75% Job Quota For Locals Will Stay In Gurgaon, Haryana; But No Action Against Companies

The state argued the law would “ensure people do not have to move elsewhere (for jobs)”.

The Supreme Court on Wednesday lifted an interim stay imposed by the Punjab and Haryana High Court on a Haryana law providing 75% reservation in private sector jobs to local candidates.

No Actions Against Employers Yet

It set aside the February 3 interim order of the Punjab and Haryana High Court staying the “The Haryana State Employment of Local Candidates Act, 2020”, saying that the latter “has not given sufficient reasons for staying the legislation”.

The Haryana government has been told to refrain from taking coercive steps against private sector employers who opt not to follow the controversial new law at this time.

Earlier this month the Haryana government took to the Supreme Court against a High Court order that called the quota unsustainable and against natural justice.

State Protests

The state argued that the order was passed too quickly, just after a 90-second hearing and that its lawyer was not heard.

The Supreme Court today asked the High Court to hear the matter fully and give its verdict in four weeks.

“In the meanwhile, Haryana is directed not to take coercive action against employers”,  a bench of Justice L Nageswara Rao and PS Narasimha said.

During the hearing, Dushyant Dave in favor of 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.

Implications

He continued by saying that private hospitals could be affected because many employed nurses come from Kerala.

He said 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.”

The state argued the law would “ensure people do not have to move elsewhere (for jobs)” and claimed it would also solve the problem of slums.

The Haryana State Employment of Local Candidates Act, 2020, was passed in November last year, and applies to jobs offering a maximum gross monthly salary or wages of Rs 30,000.

The Act

It came into effect January 15, after which Deputy Chief Minister Dushyant Chautala declared it would open new avenues of employment for thousands of young men and women in the state.

The Haryana State Employment of Local Candidates Act, 2020 provides 75% reservation in the private sector to job seekers who are “domiciled in State of Haryana”. 

The law covers private companies, societies, trusts and partnership firms and applies to jobs that offer a maximum gross monthly salary or wages of up to Rs 30,000. 

Central or state governments, or any organisation owned by these governments are outside the ambit of the Act.

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