The division bench, consisting of Chief Justice MS Ramchandra Rao and Justice Deepak Roushan, heard a petition filed by the Jharkhand Small Scale Industries Association challenging the provisions of the Jharkhand State Employment of Local Candidates in Private Sector Act, 2021, on Wednesday.
Jharkhand: The Jharkhand High Court has temporarily stayed the implementation of a state law that mandates 75% reservation for local candidates in private-sector jobs with salaries up to Rs 40,000 per month.
The division bench, consisting of Chief Justice MS Ramchandra Rao and Justice Deepak Roushan, heard a petition filed by the Jharkhand Small Scale Industries Association challenging the provisions of the Jharkhand State Employment of Local Candidates in Private Sector Act, 2021, on Wednesday.
According to the Act passed in 2021, employers must fill 75% of vacancies with local candidates for positions offering a salary of Rs 40,000 or less per month.
The counsel for the Small Scale Industries Association, AK Das, argued that the Act creates a division between state residents and non-residents, violating constitutional principles of equality in employment.
The decision comes shortly after Haryana introduced a policy reserving 75% of private sector jobs for local candidates, with a salary cap of Rs 50,000 per month.
The opposition BJP, while expressing support for any measures benefiting the state’s youth, raised concerns about the ruling party’s ability to effectively implement the decision.
“We have serious doubts that these schemes will help the intended beneficiaries. They may end up like the agricultural loan waiver, which has hardly benefited those in need,” stated Jharkhand BJP spokesperson Pratul Shahdeo.
The BJP government in Haryana recently adopted a similar policy, reserving 75% of private sector jobs for locals, but with a higher salary cap.
Praveen Jain Chhabra, President of the Federation of Jharkhand Chamber of Commerce & Industries (FJCCI), emphasized that while they did not oppose such reservation policies in principle, the government should also focus on developing a skilled workforce within the state.
“The government should prioritize establishing skill development centers and support industries in hiring local labor,”
he said.
He further contended that the state government cannot mandate private companies to hire a specific group of people. Das also referred to similar cases where the High Court of Punjab and Haryana had set aside a comparable law passed by those states.
After hearing the arguments, the Jharkhand High Court directed the state government to respond to the petition and scheduled the next hearing for March 20. The Jharkhand Assembly had passed the bill in September 2021, providing 75% job reservations for locals in the private sector with salaries up to Rs 40,000.
The legislation also ensures that priority will be given to local candidates affected by the establishment of relevant institutions, as well as to candidates from all social classes in the concerned districts.
