UPDATE ON HARYANA STATE EMPLOYMENT OF LOCAL CANDIDATES ACT, 2020

The Haryana State Employment of Local Candidates Act, 2020 (“Local Candidates Act”) came into effect on January 15, 2022. The Haryana Government had earlier specified https://local.hrylabour.gov.in as the “designated portal” under the Local Candidates Act and rules for the purpose of registration of local candidates.

The Local Candidates Act provides for a unique identification number (UIN) to be provided to all types of businesses operating in the State of Haryana on the Haryana Udhyam Memorandum Portal which is called the Haryana Udhyam Memorandum Identification Number (HUM ID). Every employer is required to use its HUM ID and register its existing employees earning a gross monthly salary of up to INR 30,000 (USD 400 approximately) on the designated portal. Local candidates desirous of seeking employment under the Local Candidates Act are also required to register themselves on the designated portal.

On January 17, 2022, the Haryana government issued an order to exempt certain categories of employers/vacancies from the applicability of the Local Candidates Act. The category wise exemption is as under:

(i) vacancies in new Startups and new Information Technology (IT) / Information Technology Enabled Services (ITES) of new employers for a period of two year from the date of commencement of work or business or manufacturing process;

Note: New Startups and new Information Technology (IT) / Information Technology Enabled Services (ITES) for the purpose of this order means an employer who has established or has commenced its operation within a period of two years, after the commencement of Local Candidates Act.

(ii) short term employment, the total duration of which is less than forty five days,

(iii) vacancies under any employer, who primarily engages in agriculture activities, such as growing/harvesting of field crops, fruits, nuts, seeds, vegetables, tea, coffee or raising animals, growing and harvesting of fish or other animals from a farm, ranch or their natural habitats but does not include any agricultural allied activity which involve therein manufacturing, trading, processing of agriculture products or produce or covered under the definition of establishment, as defined under sub clause (viii) of section 2 of the Haryana Shops and Commercial Act, 1958 or Factory, as defined under sub clause (m) of section 2 of the Factories Act, 1948;

(iv) vacancies under any employer for domestic work or services in residential homes;

(v) vacancies, which are being filled up through promotion or transfer or by absorption of surplus staff of any unit of the same employer in the State, and

(vi) any class, post, skill and category of employment, as may be notified by the Government from time to time, where the Local Candidates of the desired skill, qualification or proficiency required in such employment are not available.

Anhad Law’s Perspective

While the Local Candidates Act has already been challenged before the Hon’ble High Court of Punjab and Haryana on the grounds of legislative incompetence and violation of fundamental rights of equality, equal opportunity and to carry on business or occupation, the exemptions provided by the State Government, to new IT companies and start-ups for two (2) years and, to work related to the sowing of crops, embroidery, primary works related to fruits, vegetables, tea leaves, coffee, fish, animals, domestic servants and those industries for which skilled workers are not available, extend limited relief to certain exempt categories and also show the flexibility of the Government in implementing the Local Candidates Act.

The aforesaid exemptions do not benefit already settled categories of large employers and they have to wait to see the outcome of the petition pending before the Hon’ble High Court.

-Manishi Pathak, Founding Partner and Ranjan Jha, Partner

Disclaimer: The contents of the above publication are based on understanding of applicable laws and updates in law, within the knowledge of authors. Readers should take steps to ascertain the current developments given the everyday changes that may be occurring in India on internationally on the subject covered hereinabove. These are personal views of authors and do not constitute a legal opinion, analysis or interpretation. This is an initiative to share developments in the world of law or as may be relevant for a reader. No reader should act on the basis of any statement made above without seeking professional and up-to-date legal advice.