Karnataka Congress govt puts controversial job quota bill on hold

The Congress government in Karnataka has put the controversial job quota bill on hold following huge backlash from the inudstry.

The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, was cleared by the Cabinet on Monday. The bill, which makes it compulsory for private firms to reserve jobs for Kannadigas in their establishments, was to be tabled in the Assembly on Thursday.

Karnataka Chief Minister Siddaramaiah in a post on X wrote, "The bill approved by the cabinet to provide reservation for Kannadigas in private sector organizations, industries and enterprises has been temporarily put on hold. This will be revisited and decided in the coming days."


In another post in English, Siddaramaiah said "the draft bill intended to provide reservations for Kannadigas in private sector companies, industries, and enterprises is still in the preparation stage".

He said a "comprehensive discussion will be held in the next cabinet meeting to make a final decision".



Many industry veterans had objected to the proposed quota, calling it 'fascist,' and 'short-sighted.'

"This bill should be junked. It is discriminatory, regressive and against the constitution @Jairam_Ramesh (Congress leader) is govt to certify who we are? This is a fascist bill as in Animal Farm, unbelievable that @INCIndia can come up with a bill like this- a govt officer will sit on recruitment committees of private sector? People have to take a language test?" said well-known entrepreneur and former Chief Finance Officer of Infosys, TV Mohandas Pai on 'X'.

Pharma company Biocon Managing Director Kiran Mazumdar Shaw said, "As a tech hub we need skilled talent and whilst the aim is to provide jobs for locals, we must not affect our leading position in technology by this move. There must be caveats that exempt highly skilled recruitment from this policy."

ASSOCHAM, Karnataka co-chairman R K Misra said on 'X', "Another genius move from Govt of Karnataka. Mandate LOCAL RESERVATION & APPOINT GOVT OFFICER IN EVERY COMPANY to monitor. This will scare Indian IT & GCCs. Short sighted."

Karnataka's move is similar to a bill introduced by the Haryana government, mandating 75 per cent reservation in private sector jobs to the residents of the state. It was, however, struck down the Punjab and Haryana High Court on November 17, 2023.

Contentious provisions of Karnataka Job Bill
The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, makes it compulsory for private firms to reserve jobs for Kannadigas in their establishments.

"Any industry, factory or other establishments shall appoint fifty percent of local candidates in management categories and seventy percent in non-management categories," the bill read.

If the candidates do not possess secondary school certificate with Kannada as a language, they should then pass a Kannada proficiency test as specified by the 'Nodal Agency', it added.

The nodal agency will have powers to call for any records, information or documents in the possession of an employer or occupier or manager of an establishment for the purpose of verifying the report.

The Government may appoint an officer not below the rank of Assistant Labour Commissioner as the authorised officer regarding compliance of the provisions of the Act.

Any Employer or Occupier or Manager of an Establishment, who contravenes the provisions of this Act should be liable for a penalty between Rs 10,000 to Rs 25,000.