Karnataka Mandates 5% Disabled Quota in Private Jobs

Karnataka Labour Department is preparing a comprehensive Bill to mandate up to a 5% job reservation for Persons with Disabilities (PwDs) in private sector companies across the state.

If enacted, this legislation will make Karnataka the first state in India to legally enforce such a quota in private employment, shifting the current paradigm from voluntary incentives to mandatory compliance.

The Policy Proposal in Karnataka and Legislative Journey

The proposed legislation is outlined in a concept note prepared by the Labour Department and is expected to be presented to the State Cabinet shortly.

Following cabinet approval, officials anticipate tabling the Bill in the legislature, potentially during the upcoming Winter Session.

Labour Minister Santosh Lad emphasized the pioneering nature of the initiative, stating that it represents one of the “many firsts from Karnataka at the national level.”

He expressed a preference for calling the beneficiaries “persons with determination.”

The proposal is multifaceted, including a parallel provision for up to 10% reservation for differently-abled children in educational institutions, aligning with their constitutional Right to Education.

The core objective is to integrate PwDs, estimated to number over 20 lakh in the state, into the mainstream economy, thereby granting them their fundamental rights to equality and livelihood.

Bridging the Gap: Legal Compliance and International Standards

Currently, the central legislation, the Rights of Persons with Disabilities Act, 2016 (RPwD Act), mandates a minimum 4% reservation only in government establishments.

For the private sector, the RPwD Act merely empowers state governments to provide incentives for employers to ensure at least 5% of their workforce comprises PwDs, without making the quota mandatory.

By introducing a legally binding quota, Karnataka aims to address the historically “patchy” rollout of the Central Act, which has slowed the integration of PwDs into labor markets.

Crucially, the Labour Department believes this new state Bill will allow Karnataka to become the first Indian state to fully comply with the standards set by the United Nations Convention on the Rights of Persons with Disabilities (UNCRPD), which India ratified in 2007.

Many see the move as a fulfillment of constitutional mandates, including Article 14 (Equality), Article 16 (Equal opportunity in public employment, and allowance for quota for disadvantaged groups), and Article 41 (Right to work, education, and public assistance).

Significant Economic and Social Benefits

The rationale behind the mandatory quota is strongly supported by economic data.

The concept note highlights that including PwDs in the workforce can significantly boost the economy, potentially adding between 3% to 5% to the State’s Gross Domestic Product (GDP).

This economic growth is projected to come from increased productivity and reduced dependency ratios.

Furthermore, the policy draws on global studies, such as those by the International Labour Organisation (ILO), which indicate that companies with inclusive hiring policies benefit substantially.

These companies often report up to 30% higher employee retention rates and demonstrate increased innovation, showcasing that inclusion is not just a social measure but a sound business strategy.

Karnataka PwDs Quota: Enforcement and Corporate Obligations

To ensure the policy’s effectiveness and prevent tokenism or discrimination, the proposed Bill outlines strict compliance mechanisms for private companies.

The legislation will mandate private employers to end discrimination, actively implement non-discriminatory employment practices, and publish accessible equal employment opportunity policiesdirectly on their websites.

Officials from the Department of Labour, Factories and Boilers, and other line departments will carry out enforcement, acting as designated inspectors-cum-facilitators.

These officials will monitor compliance and ensure that private establishments adhere to the new 5% threshold, thereby guaranteeing a measurable and sustainable increase in PwD representation across the state’s diverse industries.

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