Karnataka Government pauses controversial job reservation bill amid huge backlash

In response to warnings from top CEOs and industry bodies about the proposed job reservation law in the private sector, the Karnataka government announced on Wednesday that the Bill has been withheld. The state Cabinet plans to discuss it comprehensively in their next meeting.

The Karnataka Cabinet had approved ‘The Karnataka State Employment of Local Candidates in the Industries, Factories, and Other Establishments Bill, 2024’ on Tuesday. This Bill mandates a 75% reservation in non-management jobs and 50% in management jobs for “local candidates.”

Biocon founder Kiran Mazumdar Shaw suggested that the proposed law should “exempt highly skilled recruitment from this policy.” Nasscom, an industry body representing software and service companies, warned that the Bill’s provisions would “stifle startups” and “force companies to relocate as local skilled talent becomes scarce.” Venture capitalist Mohandas Pai called the Bill ‘discriminatory,’ ‘regressive,’ and ‘fascist’ on social media.

Following this adverse feedback, the state government decided to review the Bill and its provisions. “The draft Bill intended to provide reservations for Kannadigas in private sector companies, industries, and enterprises is still in the preparation stage. A comprehensive discussion will be held in the next cabinet meeting to make a final decision,” said Chief Minister Siddaramaiah on social media platform X.

State Industries Minister MB Patil assured that the Bill is “withheld until further consultations and due diligence” and advised industry leaders not to panic. He, along with Information Technology and Bio-Technology Minister Priyank Kharge, assured the industry that “wider consultations” would be held before passing the Bill.