The State government will investigate violations of its norm to provide 75 per cent reservation for locals in private companies operating in Jharkhand. If any irregularities are found in this regard the government will initiate strict action on the concerned firm, said Labour and Employment Minister Sanjay Prasad Yadav in State Assembly during Budget Session today.
Yadav was replying to a query raised by JLKM party MLA Jairam Mahto, who expressed concerns about the enforcement of the 75% reservation policy for local candidates in private companies in the State. He highlighted that, despite the state government's directives, private firms have not been complying with the rule. Mahto questioned whether the government planned to take action against companies violating this directive.
“Approximately 2.5 lakh individuals are employed in private companies in Jharkhand, but only 53,000 of them are Jharkhandis. These figures come from official government records. Although the High Court has put a stay on the matter, companies were failing to follow the government’s orders even before the court’s intervention,” he said in the House.
Mahto further urged the government to clarify its stance on taking action against non-compliant companies. In response, Labour Minister Sanjay Prasad Yadav assured that the government would investigate the issue and take strict measures against any firm found violating the order.
Following this, Mahto asked about the government's course of action after the High Court's ruling and the strategies it planned to implement moving forward. Minister Yadav responded that the government would act in the state’s best interest and frame policies accordingly.
Jairam Mahto also raised concerns about whether outsourcing firms should be classified as private companies under the reservation policy. He pointed out that while private companies employ nearly two lakh non-Jharkhandis, only 53,000 local residents have secured jobs in the sector.
MLA Naveen Jaiswal also sought clarification on whether outsourcing companies fall under the private sector category and questioned the measures in place to ensure 75% reservation for Jharkhandi youth.
Minister Sudivya Sonu responded that implementing such laws takes time and cannot happen instantly. He stated that companies had been adhering to the policy before the High Court’s stay order. He also clarified that outsourcing companies are indeed considered private companies. Supporting this statement, Labour Minister Sanjay Prasad Yadav assured that any officials found to have provided misleading reports on the matter would face action.
The labour minister then detailed the Employment of Local Candidates in the Private Sector of Jharkhand State Act, 2021, which was officially published in the Jharkhand Gazette on January 4, 2022.
Under Clause 4(1) of the Act, once implemented, all employers are required to reserve 75 per cent of jobs for local candidates in roles offering a gross monthly salary of up to Rs 40,000 or any other limit set by the government. This provision applies to both existing vacancies at the time of notification and any new job openings thereafter.
Currently, the Employment Act, 2021, along with the Rules, 2022, is being enforced, and a dedicated portal (www.jharniyojan.jharkhand.gov.in) has been created for implementation. As of February 28, 2025, 7,470 establishments have registered on this platform.
However, the Act's enforcement is temporarily on hold due to an interim stay imposed by the Jharkhand High Court in case number WPC-5688/2024, issued on December 11, 2024. The next hearing on this matter is scheduled for March 26, 2025.
Despite this legal stay, the Jharkhand Private Sector Employment of Local Candidates Rules, 2022, has been in effect since September 12, 2022. The government is awaiting the court's decision before taking any further action.
