Haryana State Employment of Local Candidates Bill

• IAS NEXT, Lucknow
• 09, Nov 2021

Reference News:

Haryana government has ordered that the law (the Haryana State Employment of Local Candidates Bill) providing for 75% reservation for locals in private sector jobs come into force from January 15, 2022.

Highlights of the law:

• The law provides for 75% reservation in private sector jobs to those having a resident certificate (domicile).
• The law will be applicable for a period of 10 years.
• Jobs with a gross monthly salary of not more than ₹30,000 will be up for hiring from among local candidates.

Rationale behind the law:

To create a harmonious environment for industry as well as the youth along with creating the right balance between the progress of industries and the economy.

Concerns over the bill:

• It could lead to multinational firms moving out of the state.
• Reservation affects productivity and industry competitiveness.

What are the legal issues in such laws?

1. The question of domicile reservation in jobs: While domicile quotas in education are fairly common, courts have been reluctant in expanding this to public employment. It raises questions relating to the fundamental right to equality of citizens.
2. The issue of forcing the private sector to comply with reservations in employment. For mandating reservation in public employment, the state draws its power from Article 16(4) of the Constitution. But, the Constitution has no manifest provision for private employment from which the state draws the power to make laws mandating reservation.
3. It may not be able to withstand judicial scrutiny on the touchstone of Article 19(1)(g).