Localising the labour force through reservations

What is the Andhra Pradesh Employment of Local Candidates in Industries/Factories Act? What has been its implications?

On Saturday, the Haryana Government notified a law reserving 75% jobs for locals, which will come into effect from January 15, 2022. The law requires firms to reserve 75% of all jobs offering a salary of less than ₹30,000 a month for eligible candidates of State domicile. Following the Haryana move, the Jharkhand Assembly passed a Bill providing 75% reservation for locals in the private sector for salaries up to ₹40,000 a month. In 2019, the Andhra Pradesh Government had passed a similar law — the A.P. Employment of Local Candidates in Industries/Factories Act.

The Andhra Pradesh law, passed by the Assembly in July 2019, and notified promptly next month, reserved 75% of jobs for locals in industries and factories, including any joint venture and project taken up under the public-private partnership (PPP) mode. Where suitable local candidates were not available, the industry or factory would be given three years to train local candidates with “active collaboration of the Government”. The Government also laid down that industry would have to apply for any exemptions from the Department of Labour, Employment and Training before sourcing employees from other States.