Aakansha SharmaThe severity of the corona virus impact in India has not only jolted the health sector but also brought forth several doubts about the employment more specifically in private sector. The thoughtfulness of policy maker could be shown through the steps taken by the Haryana Government, who recently notifies the Haryana State Employment of Local Candidates, 2020. The Act ensuring employment opportunity for the youth of the state in private sector is a commendable achievement, as looking on the other side government jobs are being given only on the basis of merit.

Overview from 2020

On the line of Andhra Pradesh Government, Haryana too has announced that it wants 75% of private sector jobs in the state reserved for local candidates. The state assembly has passed the Haryana State Employment of Local Candidates Act, 2020 paving way for more employment opportunities for locals in private sector.

All companies, societies, trust, limited liability partnership firms and any person employing 10 or more persons. The definition of “employer” given in the bill means a company registered under Companies Act, 2013 (Central Act 18 of 2013) or a society registered under the Haryana Registration and Regulation of Societies Act, 2012.

It shall not include the central government or state government or any organization owned by the central or state government.

A candidate who is domiciled in State of Haryana is called a local candidate. The candidate will also mandatorily have to register himself or herself on a designated portal while seeking benefit under this reservation. Employer too will have to make recruitment’s through this portal only.

The main aim behind this law can be inferred from the enactment of the act was tackling the unemployment among Haryana State. As per the government, the law will discourage the influx of migrant seeking low paid jobs. This act will have a significant impact on infrastructure and also an attempt towards the proliferation of slum.

In March 2021, Haryana State assembly passed Haryana State Employment of Local Candidates, 2020. The Act sought to reserve 75% of new jobs for local people in various companies, societies, trusts, and limited liability partnership firms situated in the state of Haryana. In a nutshell, the new reform reserves 75% of new jobs for local candidate are in private sector.

Thereafter in November 2021, the government notifies the Haryana State Employment of Local Candidates Act, 2020, which provides 75% reservation for those having state domicile in the state’s private sector, will come into force from January 15th, 2022.


  • Applicability- This Act applies to employers of private sector companies, societies, trusts, limited liability partnership firms, and any person employing 10 or more persons. It will be in force for a period of 10 years.
  • Compulsory registration–Employers must register employees with a monthly salary below Rs 30,000 on a designated portal. An employer cannot employ a new person till such registration is complete.
  • Exemption- Employer may claim an exemption from providing reservation to locals if adequate number of local candidates of desired skill, qualification, or proficiency is not available.


Though, State notifies the act and it will come into force in 2022. But drawbacks could be seen in several aspects such as disregard diverse labor pool, regional inequality, effecting ease of doing business. Also, one can infer that the act seems to have a drastic effect on economic infrastructure of Haryana but adversely impact on employment level in other states. The main reason behind that people who are not Haryana domicile had been dependent on the Haryana for employment.as Haryana has prominent IT and automobile hubs in cities like Gurugram, Faridabad etc. Not only employees but Haryana also depend on the human resources of Delhi, Punjab etc. However it is expected that the act will have a high contribution in eradicating unemployment from the state of Haryana.

DISCLAIMER– This is an effort by Lexcomply.com to contribute toward improving compliance management regime. User is advised not to construe this service as legal opinion and is advisable to take a view of subject experts.

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