated either by a secondary school certificate with Kannada as a language or by passing a Kannada proficiency test specified by the nodal agency.

Training and Exemptions

In cases where there is a lack of qualified local candidates, establishments are required to collaborate with government agencies to train candidates within three years. The Bill also provides exemptions for hiring establishments if sufficient local candidates are unavailable. Establishments can apply to the government for relaxation from the Act’s provisions. After a proper inquiry, the government may issue appropriate orders, which shall be final.

However, the percentage of local candidates must not fall below 25 per cent for management positions and 50 per cent for non-management categories. Non-compliance with the reservation mandate may attract penalties ranging from Rs 10,000 to Rs 25,000, with additional penalties of Rs 100 per day for continued violations until compliance is achieved.