The new law reserves 75 percent of jobs for locals.
Andhra Pradesh on Monday became the first state in the country to introduce reservation in private sector jobs. The state Assembly passed a law that reserves 75 percent of the jobs in factories, industries, and joint venture organisations for residents of the state.
The Employment of Local Candidates in Industries/Factories Act, 2019 which was passed by the Andhra Pradesh Assembly was a poll promise made by the YSR Congress Party.
The new law will apply to both existing and future organisation that it covers. These organisation have been given time of three years to comply fully with the law. They would also have to submit quarterly compliance reports with a designated nodal agency.
The law also has provisions that directs organisations to set up training programmes for locals if it is unable to find the necessarily skilled workforce to meet the requirements of 75 percent reservation.
Reservation for locals however has not been extended to hazardous sectors, such as coal, fertilizers or cement, which are listed in the first schedule of Factories Act of the state.
The law is a first in India. No government - state or Centre - has managed to pass legislation to ensure job reservations in the private sector. And it has not been for a lack of trying. A number of parties and leaders have spoken of and announced such moves, but none have actually come to fruition.
The legislation in Andhra Pradesh comes even as the Kamal Nath government in Madhya Pradesh makes it own move towards reservation for local residents in the private sector. On July 9, the Madhya Pradesh government announced that pass a law that would reserve 70 percent jobs in private sector companies. It had also announced that it would raise the restrictions on residents of other states appearing for competitive and job-recruitment examinations in the state.
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 "Private sector reservation was one of Jagan Mohan Reddy's poll promises.")
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