The Punjab and Haryana High Court has quashed the Haryana Government law mandating 75% reservation in the private sector for locals of the state, deeming it unconstitutional. The Haryana State Employment of Local Candidates Act, 2020, which came into effect on January 15, 2022, provided for 75% reservation to local youngsters in private sector jobs. The law covered private companies, societies, trusts, and partnership firms. The court said that the Haryana State Employment of Local Candidates Act, 2020 is unconstitutional and that the act is violative of Part 3 of the constitution. One of the petitioners, the Gurgaon Industrial Association, argued that Haryanas attempt to implement a Sons of the Soil policy in the private sector encroached upon the constitutional rights of employers. The petitioner asserted that the states imposition of employing local candidates in the private sector, as per the impugned Act, violated the federal structure outlined in the Constitution of India. The contention highlighted that jobs in the private sector rely solely on the skills and cognitive capabilities of employees who, being Indian citizens, possess constitutional rights acquired through education, enabling them to work in any part of the country. They argued that the government cannot act against public interest and favour one class through such legislation.
This verdict is a setback for the Manohar Lal Khattar-led BJP government in Haryana. The government had argued that the law was aimed at providing employment opportunities to the local youth and to prevent migration from rural to urban areas
However, the court held that the law was unconstitutional and violated the fundamental rights of employers and employees. This verdict is significant as it upholds the principle of meritocracy in private sector jobs and ensures that the constitutional rights of employers and employees are protected. It also highlights the importance of upholding the federal structure outlined in the Constitution of India.