News-CRUX-10     23rd November 2023        
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Context: The Punjab and Haryana High Court recently quashed a law enacted by the Haryana government in 2021 that guaranteed 75% reservation to locals in private sector jobs in Haryana.

Haryana’s Employment Reservation Law

  • About: Haryana Assembly passed the Haryana State Employment of Local Candidates Bill which made it mandatory for employers in the State to reserve 75% of jobs paying a monthly salary of less than ₹30,000 (originally ₹50,000) for local residents of the State.

oThe Bill received the Governor’s assent in March, 2021, and came into effect in January last year.

  • Local Candidate: A ‘local candidate’ has been defined under the law as anyone domiciled in Haryana for the past five years.
  • Applicable: all private entities in the State including companies, trusts, societies, partnerships, and limited liability partnerships.

oIt also covers any person employing 10 or more persons for the purpose of manufacturing or providing any service. 

Why was the Law Challenged?

  • It violates Article 19 of the Constitution, which guarantees the right to freedom, including to reside and settle in any part of the Indian territory and practice any profession, business or trade.
  • They also contended that the law was an infringement of Article 14 (equality before the law) and Article 15, which prohibits discrimination on various grounds such as religion, race, caste, sex or place of birth.

Other States enacted such laws

  • States such as Maharashtra, Karnataka, Andhra Pradesh and Madhya Pradesh have enacted laws providing reservations for their local residents in the private sector.
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