IT Sector Presses Panic Button Over Job Reservation Act in Haryana, Threatens Exodus

With IT sector companies worried due to recent local job quota law passed by the Haryana government that seeks to reserve 75 per cent of jobs in private sector, the industry representatives have appealed to the government to reverse the law, which they claim could trigger exodus of companies.

A meeting between Haryana Chief Minister Manohar Lal Khattar and leading industrialists was held on Thursday regarding the same. If reports are to be believed, Khattar has assured the industry heads that he would look into their concerns.

The industry experts have categorically said that it would affect the IT-ITES sector companies in Haryana, which employs more than 4,00,000 people directly.

After the passage of the New Haryana State Employment of Local Candidates Act, 2020, the NASSCOM carried out a survey which covered 73 of the 500 odd companies in Haryana. According to the survey, 80 per cent of these companies which employ over 1.5 lakh employees have stated that this will negatively impact their future business operations and investment plans. Majority of them have threatened to shift their operations to other states since the new law will make it difficult for them to make their businesses viable, the study stated.

Industrialists have also expressed their concern on major skill gap in Haryana where salaries are less than Rs 50,000 per month, which include fields like communication, spoken as well as written, AI and machine learning Skills, analytical and statistical skills, finance and accounting, programming skills, data science, R&D skills, engineering and technical skills.

With Gurugram-Faridabad developing as a hub for IT and start-up companies, industrialists feel that such legislations will make it difficult to adopt and follow diversity and equal opportunity policies. The companies also feel that it could impact the recruitment strategies as the law will significantly increase the compliance burden and will limit the industry ability to hire people at will.

According to some industry representatives, the jobs which can be highly impacted are

Jobs which industry representatives point out could be highly impacted are customer care representatives, operations team managers, MI analysts, workforce management analysts, payroll specialists, HR executives, transport executives, finance executives, IT executives, facilities executives, call quality analysts, project managers, business analyst, trainers, recruiters, HR business partners, IT specialists, and many more others.