THE JHARKHAND STORY NETWORK
Ranchi, March 25: In the Jharkhand Vidhan Sabha on Tuesday, Independent MLA Jairam Mahto raised concerns regarding the implementation of 75% reservation for local candidates in private companies. He pointed out that, despite the state government’s directives, private companies have not adhered to this rule. Mahto questioned whether the government would take action against companies violating the order.
Speaking in the House, Mahto stated, “Around 2.5 lakh people are employed in private companies in Jharkhand, yet only 53,000 of them are Jharkhandis. These are official government figures. While we acknowledge that the High Court has placed a stay on this matter, even before the court’s order, companies were not following the government’s directives.”
Mahto further pressed the government on whether it intended to take action against companies that failed to comply with the reservation policy. In response, Labour Minister Sanjay Prasad Yadav assured that the government would investigate the matter and take strict action against any company found violating the order.
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Following this, Mahto questioned the government about its plans after the High Court’s order and the strategies it would implement going forward. Minister Sanjay Prasad Yadav replied that the government would take necessary steps in the best interest of the state and formulate future policies accordingly.
Concerns Over Outsourcing Companies
Jairam Mahto also raised concerns about whether outsourcing companies fall under the category of private companies. He pointed out that while private companies employ nearly two lakh non-Jharkhandis, only 53,000 Jharkhandis are currently employed.
MLA Naveen Jaiswal also sought clarification on whether outsourcing companies should be considered private companies and asked about the policies that would be put in place to ensure 75% reservation for Jharkhandi youth in the private sector.
Implementation Challenges: Minister Sudivya Sonu’s Response
Minister Sudivya Sonu stated that laws cannot be implemented overnight. He asserted that before the High Court’s order, companies were following the reservation policy. He further clarified that outsourcing companies are considered private companies. Supporting this, Labour Minister Sanjay Prasad Yadav confirmed that if any official had provided misleading reports on the matter, action would be taken against them.
Labor Minister’s Statement on the Employment Act
The labour minister provided details on the Employment of Local Candidates in the Private Sector of Jharkhand State Act, 2021, which was published in the Jharkhand Gazette on January 4, 2022.
According to Clause 4(1) of the Act, after its implementation, every employer is required to reserve 75% of jobs for local candidates in positions with a gross monthly salary of up to ₹40,000 or any other limit notified by the government. This applies to both existing vacancies at the time of notification and any new vacancies created thereafter.
The Employment Act, 2021, and Rules, 2022 are currently being enforced, and a dedicated portal (www.jharniyojan.jharkhand.gov.in) has been set up for implementation. As of February 28, 2025, 7,470 establishments have registered on this portal.
However, compliance with the Act is currently on hold due to an interim stay imposed by the Jharkhand High Court in response to case number WPC-5688/2024 on December 11, 2024. The next hearing for this case is scheduled for March 26, 2025.
Despite the stay, the Jharkhand Private Sector Employment of Local Candidates Rules, 2022 has been in effect since September 12, 2022. The government awaits the court’s decision before taking further action.
