Haryana High Court Strikes Down Reservation Law for Local Residents in Private Sector Jobs

Haryana High Court Strikes Down Reservation Law for Local Residents in Private Sector Jobs

The Punjab and Haryana High Court on Thursday struck down the Haryana State Employment of Local Candidates Act, which mandated 75% reservation for residents of the state in private-sector jobs with a monthly salary or wages of less than ₹30,000. The court said the law was unconstitutional and violated Article 14 of the Constitution, which guarantees equality to all citizens.

The law, which was passed in 2020, had been challenged by several industry bodies, including the Gurgaon Industrial Association. The petitioners argued that the law was discriminatory and would harm the state’s economy by making it difficult for companies to recruit talent.

The court agreed with the petitioners and said that the law was “arbitrary and unreasonable.” The court also said that the law would “impede the free movement of labour” and “create artificial barriers to trade and commerce.”

The decision is a major setback for the Haryana government, which had hoped to use the law to create jobs for local residents. The government is likely to appeal the decision in the Supreme Court.