For the first time in India’s history, 75% of all jobs in private companies will be reserved for locals. And this has happened in Andhra Pradesh.
Does this forced reservation makes sense?
75% Reservation For All Private Jobs For Locals
Jagan Mohan Reddy, the newly elected Chief Minister of Andhra Pradesh has kept his promise and has enforced 75% reservation in all private jobs for locals.
The Andhra Pradesh assembly passed the crucial Andhra Pradesh Employment of Local Candidates in Industries /Factories Act, 2019, which means that every private company will need to hire 75% of their total staff/employees locally.
No matter if the company is being supported financially or otherwise by the State Govt. or not.
This way, Andhra Pradesh has become the first state in India to enforce such reservation.
Earlier, Congress-ruled Madhya Pradesh had also implemented a similar rule of 70% reservation for locals in all private companies. However, this reservation is meant only for those private companies which are availing some sort of financial or other benefits from the Stae Govt.
But in Andhra Pradesh’s case, the 75% reservation will be implemented for all private companies, factories, and industries.
What If There Are No Skilled Employees?
In case there are no skilled employees for a private company, the State Govt. has made it mandatory to train the locals, and make them job-ready.
Hence, there will be no excuse regarding lack of skilled employees for private companies.
This rule will be implemented within 3 years from now, and every month, the private companies need to share a report with a nodal agency regarding the number of locals hired in their company, and the number of outsiders working.
We are not sure if there are any provisions of punishment or penalty, in case any private company is not able to implement this rule.
Which Companies Would Be Exempted?
Companies which are registered under the First Schedule of the Factories Act won’t be required to follow the reservation rule.
This can cover companies working in the hazardous zone such as petroleum, cement, pharma, coal, fertilizers, and others.
This reservation rule can severely impact the IT companies, which are mainly located in Hyderabad city, which is still the capital of Andhra Pradesh for next 10 years.
It would be interesting to observe how global biggies such as Microsoft, Google and others comply with this 75% job reservation for locals in the state.
We will keep you updated, as we receive more details.
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