Labor Employment Training and Factories Department, Andhra Pradesh (“Department), through a notification has issued the Andhra Pradesh Employment of Local Candidates in the Industries/Factories Rules, 2019.
BACKGROUND:
A Bill had been introduced by the Department to ensure employment of 75% of local candidates in the state.
Subsequently, the Andhra Pradesh Employment of Local Candidates in the Industries/Factories Rules, 2019 was passed in State on August 17, 2019. The Department, by a further notification declared August 22, 2019 as the date of which the Act would gain force.
Now, in congruency with the Act, the Department has, in a notification dated October 14, 2019, published the Andhra Pradesh Employment of Local Candidates in the Industries/Factories Rules, 2019.
KEY HIGHLIGHTS:
- Any person who has been residing in Andhra Pradesh for more than 10 years will be eligible to claim local status after procuring certain documents, essential for proving residency. In the event of an individual where he is unable to procure any personal document to prove residency, if he/she is residing with his family for a term of 10 years then by procuring their proof of residence, an individual can avail the claim under the Rules. Certification of concerned Tahsildar will suffice individuals claim under the Rules.
- Any employer/occupier/ owner of any industry or a factory or a joint venture or Public-Private Partnership Mode, must make sure the fulfillment of domicile requirements of any local candidates before employing him.
- All employers at the stage of applying for Statutory Permissions shall inform the man power with skills requirements to the Nodal Agency. Nodal Agency after assessing the availability of workers will allocate local workers for the designated work.
- All existing industries shall furnish every details of existing man power, number of local workers employed within 30 days of the commencement of the Rules. Further, the industries should submit a plan of action to comply with the provisions of the Act to meet minimum 75 percent local employment criteria within 3 years from the commencement of the Rules.
- When the employer/occupier/owner of an industry or a factory or a joint venture or a project undertaken on a public- private partnership commences recruitment, the respective village or town or city residents would get the first preference for recruitment. In case of non- availability of a person with suitable skill in that area then the employer can recruit person from the Mandal, District, Zone and the State, in the order.
- Exemption from the application of the Rules or Act can be applied by any employer, shall be disposed of within 15 days.
- Exemption can be granted for a period of 1 years generally and if any employer applies for exemption of more than a year then shall submit detailed report of the circumstances that necessitates such exemption to the Government.
- Every employer/ Occupier/ Owner is liable to furnish the concerned Nodal Agency a Quarterly Return in Prescribed format (LER 1) within 30 days after the end of each quarter every year.
- Every employer should maintain a report of local status for each employee.
- Any contravention of the provision of the Rules can lead to a fine of Rs 25,000/- for the first offence and which might to extend to Rs 50,000 for every subsequent offence.
- In a calendar year if any factory is found to be not maintaining the provision of 75 percent employment of Local residents then the Government can impose appropriate penalty including of rescission of License.
Source: Labor Employment Training and Factories Department, Andhra Pradesh
