Issues with Haryana Reservation Law – UPSC GS2

What are the provisions of the Haryana State Employment of Local Candidates Act?
It provides for a 75% job quota for local people in private sector jobs which offer a salary of  Rs. 30,000 (earlier 50k) a month.  There is a modification in the act as domicile stipulation reduced from 15 years to five years
What is the impact of the Haryana State Employment of Local Candidates Act?
  • It violates the constitutional right of citizens to reside in any part of the country and practise any occupation or business.
  • The Act creates barriers for businesses by attaching severe monetary penalties for alleged non-compliance.
  • It will diminish opportunities for small firms as they have to meet Rs. 30,000 thresholds to keep non-local employees on their books.
  • Many industries will seek to move to neighbouring Delhi and UP states owing to restrictions implied by the act. This will have a negative impact on the revenue of the state.
Legal Timeline:
  • Punjab and Haryana High Court stayed its implementation.
  • SC quashed above stay order.
Supreme Court’s view:
  • The Supreme Court Bench set aside the stay order of the High Court on the ground that the stay order did not give “sufficient reasons”.
  • The Bench observed that every law passed by the legislature was presumed to be legal.
  • An order of stay on the implementation by a court of law should be reasoned.
  • The SC requested the High Court to decide on the writ petition filed by industrialists within four weeks.
  • The Supreme Court ordered the State government not to take any “coercive steps” against employers violating the Act.

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