The Haryana State Employment of Local Candidates Bill, 2020 | MCA signed a MOU with CBIC

The Governor of Haryana has given his assent on March 2, 2021 to The Haryana State Employment of Local Candidates Bill, 2020 (hereinafter referred to as the “Bill”), which has been passed by the Legislative Assembly of Haryana Government on November 5, 2020. The Bill provides 75% reservation in the private sector to job seekers from the State of Haryana.

The Act applies to every Company, Society, Trust, Partnership Firm, LLP or any Individual employing 10 (ten) or more personnel. Following are the important features of the Bill:-

• Any Company, LLP, Partnership Firm or Individual employing 10 (ten) or more personnel (“employer”) on the monthly salary of Rs. 50,000/- (Rs. Fifty Thousand Only) or less.
• Every employer would need to register every employee receiving gross monthly salary or wages Rs. 50,000/- or less, within 3 months from the enforcement date of this Bill.
• Local candidate is defined as a person domiciled in the State of Haryana (a person either born in Haryana or has continuously lived in Haryana for a period of 15 years can apply for domicile in Haryana).
• Every employer shall employ 75% of the local candidates with respect to such posts where monthly gross salary is Rs. 50,000/- or less.
• Employer may claim for exemption to designated officer (as defined in Bill) in case local candidates do not meet the qualification required.
• Penalties under the Bill shall lead to imposition of a fine within the range of Rs. 25,000/- to Rs. 1,00,000/-. If the employer continues to commit the violation even after conviction, a penalty within the range of Rs. 100/- to Rs. 1,000/- per day till the violation continues shall be imposed.

The effective date of the Bill is yet to be notified by the State Government and the rules are yet to be finalized which may bring more clarity on compliances required.

The complete text of the Bill may be viewed at below link:

https://bit.ly/3c81nId

News from the desk of Ministry of Corporate Affairs

Ministry of Corporate Affairs (MCA) has signed a Memorandum of Understanding (MOU) with Central Board of Indirect Taxes and Customs (CBIC), Ministry of Finance, to facilitate the sharing of data and information between MCA and CBIC on an automatic and regular basis. The purpose of the MOU is to ensure seamless linkage between MCA and CBIC from regulatory perspective.

The data sharing arrangement gains significance in light of the development of MCA21 Version 3 which will utilize state of the art technology for enhancing the ease of doing business in India and improve the regulatory enforcement and similar steps by CBIC like the launch of ADVAIT (Advanced Analytics in Indirect Taxation) a 360-degree taxpayer profiling tool. It will enable sharing of specific information such as details of the Bill of Entry (Imports), Shipping Bill (Exports) summary from CBIC and financial statements filed with the Registrar by corporates, returns of allotment of shares.

The MoU comes into force from the date it was signed i.e. 25^th day of February, 2021 and is an ongoing initiative of MCA and CBIC, who are already collaborating through various existing mechanisms.

The copy of the MOU is available at below link:

https://bit.ly/3ciC6Lx

Last Updated: 05-03-2021

Article contributed by:

Munesh Gaur

Senior Associate – Legal

MBG Corporate Services

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