High Court Strikes Down Haryana Act for 75% Reservation in Private Sector Jobs for Local Residents
Manas Dasgupta
NEW DELHI, Nov 17: The Punjab and Haryana High Court on Friday struck down as “unconstitutional” the controversial Haryana law mandating 75% reservation for residents of the state in private-sector jobs.
“The Haryana State Employment of Local Candidates Act,” which underwent several changes after it was passed in 2020, provided for 75% of private-sector jobs with a monthly salary or wages of less than ₹ 30,000 being reserved for people with a resident or domicile certificate. The domicile requirement had been brought down from 15 years to five.
With less than a year to go for the Assembly elections in Haryana, the decision is being seen as a big setback for the Manohar Lal Khattar-led government, which had brought in the law with an eye on consolidating the votes of local communities, especially the Jat community. The state is likely to appeal the judgment in the Supreme Court.
In February, 2022, the Supreme Court had lifted the interim stay imposed by the Punjab and Haryana High Court on the Haryana’s 75 per cent reservation law but had directed the Haryana government to refrain from taking coercive steps against private sector employers opting not to follow the contentious new law, at this time. The ML Khattar government had approached the Supreme Court earlier the same month against the stay imposed by the High Court that called the quota unsustainable and against natural justice.
The state had argued in the Supreme Court that High Court issued the order after only a 90-second hearing and that its lawyer was not heard. The apex court while lifting the stay had directed the High Court to hear the matter fully and rule in four weeks. “We do not intend to deal with merits of matter… request High Court to decide expeditiously, and not later than four weeks. Parties are directed not to seek adjournment…” a bench of Justice L Nageswara Rao and PS Narasimha had said.
“In the meanwhile, Haryana is directed not to take coercive action against employers. The impugned order passed by the High Court is set aside as the High Court has not given sufficient reasons…” During the hearing, Dushyant Dave, arguing for the Faridabad Industries Association, said the law would have “far-reaching implications”, including the threat of small private sector firms being forced to shut due to lack of sufficient candidates for reserved jobs.
The Act, which was passed by the Haryana Assembly in November 2020 and had received the governor’s assent in March 2021, was seen as the brainchild of the Jannayak Janata Party, which is an ally of the BJP in the state, and whose leader, Dushyant Chautala, serves as the deputy chief minister. Providing the reservation was one of the key promises made by Mr Chautala ahead of the 2019 Assembly elections.
While introducing the bill, the state government had said the “influx of migrants competing for low-paid jobs places a significant impact on local infrastructure and housing, and leads to proliferation of slums.” Justifying bringing in the bill, it had said giving preference to local candidates in low-paid jobs was “socially, economically and environmentally desirable” and “in the interests of the general public.”
Mr Dave had also argued that private hospitals could be affected because many employed nurses from Kerala. He pointed out that the Haryana government’s claim – that 900 firms had registered under the law – “means nothing” because there were over 45,000 private companies in the state. Shyam Divan, appearing for the Manesar Industries Welfare Association, said “industries will suffer… this affects the idea of India as an economic unit.”
Represented by Solicitor-General Tushar Mehta, the state had argued the law would “ensure people do not have to move elsewhere (for jobs)” and claimed it would also solve the problem of slums.
