New hiring restrictions in Haryana met with criticisms from investors
Haryana’s state government has adopted new rules that restrict companies from hiring workers from other states, resulting in limited labor options for investors.
The rule requires that 75 per cent of employees should be Haryana residents of at least five years’ standing. It was met with criticisms, with companies saying that they “need flexibility to choose the most suitable workers for their operations.”
Some critics even stated that these hiring guidelines violates India’s constitution, which forbids discrimination based on birthplace and guarantees the right to free movement.
According to Mahesh Vyas, managing director of the Centre for Monitoring the Indian Economy, this hiring restriction would be “very counterproductive” and likely to drive new investment away from states that adopt them.”
“Such rules reflect a larger malaise in the Indian economy, which is that it is not generating enough jobs. Once you do not generate jobs, there are political pressures on local government to do something about it,” added Vyas.
