COMPLIANCES FOR EMPLOYERS OF THE STATE OF HARYANA – The Haryana State Employment of Local Candidates Act, 2020
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COMPLIANCES FOR EMPLOYERS OF THE STATE OF HARYANA – The Haryana State Employment of Local Candidates Act, 2020

This article covers an overview on the applicability, registration, reporting, consequences on non-compliances of the provisions of “The Haryana State Employment of Local Candidates Act, 2020 and rules made thereunder”.

The provisions of the following Acts & Rules arecovered in this article:

  1. The Haryana State Employment of Local Candidates Act, 2020;
  2. The Haryana State Employment of Local Candidates Rules, 2021;
  3. Notification dated 6th November, 2021 by Labour Dept., Haryana;
  4. Exemption order dated 17.01.2022 by Labour Dept., Haryana.

INTRODUCTION:

With an intent to increase the employment opportunities for the local candidates, the Government of Haryana has introduced ‘The Haryana State Employment of Local Candidates Act, 2020’, which provides 75% employment to the local candidates in the new employment in private sector in the state of Haryana.

The act has become effective from 15th Jan 2022 and will be applicable for a period of 10 years from the date of its commencement.

APPLICABILITY:

This Act applies to:

i) All the Companies, Societies, Trusts, Limited Liability Partnership firms, Partnership Firm

and

ii) Any person/employer employing 10 or more persons in any trade/ business/ manufacturing/ enterprises.

The Act applies in case of new recruitments only, i.e., (not with a retrospective effect) in private sector only and does not include any Central Government or the State Government or any organisation owned by the Central Government or the State Government;

After the commencement of this Act, all the employers in the private sector are required to provide 75% employment of new jobs to the local candidate in new employment for the posts where the gross monthly salary or wages are not more than INR 30,000/- (reduced from INR 50,000/- vide Notification dt 6th November, 2021).

Employer can recruit the local candidates from any district of the State and can also restrict the employment of local candidates from any district to 10% of the total number of local candidates.

KEY DEFINITIONS:

“Appellate Authority” means an officer of the Government not below the rank or equivalence of the Labour Commissioner, as may be designated by notification in the Official Gazette for the purpose of section 9.

“Authorised Officer” means an officer of the Government not below the rank or equivalence of the Sub-Divisional Officer (Civil) or any other officer, as may be designated by notification in the Official Gazette for the purpose of section 7.

“Designated Officer” means an officer of the Government not below the rank or equivalence of Deputy Commissioner as may be designated by notification in the Official Gazette for the purpose of section 5.

“Designated portal” means (https://local.hrylabour.gov.in/) a portal specifically designed and designated for the purpose of registration of local candidates and employees under sections 3 and 4;

“Domiciled person” means a bonafide resident of Haryana satisfying the conditions as may be issued by the Government from time to time and having Parivar Pehchan Patra (PPP) issued under the Haryana Parivar Pehchan Act, 2021 (20 of 2021) for the purposes of this Act;

“Employee” means any person employed by the employer on payment of salary or wages or any other remuneration, but does not include an apprentice engaged under the Apprentices Act, 1961 (Central Act 52 of 1961);

“Employer” means a

  • Company registered under the Companies Act, 2013 (Central Act 18 of 2013) or
  • Society registered under the Haryana Registration and Regulation of Societies Act, 2012 (1 of 2012) or
  • Limited Liability Partnership Firm as defined under the Limited Liability Partnership Act, 2008 (Central Act 6 of 2009) or
  • Trust as defined under the Indian Trust Act, 1882 (Central Act 2 of 1882) or
  • Partnership Firm as defined under Indian Partnership Act, 1932 (Central Act 9 of 1932) and  
  • any person employing ten or more persons on salary, wages or other remuneration for the purpose of manufacturing or providing any service and
  • any entity as may be notified by the Government, from time to time.

“Haryana Udhyam Memorandum Identification Number (HUM ID)” means unique identification number to be issued on resistance to all types of enterprises and businesses operating in the State at Haryana Udhyam Memorandum Portal (https://harudhyam.edisha.gov.in/).

“Local Candidate” means a candidate who is a domiciled person in the State of Haryana;

REGISTRATION & REPORTING:

Employer:

On and from the date of commencement of this Act, every employer shall, using its HUM Id register existing employees receiving gross monthly salary or wages not more than INR 30,000/- irrespective of their State of domicile on the designated portal, within a period three months of coming into force of this Act i.e., from 15.01.2022.

An employer cannot initiate any recruitment process without registration of the existing employees falling under the above criteria.

Reporting: Every employer shall furnish a quarterly report by 20th day from the last working day of the following quarter under reporting in Form III (Quarterly return for new employment) of the local candidates employed and appointed

Maintenance of records:

Employer is also required to maintain the records in digital form and make available for inspection & verification by the Designation/Authorised Officers:

(a) number of employees (regular, temporary, contractual, casual and fixed term employee) on the last date of every quarter.

(b) occupational/ post-wise details of employees on last date of every quarter.

(c) number of Local Candidates recruited / appointed during every quarter.

(d) record of exemption obtained during the quarter due to non-availability of suitable candidates.

(e) record of training imparted or camp for skill development organized for Local Candidates.

(f) any other relevant record.

Exemptions:

An employer can claim for exemption in Form I in the designated portal to the Designated Officer from recruiting local candidates on the basis of non-availability of local candidates with the desired skill, qualification and proficiency to the Designated Officer.

In addition, Haryana Labour Dept. vide its order dated 17.01.2022 has granted deemed exemptions to some categories of employers:

  • Vacancies in new Start-ups and new Information Technology (IT)/ Information Technology Enabled Services (ITES) of new employers for a period of two year from the date of commencement of work or business or manufacturing process;
  • Short term employment, the total duration of which is less than 45 days;
  • Vacancies under any employer who primarily engages in agriculture activities but does not include any agriculture allied activity
  • Vacancies under any employer for domestic work or services in residential homes;
  • 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
  • Any class, post, skill and category of employment, as may be notified by the Govt from time to time, where the Local Candidate of desired skill, qualification or proficiency required in such employment are not available.

*New Start-ups & new IT/ITES for the purpose of exemption means employer who has established or has commenced its operations within a period 2 years, after commencement of this Act.

Employee:

No local candidate shall be eligible to avail the benefits under this Act unless he registers himself on the designated portal.

Any local candidate aggrieved by the action of any employer in violation of the any provisions of this Act, may file a complaint online through the designated portal in Form – II

POWERS OF AUTHORISED OFFICER:

The Authorised Officer has power to

-examine the reports furnished by the employer and call for any information, record, or document for verifying such reports and accordingly after verifying may pass and place it on website of Govt., any order as may be necessary for complying with the objectives of this Act;

-right to enter, by giving at least one day prior notice and between the hours of 6.00 and 18.00, at all reasonable times with assistance, to perform any functions entrusted to him or to determine whether the provisions of this Act or rules has been complied with or to examine any record, register or document if he has reason to believe that an offence has been or is being committed.

The Authorised Officer also has power to inspect, with the prior permission of Labour Commissioner by giving 3 days prior notice, on account of any information or complaint received with regards to the violation of any of the provisions of the Act or Rules made thereunder on the grounds as mentioned under this Act or Rules.

APPEAL:

Any employer aggrieved by an order passed by the Designated Officer under section 5 or by the Authorised Officer under section 7, may within 60 days, prefer an appeal to Appellate Authority in a prescribed manner.

CONSEQUENCES ON ACCOUNT OF CONTRAVENTION OF THE PROVISIONS UNDER THIS ACT:

The Act has specified detailed consequences on, not only, contravention of general provisions but also on specific provisions of the Sections under this Act by the employer.

Nature of contraventionPenalty provisions
On contravention of -any provisions of this Act or rules made thereunder or -any order in writing given under this ActNot less than INR 10,000/- which may extend to INR 50,000/-. If the contravention is a continuing one even after the conviction, then, with further penalty which may extend to INR 100/- for each day till the contravention continues.
On contravention of -non-registration of employees (gross wages INR 30,000/- p.m.) as per Sec 3 within the stipulated time period or engaging/employing any new person without registration of such employees or -any order in writing given under this ActNot less than INR 25,000/- which may extend to INR 1 Lac. If the contravention is a continuing one even after the conviction, then, with further penalty which may extend to INR 500/- for each day till the contravention continues.
On contravention of -Provisions of not employing 75% of the local candidates in the posts where the gross wages are not more than INR 30,000/- p.m. as per Sec 4 or   -any order in writing given under this ActNot less than INR 50,000/- which may extend to INR 2 Lacs. If the contravention is a continuing one even after the conviction, then, with further penalty which may extend to INR 1000/- for each day till the contravention continues.
On account of disobey of any order in writing made by the Designated Officer against the application for claiming exemption as per Sec 5 from employing local candidates.Not less than INR 10,000/- which may extend to INR 50,000/-. If the contravention is a continuing one even after the conviction, then, with further penalty which may extend to INR 100/- for each day till the contravention continues.
Falsification & non-furnishing of recordsINR 50,000/- for each offence. On repeated conviction of the same offence, employer shall be punishable with penalty not less than INR 2 Lacs which may extend to INR 5 Lacs.

Disclaimer: The contents of this articles are for information purpose only and not to be construed as a professional advice. We shall not be liable for any consequences in any form arising out of or in connection with the use of this information.

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