Andhra Pradesh : 75% Jobs to be reserved for locals across the State
Andhra Pradesh Employment of Local Candidates in Industries/Factories Act, 2019 passed by the State Assembly
- Compliance in this regard to be rolled out within 3 years from the date of the commencement of the above stated Act
- Non-Compliant Companies to be penalised – Quantum of penalty to be fixed by the Rules framed under the Act
- New Act also provides that if locals with necessary skills are not available, then Companies will have to train the locals in association with the local government and then hire them
- Quarterly Compliance Report regarding hiring locals to be filed by companies with the Local Nodal Authorities under the Act
- Factories listed in the First Schedule of the Factories Act to be exempted from the application of this Act.
Compliance Takeaway: New Law passed by the Andhra Government has left no room for Companies to escape hiring locals for 75% of the total jobs in an establishment. Companies in the state must prepare a plan to roll out timely compliance in a phased manner and to establish a training mechanism in association with the local government as envisaged in the law