The Jharkhand government has intensified its crackdown on private companies that are not adhering to the law mandating 75% job reservation for residents. This move comes in response to a lackadaisical approach by many firms in employing local talent despite the government's efforts to boost local employment.
Recently, the government issued notices to 3,909 private sector companies, collecting fines amounting to Rs 20.65 lakh from those found non-compliant. There are 7,083 registered employers in the state, but only 11,106 local people have been employed so far, highlighting a significant gap between policy and practice.
The Employment of Local Candidates in Private Sectors of Jharkhand Act, 2021, and its subsequent Rules, 2022, have been in effect since September 12, 2022.
This law requires all private companies, shops, and establishments with 10 or more employees to reserve 75% of jobs for local candidates earning up to Rs 40,000 per month.
The government has created a dedicated portal managed by the Labour and Employment Department to monitor compliance. On this portal, companies must provide complete details of their personnel, and workers must upload their local certificates.
The state government initiated action through the Labour Department in September 2021 to enforce these provisions and ensure that locals benefit from job opportunities in the private sector. The government's efforts aim to maximise local employment, ensuring that the economic benefits of private sector growth are shared with the state's residents.
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