Haryana HC reverses Haryana job reservation law

Punjab and Haryana High Court has nullified the Haryana government’s legislation that mandated a 75% job reservation for locals in the private sector.

Punjab and Haryana High Court has nullified the Haryana government’s legislation that mandated a 75% job reservation for locals in the private sector. This verdict has reignited debates on the interplay between governmental policies and free-market dynamics.

Enacted in November last year, the Haryana State Employment of Local Candidates Act 2020 stipulated a 75% job reservation for state residents in private sector roles with a monthly wage of less than ₹30,000. While the law was hailed as a significant move towards tackling youth unemployment in the state, it also elicited apprehension from the business sector regarding its potential repercussions on the investment environment.

The High Court’s decision to repeal the law was made after thorough examination of the presented arguments. The court noted that the Act has not been enforced yet, hence the petitioning industry has not been negatively impacted by the law at this point. The complete rationale behind the court’s decision is yet to be fully revealed.

In the wake of the High Court’s ruling, the Supreme Court has suspended the High Court order and directed the High Court to deliver a final verdict within four weeks. Meanwhile, Haryana has been instructed not to enforce any punitive measures against employers.