India: Court strikes down Haryana's 75% job reservation law for locals in private sector

India's Punjab and Haryana High Court declared as unconstitutional the Haryana government's 2020 law, which mandated a 75 per cent job reservation for locals in the private sector. The court was ruling on legislative competence and reservation policy in Haryana's private sector.

The court, composed of Justice GS Sandhawalia and Justice Harpreet Kaur Jeewan, addressed key legal aspects in response to multiple petitions challenging the Haryana government's law.

“The law (the Haryana State Employment of Local Candidates Act, 2020) is unconstitutional and violative of the part-III of the Constitution,” the bench said.

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It deliberated on the state's legislative competence to enact the law under Article 35 r/w Entry 81 of List 1 of the Seventh Schedule. The court also examined whether a state can implement a reservation policy in the private sector.

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Court’s verdict on reasonable restriction

The ruling also considered whether the Haryana government's Act constituted a reasonable restriction and assessed the maintainability of the writ petitions.

The court sided with the petitioners on all four issues, deeming the law unconstitutional and in violation of part-III of the Constitution.

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Introduced in 2020, the Act attributed the influx of migrants to Haryana for low-paid jobs as a cause for adverse effects on local infrastructure, housing, and environmental conditions. It argued that prioritising local candidates for such jobs was "socially, economically, and environmentally" beneficial.

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However, petitioners contended that the law interfered with the fundamental rights of private employers under Article 19, characterising the restrictions as "arbitrary, capricious, and excessive".

Moreover, they asserted that the Act contradicted the constitutional principles of "justice, equality, liberty, and fraternity", posing a threat to the unity and integrity of the nation.

While a detailed order is pending, the High Court's decision signaled a crucial development in the ongoing debate over regional job reservations in the private sector.

(With inputs from agencies)