Article (April-2021)


Highlights of Haryana State Employment of local Candidates Act

Editorial Team

Designation : -   Editorial

Organization : -  Business Manager HR Magazine


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After Andhra Pradesh, the Haryana Govt. has come out with a legislation on securing employment of 75% of local persons in private sector on March 2, the Governor gave his assent to the Bill. It is now known as Haryana Employment of Local candidates Act 2020.


All the companies, societies, trusts, limited liability partnership firms, partnership firms and any person employing 10 or more persons on salary or wage and an entity, as may be notified by the government from time to time shall come under the ambit of this Act.

Where it is not applicable

It shall not be applicable on the central government or state government or any organisation owned by the central or state government.

What employer means

It means a Company registered under the Companies Act, 2013 (Central Act 18 of 2013) or a Society registered under the Haryana Registration and Regulation of Societies Act, 2012 or a Limited Liability Partnership Firm as defined under the Limited Liability Partnership Act, 2008 (Central Act 6 of 2009) or a Trust defined under the Indian Trust Act, 1882 or a Partnership Firm as defined under Indian. Partnership Act, 1932 or any person employing 10 or more persons on salary, wages or other remuneration for the purpose of manufacturing or providing any service or such entity, as may be notified by the government from time to time.

Who is local candidate

A candidate "who is domiciled in State of Haryana" is called a local candidate and shall be able to avail the benefit of this reservation while seeking employment in private sector. The candidate will be required to register himself/herself on a designated portal while seeking benefit under this reservation. Employer will also have to make recruitments through this portal only.

Threshold of employee salary

Every employer shall be required to employ 75 per cent local candidates for the posts where the gross monthly salary or wages are not more than Rs. 50,000 or as notified by the government from time to time.

Employer discretion in selecting person from area

The local candidates may be from any district of Haryana, but the employer shall have the discretion to restrict employment of local candidates from any district to 10 per cent of the total number of local candidates. It will, however, be also the employer's discretion if he wants to recruit above 10 per cent employees from a particular district.

Exemption from 75% recruitment restriction?

Employer can get exemption  from the Act where adequate number of local candidates of a desired skill, qualification or proficiency are not available but only  after  adopting the procedure laid down under the Act  and subject to  satisfaction of the authority.

How to apply for exemption

The employer will have to apply to a Designated Officer (an officer not below the rank of a Deputy Commissioner), in a prescribed format. The Designated Officer shall hold an inquiry and evaluate the attempt made by the employer to recruit local candidates of the desired skill, qualification or proficiency. The Designated Officer may accept/reject the claim of the employer seeking exemption. The Designated Officer may also direct the employer to train local candidates to achieve the desired skill, qualification or proficiency.

Obligations of employer

Every employer will have to furnish a quarterly report on the designated portal and mention details about local candidates employed and appointed during that period.

Powers of the Authority

The reports furnished by the employer will be scrutinised by the authorised officers not below the rank of Sub-Divisional Officers. These officers shall have the powers to call for any record, information or document in possession of any employer for the purposes of verifying the report furnished by them. The officer will also have the right to enter the employer's work premises to examine any record, register, document if the officer has a reason to believe that the employer has committed an offence under this Act or the rules made there under.


The employer can be fined with a minimum Rs. 10,000 to a maximum Rs. 2 lakh once it is established that the employer has committed a violation of provisions of the Act. If the employer continues to commit the violation even after conviction, a penalty of Rs. 1,000 per day till the violation continues shall be imposed. A penalty of Rs. 50,000 shall be levied on the employer who produces false records or counterfeits or knowingly makes/produces a false statement. The penalty, on a subsequent offence, shall not be less than Rs. 2 lakh but may even extend to Rs. 5 lakh.

Liability when offence committed

In case of a company, every Director, Manager, Secretary, Agent or other officers or person concerned with the management shall be deemed guilty of the offence, unless he/she proves that the offence was committed without his knowledge or consent. In case of limited liability partnership firm - all the partners/designated partners shall be held guilty of the offence. In case of Society or Trust - every person who was in charge at the time of commission of offence, or the person who was responsible for conduct of the business of the society at the time of commission of offence shall be deemed guilty of the offence. If it is proved that the offence was committed with the consent or connivance of any Director, Manager, Secretary, Trustee or other officer of the society or trust, all of them shall be deemed guilty.

Limitation of filing complaint

No court shall take cognisance of any offence punishable under this Act unless a complaint is made within six months of the date on which the commission of offence came to the knowledge of authorised or designated officer.