Haryana has finally notified the Haryana State Employment of Local Candidates Act, 2020 and Haryana State Employment of Local Candidates Rules, 2021 to tackle the issue of unemployment in the State.

Laws have come into force throughout the State of Haryana w.e.f. 15^th January, 2022. Following points summarize the laws:-

• Act applies to all the Companies, Societies, Trusts, Limited Liability Partnership firms, Partnership Firm and any person employing 10 or more persons and an entity.
• Employers in Haryana need to employ 75% of the local candidates with respect to the posts where the gross monthly salary/wages are not more than 30,000 rupees.
• Such employers need to register their existing employees with https://local.hrylabour.gov.in by 14th April, 2022. After that employers hiring new employees shall be registering them prior to the appointment.
• Employers shall file online quarterly return for new employment in form-III by 20th April, 20th July, 20th Oct and 20th Jan every year.
• Employer shall maintain records in digital form containing the details like number of employees, post details, number of Local Candidates recruited / appointed etc.
• An employer may submit an application in form-I for availing exemption from the requirement of employing 75% of the local candidates where adequate number of local candidates of the desired skill, qualification or proficiency are not available.
• Following employers are exempted from this law:-
  (i) Vacancies in new Startups and new Information Technology (IT) / Information Technology Enabled Services (ITES) of new employers for a period of 2 year from the date of commencement of work or business or manufacturing process;
  (ii) Short term employment, the total duration of which is less than 45 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 (Punjab Act 15 of 1958) or Factory, as defined under sub clause (m) of section 2 of the Factories Act, 1948 (Central Act 63 of 1945);
  (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.
• This law is valid for 10 years.
• Penalty for contravening the provisions of the Act and rules goes upto 5 lakh rupees.
• Definitions:- “Local Candidate” means a candidate who is domiciled in the State of Haryana.

Explanation: A person is considered domicile in Haryana if he has been permanently living in Haryana for a period of not less than 5 years or who have permanent house in Haryana but on account of their occupation have been living outside Haryana. Such candidates need to obtain the domicile certificate from the Haryana Govt. either online or offline. While obtaining the domicile certificate the candidate needs to ensure that they have a Parivar Pehchan Patra (PPP) issued under the Haryana Parivar Pehchan Act, 2021.

“New Startups and new Information Technology (IT) / Information Technology Enabled Services (ITES)” means employer who has established or has commenced its operation within a period of two years, after the commencement of this Act.

“Employer” means a Company registered under the Companies Act, 2013 (Central Act 18 of 2013) or a Society registered under the Haryana Registration and Regulation of Societies Act, 2012 (1 of 2012) or a Limited Liability Partnership Firm as defined under the Limited Liability Partnership Act, 2008 (Central Act 6 of 2009) or a Trust as defined under the Indian Trust Act, 1882 (Central Act 2 of 1882) or a Partnership Firm as defined under Indian Partnership Act, 1932 (Central Act 9 of 1932) or any person employing ten or more persons on salary, wages or other remuneration for the purpose of manufacturing or providing any service or such entity, as may be notified by the Government from time to time, but shall not include the Central Government or the State Government or any organisation owned by the Central Government or the State Government.

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CS Anuj Malik

Mr. Anuj Malik is a CS (Company Secretary) as well as law graduate (LL.B.). He is an associate member of the Institute of Company Secretaries of India (ICSI) for 9 years. He has-
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He has been associated with Lexcomply for around 10 years and currently working as a Senior Manager- Global Compliance.