In its order, the high court had stated, “The underlying object of the legislation, as has been succinctly put by counsel for the petitioners, is to create an artificial gap and a discrimination qua the citizens of India.” Furthermore, the high court held the opinion that it is beyond the purview of the state to legislate on this issue and restrict private employers from recruiting from the open market for the category of employees who were receiving less than ₹30,000 per month.
Supreme Court of India
In a significant legal development on Monday, the Haryana government has taken a bold step by appealing to the Supreme Court against the Punjab and Haryana High Court’s decision to nullify a state law from 2020. This law was pivotal in ensuring a 75 percent job reservation for local residents in the private sector, marking a contentious yet crucial move towards prioritizing local employment. The Supreme Court, acknowledging the gravity of the matter, has scheduled the case for an expedited final hearing.
The origins of this legal battle trace back to November 2023, when a division bench of the Punjab and Haryana High Court critically evaluated the law, leading to its quashing. The court’s observation was stark, noting,
“The private employer, thus, has been put under the anvil of the State as to whom to employ and the penalties which are liable to be imposed on contravention which have already been noticed which multiply on account of any violations apart from leading to criminal prosecution by filing of a complaint.”
This ruling highlighted the perceived overreach of the state in dictating employment practices to private entities, a move seen as potentially stifling for the business environment.
The law in question set a precedent by mandating a substantial reservation in jobs paying up to Rs 30,000 per month for local residents. The state government defended this policy as a strategy to empower the local youth by enhancing their employment prospects. However, this initiative faced stiff opposition from the industrial sector, which criticized it as overly restrictive and potentially unconstitutional, leading to its challenge in the High Court.
Haryana CM Manohar Lal Khattar
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This is not the first instance of the law facing judicial scrutiny. Previously, in 2021, when the law was contested at the High Court, its implementation was temporarily halted. The Haryana government, undeterred, escalated the matter to the Supreme Court. In a notable decision in 2022, the Supreme Court overturned the High Court’s interim order, thereby reinstating the law. Furthermore, the apex court directed the High Court to expedite the hearing of the case, emphasizing the need for a swift resolution without delays.
As the Supreme Court prepares to delve into this complex legal issue, the implications of its forthcoming judgment are immense. Not only will it determine the fate of job reservation policies in Haryana, but it may also set a precedent for how local employment initiatives are balanced with the rights of private enterprises across India. The legal principles at stake, including the extent of state intervention in private sector employment and the constitutional validity of such measures, are of paramount importance. The outcome of this case will be closely watched by legal experts, policymakers, and the business community alike, as it promises to shape the landscape of employment law in India for years to come.
CASE DETAILS:
State of Haryana v. Faridabad Industries Association | Special Leave Petition (Civil) No. 1627 of 2024
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