Bengaluru: The Karnataka cabinet has approved the draft of the State Employment of Local Candidates in the Industries, Factories, and Other Establishments Bill, 2024. This bill mandates reserving 50% of management jobs and 75% of non-management roles for local candidates (Kannadigas) in the private sector, including IT companies.

The draft bill specifies that local candidates without a secondary school certificate in Kannada must pass a designated Kannada proficiency test. If qualified local candidates are unavailable, industries, factories, and establishments must collaborate with government agencies to train and engage local talent within three years.

Karnataka Labour Minister Santosh Lad emphasized the importance of prioritizing Kannadigas, particularly since many private firms receive subsidies and other benefits from the government to set up their establishments. “The bill mandates giving priority to Kannadigas, especially since many private firms avail subsidies and other benefits from the government to set up establishments. Therefore, we aim to create more jobs for local Kannadigas,” Lad told Moneycontrol. He added that the draft bill aims to provide opportunities for local candidates in various sectors across the state. The bill will be tabled during the current legislative session.

According to the draft bill, any employer, occupier, or manager failing to comply with these provisions could face penalties ranging from ₹10,000 to ₹25,000, with repeated violations leading to additional penalties of ₹100 per day until compliance is achieved.

Criteria for Local Candidates

The draft bill defines a ‘local candidate’ as someone who:

  • Is born in Karnataka.
  • Has been domiciled in the state for 15 years.
  • Is fluent in Kannada.
  • Passes a required test by the nodal agency.

The ‘management category’ includes supervisory, managerial, technical, operational, administrative, and higher roles, excluding directors. The ‘non-management category’ comprises clerical, unskilled, semi-skilled, skilled, IT/ITES employees, and contract or casual workers in various establishments.

Provisions and Compliance

Industries or establishments can apply for relaxations from the mandated quotas under certain conditions, subject to government approval. Any granted relaxation shall not be less than 25% for management positions and 50% for non-management roles.

A nodal agency will oversee compliance, verifying reports submitted by employers and requesting additional information or documents as needed. The government may appoint an authorized officer to ensure adherence to the Act’s provisions.

In a related announcement, CM Siddaramaiah wrote on X (formerly Twitter) that the cabinet has approved a decision to introduce a law mandating that all private industries hire only Kannadigas for group ‘C’ and ‘D’ (blue-collar) jobs.

While the cabinet has approved the draft bill, labour department officials noted that it has yet to be tabled in the legislature.