{"id":2371,"date":"2021-04-08T19:19:49","date_gmt":"2021-04-08T13:49:49","guid":{"rendered":"https:\/\/businesstalkmagazine.com\/?p=2371"},"modified":"2022-05-05T19:05:12","modified_gmt":"2022-05-05T13:35:12","slug":"indian-states-fight-each-other-for-jobs-with-laws-to-hire-local","status":"publish","type":"post","link":"https:\/\/businesstalkmagazine.com\/news\/indian-states-fight-each-other-for-jobs-with-laws-to-hire-local\/","title":{"rendered":"Indian states fight each other for jobs with laws to hire locals."},"content":{"rendered":"\n

A slowing economy and a shortage of new jobs have led northern Haryana state to implement a new law last month that restricts private companies from hiring workers from other states. Enacted by a government-controlled by Prime Minister Narendra Modi\u2019s ruling Bharatiya Janata Party, such laws instantly become popular with other states.<\/p>\n\n\n\n

This law in Haryana has heightened concerns among foreign business groups and urged them to look elsewhere. One Korean logistics company that lately shifted operations to Gurugram is now making up alternate plans because its experienced workforce doesn\u2019t meet the new law provisions.<\/p>\n\n\n\n

\u201cThe current restriction is something opposite of ease of doing business,\u201d said Hee Chul Jung, secretary-general of the Korean Chamber of Commerce and Industry in India. \u201cThe new regulation could frighten future investors away that support flexibility and a dynamic business environment.\u201d<\/p>\n\n\n\n

The number of jobs was lost during last year\u2019s nationwide lockdown, leading to a setback to Modi\u2019s promise of generating sufficient employment for the world\u2019s youngest and most prominent workforce as the economy suffered its worst recession since 1952. More states are urging companies to hire local, setting up internal trade restrictions that could further limit growth in Asia\u2019s third-biggest economy.<\/p>\n\n\n\n

The Andhra Pradesh southern state led the way in 2019 to reserve jobs for locals in factories. The mines-rich state of Jharkhand then adopted a similar policy last month. Simultaneously, a top regional party in Tamil Nadu has also declared a job-protection plan to win upcoming elections.<\/p>\n\n\n\n

The law in Haryana took effect last month. It provides a 75% quota for job seekers from the northern state for posts in private companies with a monthly salary of fewer than 50,000 rupees ($683).<\/p>\n\n\n\n

\u2018Slippery Slope\u2019<\/strong><\/p>\n\n\n\n

While the laws are intended at supporting young workers, labor rights advocates have warned they aren\u2019t compliant with constitutional guarantees, including freedom of movement, a right to livelihood, and no discrimination based on place of birth.<\/p>\n\n\n\n

\u201cThe way the Haryana law stands, it looks excessive and of an excluding nature,\u201d said Tanima Kishore, an advocate in the Supreme Court of India, who has worked on labor rights. \u201cIt can be challenged on the ground that it violates people\u2019s constitutional right to carry on any occupation or trade in any part of the country.\u201d<\/p>\n\n\n\n

Apart from potential legal flaws, the law risks driving away companies that have supported to make Gurugram attractive. The city is a center for offshore back-office operations and requires a workforce highly proficient in the English language. This skill may not be simply available in any one state.<\/p>\n\n\n\n

\u201cIt is a slippery slope,\u201d said Jean Dreze, a visiting professor with Ranchi University in eastern India. \u201cIf many states follow these policies there is a risk of unfavorable effects on employment opportunities for large numbers of disadvantaged workers.\u201d<\/p>\n\n\n\n

Read More:<\/strong><\/p>\n\n\n\n