Karnataka Government to bring a new bill mandating private companies to reserve jobs for locals

Bengaluru (Karnataka) – The Congress Government in Karnataka has officially approved the draft of the ‘State Employment Bill, 2024’, which includes provision for reservation to locals in private sector jobs. Upon assembly approval, this bill will require that 50% of the managerial posts and 75% of the non-managerial roles be allocated to Kannada speakers. In ‘Group C’ and ‘Group D’ positions, all jobs will be reserved for local residents. Employees in Government roles will be required to pass the Kannada proficiency test. Organisations that violate this law could face fines ranging from Rs 10,000 to Rs 25,000.

The Government has already enforced a law that mandates companies to feature 60% of their signboards in the Kannada language.

Labour Minister of Karnataka, Santosh Lad, pointed out that since private companies benefit from Government subsidies, they are required to include local people in their workforce. The State Employment Bill will lead to greater employment opportunities for Kannadigas. Companies cannot excuse themselves from hiring qualified candidates as per the law. If there is a shortage of qualified local candidates, companies will be obligated to train locals within a three-year timeframe. Certain industries may be exempt under specific conditions, needing to reserve 25% of management positions and 50% of non-management positions. The companies are required to comply with these rules.

Who is a local as per the law ?

The bill specifies that a ‘local’ is the one born in Karnataka or has resided in the State for 15 years or is proficient in Kannada or has passed the required State examination.