The Karnataka Cabinet has approved a bill which will make it mandatory for industries, factories and other establishments located in the state of Karnataka to hire 50% local candidates for management positions and 75% local candidates for non-management positions.The bill was approved in a cabinet meeting chaired by the Karnataka Chief Minister, following protests by industry bodies against the local policy.
Reservation for Locals in Jobs as per Indian Constitution: Constitutional or Unconstitutional
Provisions under Article 14 of the Indian Constitution
- It guarantees equality before the law and equal protection of laws to all citizens of India.
- Potential violations: Reservation for locals may create unequal opportunities for non-locals, which is a violation of the principle of equality of the Indian Constitution.
Provisions under Article 15 of the Indian Constitution
- Under this article, the Constitution of India prohibits discrimination against any citizen of India on the grounds of his religion, race, caste, sex or place of birth.
- Potential violation: Reserving jobs for locals on the basis of place of birth or residence status may discriminate against non-locals.
Provisions under Article 16
- The Constitution of India ensures equality of opportunity for all citizens of India in matters relating to employment or appointment to any office under any state.
- Potential violation: Although it allows reservation for backward classes, it does not explicitly extend this provision to private employment, making mandatory quotas for locals potentially unconstitutional.
Provisions under Article 19
- Under this article, the Constitution guarantees freedom to move freely throughout the territory of India to any citizen of India.
Likely to violate the freedom of movement and residence of Indian citizens within any state
- Imposition of local reservation may restrict the free movement of people/citizens of other state seeking employment opportunities between different states of India, thereby violating their freedom of movement and residence.
Sarojini Mahishi Report
- The report submitted in 1984 by Sarojini Mahishi, the first woman MP from Karnataka and former Union Minister, contained 58 recommendations.
- This report recommended 100% reservation for locals in Group C and D jobs in all Central Government departments and Public Sector Undertakings (PSUs) located in the state of Karnataka.
Main reasons why the bill proposed by the Karnataka government is controversial
- Requirement of local reservation: The proposed bill mandates that 50% of management and 70% of non-management posts in industries be reserved for local candidates. This provision has been considered restrictive by the business communities.
- Legal challenges: Similar laws in other states such as Haryana and Andhra Pradesh have faced legal challenges. The Punjab and Haryana High Court had struck down Haryana’s Employment of Local Candidates Act, 2020, which mandated 75% reservation for state residents in private sector jobs. The Punjab and Haryana High Court had struck down Haryana’s law, holding it violative of the constitutional rights to equality (Article 14) and liberty (Article 19).
- Opposition from industry leaders and trade bodies: The bill was “temporarily put on hold” after massive opposition from industry leaders and trade bodies, reflecting the strong objection of the business community.
- Current status: A similar law in Andhra Pradesh is still under judicial review, while Jharkhand’s law has not yet been implemented, indicating that controversies and legal complexities will continue to accompany such reservation policies.