Jharkhand Govt issues new law to provide 75% employment of local candidates in private sector by employer in the State; law to gain effect on such date as the State Government may notify

The Government of Jharkhand has issued the Jharkhand State Employment of Local Candidates in Private Sector Act, 2021 (“Act”) to provide 75% employment of **local candidates in private sector by *employer in the State of Jharkhand and for matters connected therewith and incidental thereto.

Applicability:

The Act extends to the whole of the State of Jharkhand. This Act applies to such shops, establishments, mines, enterprises, industries, companies, societies, Trusts, Limited Liability Partnership Firms, Partnership Firm and any person employing 10 or more persons in private sector and an entity, as may be notified by the Government, from time to time.

The Act will gain effect on such date, as the Government may, by notification in the official Gazette, specify.

Key Takeaways:

1. Compulsory registration:

i. Every employer must, register such employees receiving gross monthly salary or wages not more than Rs. 40,000/- (Forty Thousand Rupees) or as the limit notified by the Government, from time to time, on the designated portal, within 3 months of the Act gaining effect.

Please note, that once designated portal is developed and notified, the employer has to ensure that no person is employed or engaged unless the registration process of all such employees is completed on the designated portal.

Penalty-
If any employer contravenes the requirements mentioned above or of any rules made there under or of any order in writing given there under, he will be guilty of an offence punishable with penalty of an amount of minimum Rs. 25,000/- but which may extend to Rs.1 lakh and if the contravention is still continued after conviction, with a further penalty which may extend to Rs.2,000/- for each day till the time contravention is so continued.

2. Recruitment of local candidates:

i. Every employer must fill up 75% of the total existing vacancies on the date of notification of this Act and subsequent thereto by local candidates with respect to such posts where the gross monthly salary or wages are not more than Rs. 40,000/- (Forty Thousand Rupees) or as the limit notified by the Government, from time to time.

Please note, during the process of employment of Local Candidates attention will be given to the representation of the displaced due to the establishment of the concerned institution, Local Candidates of the concerned district and all classes of the society.

However, no local candidate will be eligible to avail the benefits under this Act unless he/she registers himself/herself on the designated portal.
The employer may claim exemption from the requirement mentioned above, where adequate number of local candidates of the desired skill, qualification or proficiency are not available by applying to the Designated Officer in such form and manner as may be prescribed.

Penalty-
If any employer contravenes the requirements mentioned above or of any rules made there under or of any order in writing given there under, he will be guilty of an offence punishable with penalty of minimum Rs.50,000/- but which may extend to Rs.2 lakh and if the contravention is still continued after conviction, with a further penalty which may extend Rs.5,000/- for each day till the time contravention is so continued.

3. Furnishing of Report:

Every employer has to furnish a quarterly report about vacancies & employment in such format & by such date as may be prescribed on the designated portal.

This report will be examined by the Authorized Officer who will have powers to call for any record, information or document in the possession of any employer for the purposes of verifying the report.

Further, every employer has to render all assistance to the Authorized Officer and in case he fails to do so without any reasonable cause, he shall be guilty of an offence under this Act.

General Penalty:

If there is any contravention by the employer of the provisions of this Act or rules made there under or of any order in writing given under this Act, the employer will be liable to a penalty of a minimum amount of Rs.10,000/-, which may extended up to Rs.50,000/-, and if the contravention continues even after the order of penalty, then further penalty will be imposed which will be Rs.1,000/- shall for each day till the time contravention is so continued.

Penalty for falsification and non-furnishing of records etc.

If any Employer-
(i) produces false records or counterfeits or knowingly makes or produces or uses a false statement, declaration or evidence regarding any document in connection with compliance of any of the provisions of this Act or any rules made there under; or
(ii) makes, gives or delivers knowingly a false return, notice, record or report containing a statement, entry or detail,
he will be punishable with penalty which may extend to Rs.50,000/- for each offence.

Where any person convicted of an offence punishable as mentioned above is again convicted of an offence under the same provision, he will be punishable with penalty of minimum Rs.2 lakhs which may extend to Rs.5 lakhs.

For a detailed read of the Act, please refer to the attached document.
________________
*“Employer” means an Enterprise defined under section 2(e) of the Micro, Small and Medium Enterprises Development Act, 2006 or Industry as an undertaking as defined under section 3 (d) of the Industries (Development and Regulation) Act, 1951 or Company defined under the Companies Act, 2013 (Central Act 18 of 2013) or a Society registered under the Societies Registration Act, 1860 (Central Act 21 of 1860) or a Limited Liability Partnership Firm as defined under the Limited Liability Partnership Act, 2008 (Central Act 6 of 2009) or a Trust as defined under the Indian Trust Act, 1882 (Central Act 2 of 1882) or a Partnership Firm as defined under the Indian Partnership Act, 1932 (Central Act 9 of 1932) or any person employing ten or more persons or such entity, as may be notified by the Government from time to time, for salary, wages or other remuneration for the purpose of manufacturing or providing any service

**local candidate means a candidate who is belonging to the State of Jharkhand and registered on the designated portal as may be notified by Government from time to time.

Source: Government of Jharkhand