The Haryana government on Tuesday passed the Haryana Reservation Bill which provides 75 percent reservation for jobs in the private sector to locals.
Decoding the impact of the bill, Rituparna Chakraborty, Co-Founder & Executive VP of TeamLease said that such a policy will be counterproductive and result in fewer jobs in the state.
“I think it completely goes against the fundamental or the basic principle of meritocracy that are followed by organisations and employers when it comes to hiring the best talent,” Chakraborty said in an interview to CNBC-TV18.
“I think such kind of protectionism can actually in the long run scare away employers. In the end that would cost jobs for a state as well,” she said.
According to Chakraborty, it would be difficult for the Haryana government to create 5 lakh jobs as this bill could face a backlash from employers.
“The Haryana government in September (2020) announced the employment policy which would create 5 lakh jobs across different sectors. I don’t know how much of that is possible with these kind of decisions being taken,” she said adding that it was bound to draw a backlash from employers.
The Haryana government has allowed employers to hire outsider if suitable local candidate is unavailable. However, the companies will have to first inform the government about their decision to hire an outsider.
Chakraborty said that organisations do not have the time to follow such processes.
“While the Haryana government has stated that if you do not find local talent, then you can make a petition with the government authorities. I don’t think oragnisations, industries, employers have time for that kind of process to be followed,” she said.
She added that if necessary skillset is found within the locals, companies would anyway not hire an outsider as relocating employees from other states is not an easy process.Watch video for more.