A two-justice bench of the Punjab and Haryana High Court on Thursday ordered an interim stay on the Haryana government's recent law that provides for 75 per cent reservation in private sector jobs for natives of the state.
The Haryana State Employment of Local Candidates Act, 2020, went into effect earlier this month. The act specifies reservation of jobs for local residents with a maximum monthly salary limit of Rs 30,000.
The bench of Justices Ajay Tewari and Pankaj Jain issued the stay on a writ petition challenging the law. Solicitor General Tushar Mehta had argued on behalf of the Haryana government.
The plea was moved by the Faridabad Industries Association (FIA), an industries’ body in north India. FIA argued the act was unconstitutional and violated Articles 14,15 and 19 of the Constitution and was also contrary to the idea of common citizenship.
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Industry associations had warned the law could trigger an exodus of multinational companies. CII had also cautioned against the law, stating reservation would affect “productivity and industry competitiveness”.
“The state government had last year said the said Act will be 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,” NDTV reported.
