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Polity & Governance
Mahesh

19/11/23 17:20 PM IST

HC has struck down Haryana’s private sector quota

In News
  • The Punjab and Haryana High Court  quashed a law passed by the Haryana government in 2020 that provided 75% reservation in private jobs to residents of the state.
Reservation law
  • The Bill passed by the Haryana Assembly in November 2020 reserved 75% of jobs in the private sector that offered a monthly salary of less than Rs 30,000 (originally Rs 50,000) for residents of Haryana.
  • The Bill received the Governor’s assent on March 2, 2021, and came into effect on January 15, 2022.
  • Recently, Andhra Pradesh Assembly had passed The Andhra Pradesh Employment of Local Candidates in the Industries/Factories Bill, 2019, reserving three-fourths of jobs for local candidates within three years of the commencement of the Act.
  • The law was challenged in the Andhra Pradesh High Court, which observed that “it may be unconstitutional”. However, the challenge is yet to be heard on merits.
  • All companies, societies, trusts, limited liability partnership firms, partnership firms, and large individual employers were covered under the Act. Any person employing 10 or more people on salary, wages, or other remuneration for manufacturing or providing any service, as well as any entity that may be notified by the government, were included.
  • However, central or state governments or organisations owned by them were kept outside the ambit of the Act.
  • According to the law, a candidate “domiciled in State of Haryana”, called a “local candidate”, could avail of the reservation after registering themselves on a designated online portal. Employers were required to make recruitments only through this portal.
Grounds for Challenge
  • The Faridabad Industries Association and other Haryana-based associations went to court, contending that Haryana wanted to create reservations in the private sector by introducing a policy of “sons of the soil”, which was an infringement of the constitutional rights of employers.
  • The petitioners argued that private sector jobs are purely based on skills and an analytical bent of mind, and employees have a fundamental right to work in any part of India.
  • Therefore, they argued, “The act of the respondent (government) forcing the employers to employ local candidates in private sector vide this impugned Act is the violation of the federal structure framed by the Constitution of India, whereby the government cannot act contrary to public interest and cannot benefit one class”.
  • The Haryana government argued that it had the power to create such reservations under Article 16(4) of the Constitution, which says that the right to equality in public employment does not prevent the State from “making any provision for the reservation of appointments or posts in favour of any backward class of citizens which, in the opinion of the State, is not adequately represented in the services under the State”.
Judgement by HC
  • The court noted that Section 6 — which required employers to submit quarterly reports with details of local candidates employed and appointed — and Section 8 — under which authorised officers could call for documents or verification to ensure the law was being implemented — of the Act amounted to “Inspector Raj”, and that private employers were being put under the State’s anvil on whom to employ.
  • Also, the bar, under Section 20 of the Act, on legal proceedings against any authorised or designated officer acting in “good faith”, tied the employer’s hands, the court said.
  • The court ruled that the state’s action amounted to exercising “absolute control over a private employer,” which is “forbidden for public employment.”
  • The restrictions were “gross to the extent that a person’s right to carry on occupation, trade, or business” under Article 19(1)(g) of the Constitution was being impaired, the court said.
  • Also, the court said, the state “cannot as such discriminate against the individuals on account of the fact that they do not belong to a certain State”.
Source- Indian Express

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