Punjab and Haryana High Court Quashes Haryana’s 75% Private Job Reservation Law

November 20, 2023

The Punjab and Haryana High Court, on November 17, declared the Haryana State Employment of Local Candidates Act, 2020, unconstitutional. The law, which mandated 75% reservation in private jobs for Haryana residents, was deemed discriminatory by the court. This article delves into the details of the law, its challenges, and the recent court ruling.

The Struck-Down Law

The Haryana State Employment of Local Candidates Act, 2020, passed by the Haryana Assembly in November 2020, reserved 75% of private sector jobs with a monthly salary below Rs 30,000 for residents of Haryana.
The law came into effect on January 15, 2022, following the Governor’s assent on March 2, 2021.
The Punjab and Haryana High Court declared the law violative of fundamental rights outlined in Part III of the Constitution.

Challenges and Grounds for Opposition

The Faridabad Industries Association and other Haryana-based associations challenged the law, asserting that it violated constitutional rights by promoting a “sons of the soil” policy.
Private sector jobs, argued the petitioners, should be based on skills and merit, with employees having the fundamental right to work anywhere in India.
The Haryana government invoked Article 16(4) of the Constitution, claiming the authority to create such reservations for backward classes.

Provisions of the Haryana Law

The law covered various entities, including companies, societies, trusts, and large individual employers, but excluded central or state governments.
Local candidates, domiciled in Haryana, could avail themselves of the reservation by registering on a designated online portal.
Employers were mandated to make recruitments exclusively through this portal, with a complex exemption application process.

High Court Ruling

The court criticized Sections 6 and 8 of the Act, stating that they amounted to an “Inspector Raj” and imposed undue control on private employers.
Sections 6 and 8 were considered excessive, leading to an infringement on the right to carry on occupation, trade, or business under Article 19(1)(g) of the Constitution.
The court highlighted that discriminating against individuals based on their state of origin was unconstitutional.

Current Status and Future Steps

The Supreme Court had initially stayed the law on February 3, 2022, but later set aside the stay, directing the High Court to decide on the law’s validity within four weeks.
Despite the High Court’s ruling against the law, Deputy Chief Minister Dushyant Chautala expressed the Haryana government’s intent to challenge the decision in the Supreme Court.

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