Haryana: Law providing 75% reservation in private jobs put on hold by High Court

In a relief for many private sector companies, the Punjab and Haryana High court on Thursday granted an interim stay on a Haryana government's law providing 75 per cent reservation in private sector jobs for residents of the state. A bench of Justices Ajay Tewari and Pankaj Jain passed the order on a petition filed by an industries association from Faridabad and other associations from Haryana. Haryana's Additional Advocate General Jagbir Singh Malik said the State will be filing a Special Leave Petition (SLP) against the order before the Supreme Court.

The interim order has come as a relief for companies in the state which feel that the Haryana State Employment of Local Candidates Act, 2020 would have a bearing on their future business operations and investment. The Act provides 75 per cent reservation in the private sector to job seekers from the state and came into force from January 15. It applies to jobs offering a maximum gross monthly salary or wages of Rs 30,000. Providing 75 per cent reservation in private sector jobs for state domicile in the private sector was a key poll promise of the Jannayak Janta Party at the time of 2019 assembly polls. After the polls, it formed a government in alliance with the BJP after the saffron party fell short of attaining simple majority on its own.

After the high court granted interim stay, Deputy Chief Minister and JJP leader Dushyant Chautala tweeted, "We will continue to fight for employment opportunities of Haryanvi youth #75%reservation".

We will continue to fight for employment opportunities of Haryanvi youth #75%reservation

— Dushyant Chautala (@Dchautala) February 3, 2022

The Act is applicable to employers of private sector companies, societies, trusts, limited liability partnership firms, partnership firms and any person who employs 10 or more persons on salary, wages or other remuneration for the purpose of manufacturing, carrying on business or rendering any service in Haryana. Advocate Tushar Sharma, counsel for one of the petitioners, said they had challenged the vires of the Act.

"I was representing one of the petitioners-- IMT Manesar Association and Manesar Industrial Welfare Association. We were challenging vires of the Act, we were saying this Act is unconstitutional, discriminatory and violative of fundamental rights of our members and were seeking quashing of the Act. The court admitted the petition," Sharma said over phone. "Seven to eight petitions had been filed challenging this Haryana Act. The Act has been kept in abeyance in a way," he said. Additional AG, Malik, said while defending the law, the state's stand was "that industries are getting various benefits including plots on concessional rates, then why should our youth not get the benefits in employment". Malik said that earlier 900 industrial units of the state had given their consent in favour of the 75 per cent reservation for local youth in private sector jobs.

As the law came into effect last month, Deputy Chief Minister Chautala had said it will open new avenues of employment for thousands of youth. It is a "historic day" for the youth of Haryana, Chautala had said last month referring to the Act coming into effect. In November, Chief Minister Manohar Lal Khattar had said the Act will be made applicable with effect from January 15 this year. Though the government had promised that the Act will apply for all jobs that offer a gross monthly salary up to Rs 50,000, it issued another notification last year specifying that the upper cap had been reduced to Rs 30,000. In March 2021, Haryana Governor Bandaru Dattatreya had given his assent to the Haryana State Employment of Local Candidates Bill, 2020.