Nasscom, tech leaders express concerns on Karnataka employment bill

BENGALURU: Software services industry lobby group

Nasscom

on Wednesday expressed concerns about the recently drafted Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024 that caps employment for non-locals in private companies in the state.
The group has sought an urgent meeting for industry representatives with state authorities to discuss the concerns and prevent Karnataka’s “progress from being derailed,” it said in a statement.

“Restrictions could force companies to relocate as local skilled talent becomes scarce. In today’s highly competitive landscape, knowledge led businesses will locate where talent is as attracting skilled workers is crucial for success,” the statement said.
The bill proposes that all industries, factories, and other establishments in the state reserve 50% of jobs in managerial roles nad 70% in non-managerial jobs for local candidates. It also stipulates that candidates not possessing a secondary school certificate with Kannada as a language will need to pass a Kannada proficiency test.

The state government is expected to table the bill within a week.
The bill’s provisions threaten to reverse progress, drive away companies, and stifle startups in Karnataka especially at a time when more

global firms

(GCCs) are looking to invest in the state. At the same time, the restrictions could force companies to relocate as local skilled talent becomes scarce.
The statement from Nasscom said that the technology sector contributes to 25% of Karnataka’s gross domestic product and also that the state houses a quarter of India’s digital talent with over 11,000 start-ups and 30% of the total global capability centres (GCC).

“It’s deeply disturbing to see this kind of bill which will not only hamper the growth of the industry, impact jobs and the global brand for the state. Nasscom members are seriously concerned about the provisions of this bill and urge the state government to withdraw the bill,” the statement added.
Technology industry

veterans based in Karnataka also took to social media to voice their opinions on the bill. Biocon founder Kiran Mazumdar-Shaw suggested that there be caveats to exempt highly skilled recruitment from the bill’s provisions.

Separately, Infosys cofounder Mohandas Pai said that the bill should be junked. “It is discriminatory, regressive and against the constitution,” he said.