Bengaluru, Sept. 30 -- Karnataka has introduced penalties for micro, small and medium enterprises (MSMEs) that terminate employees within three months of receiving job-creation incentives under the Udyoga Nidhi scheme, according to a government order.

Under the scheme, eligible MSMEs will receive a monthly incentive of Rs 2,500 per job for two years for creating employment in 11 identified backward districts.

The government estimates an expenditure of around Rs 300 crore and aims to support the creation of one lakh jobs, reported Deccan Herald.

Recovery Provision For Early Termination

If an enterprise terminates an employee within three months of receiving the incentive, the government can recover the amount paid along with interest....