Hybrid working model helps IT companies escape the Haryana job reservation law

The Haryana government recently implemented a law mandating 75% of jobs in the private sector under the ₹ 50,000 salary bracket to be reserved for locals. Gurugram is the hub of IT companies and it is believed that the decision might affect the business-friendly image of Haryana.

On the contrary, it seems that IT companies and IT-enabled services companies will not lose much with this new law. The Economic Times reported that the majority of employees working at these salary levels in the IT and ITeS companies are outside the state. With the arrival of the pandemic, most of the companies shifted to the WFH model and IT companies are still following this trend.

Sangeeta Gupta, Senior Vice-President, Nasscom told the publication that IT and ITeS companies are following the remote working model. Companies can hire new workers and can even move the workers to different cities as a substantial proportion of employees are in a hybrid model and the WFH model is likely to continue for some time.

As per the experts, the new law will have a minor effect on these companies, mostly on the entry-level talent. But the companies are in full control of not assigning a particular location to an employee while hiring. The WFH era has clearly exempted the companies from the new law.

Lohit Bhatia, President, Indian Staffing Federation told ET that the sudden implementation of the law without giving any calibrated time to the companies can force the companies to move out of the state. The law seems to be affecting the business-friendly image of the state badly.

The IT and ITeS companies are looking to hire junior-level talent for other locations as it would exempt them from falling under the ambit of the job reservation law.