The Haryana Government has decided to exempt players operating in certain categories from the ambit of the recently implemented law that makes it mandatory for companies to reserve 75 per cent jobs offering gross monthly salaries of upto ₹30,000 for local candidates for new recruitments.

According to an order issued by the Labour Department, Haryana, new start-ups and new IT/ITES companies will be exempted from this law for a period of two years. Also, companies looking at employing workers for the short-term of less than 45 days will be also be exempted from the provisions of the law.

Agri sector

Some limited exemptions have also been given in the agricultural sector. The order stated that vacancies under employers engaged in agricultural activities such as growing or harvesting of crops or raising animals and fish will be exempted from this regulation. However, this does not include agricultural-allied activities including manufacturing, trading and processing of agricultural products or covered under the definition of “Establishment” under the Haryana Shops and Commercial Act. Employers for domestic work and services in residential homes are also exempted. In addition, employers are exempted from the law for vacancies that are filled through promotion or transfer or absorption of the surplus staff of any unit of the same employer.

Sunjay Kapur, President, ACMA said that exemptions to new start-ups and IT companies is definitely a positive development and any kind of exemptions are welcome. But he added that the broader concerns raised by various sectors regarding restrictive practices, due to the implementation of this law, still remains a challenge.

Industries move court

With some Haryana-based industry bodies moving to the Punjab and Haryana High Court challenging the law, industry players are also now pinning their hopes on the courts for relief. The Punjab and Haryana High Court is scheduled to hear the petition challenging the law on February 2.

Rajiv Chawla, Chairman, Integrated Association of Micro, Small and Medium Enterprises of India (IamSMEofIndia) pointed out that any exemptions will only serve as a short-term solution. “There are no exemptions for sectors such as textiles or automobiles. The larger challenge remains that this law hurts the competitiveness of the industry, impacts ease of doing business and also increases the compliance burden. Focus should infact be on skilling the youth of the State in collaboration with the industry players for employment generation,” he added.