The Punjab and Haryana High Court has quashed the Haryana Government law mandating 75 percent reservation in the private sector to state job seekers who have a domicile certificate, deeming it ‘unconstitutional’.

A bench comprising Justice GS Sandhawalia and Justice Harpreet Kaur Jeewan granted permission in response to a set of petitions filed by the Faridabad Industries Association and others in 2021.

Senior advocate Akshay Bhan said the bench quashed the complete act.

The law, Haryana State Employment of Local Candidates Act, 2020, was enacted in March last year. The act provided 75% reservation to local youth in private sector jobs that offer a monthly salary of less than ₹30,000. It covered private companies, societies, trusts, and partnership firms. The law was to remain applicable for 10 years.

The Act was introduced in the State Assembly in 2020, with the background, “The influx of a large number of migrants competing for low-paid jobs places a significant impact on local infrastructure and housing and leads to proliferation of slums, which leads to environmental and health issues. Therefore, giving preference to local candidates in low-paid jobs is socially, economically, and environmentally desirable and in the interests of the general public.”

The court had admitted multiple petitions against the implementation of the act that provided 75% reservation in jobs in the private sector to candidates from the state.

The petitioners argued that the Act amounted to an “unprecedented intrusion” by the government into the fundamental rights of private employers to carry out their business and trade, as provided under Article 19. They said the restrictions on their right were “arbitrary, capricious, excessive, and uncalled for”.

The petitioner further argued that the Act stood contrary to the principles of justice, equality, liberty, and fraternity laid down in the Preamble of the Constitution. They said that the Act represents a “serious assault on the unity and integrity of the country and the idea of a common Indian identity”.

The Khattar government, on the other hand, had argued that the law merely makes a “geographical classification” which is well permitted under the Constitution.

“It is to protect the right to life/livelihood of people domiciled in the state and to protect their health, living condition and their right to employment,” it said.

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