The Supreme Court of India has issued a notice to the Centre seeking its response to a plea from the Haryana government against a Punjab and Haryana High Court order. The high court, in its ruling on November 17, 2023, declared the Haryana State Employment of Local Candidates Act, 2020, as “unconstitutional.” This law provided 75% reservation in private sector jobs to the residents of the state.
Solicitor General Tushar Mehta, representing the Haryana government, appeared before the Supreme Court and argued that the high court’s verdict lacked reasoning. The Haryana government has challenged the high court’s decision, urging the apex court to reconsider the case.
The Punjab and Haryana High Court, in its judgment, stated, “We are of the considered opinion that the writ petitions are liable to be allowed, and the Haryana State Employment of Local Candidates Act, 2020, is held to be unconstitutional and violative of Part III of the Constitution of India.” The high court further declared the law “ultravires” and ineffective from the date it came into force.
The controversial law, which came into effect on January 15, 2022, aimed to provide job reservations in the private sector for residents of Haryana. It covered jobs with a maximum gross monthly salary or wages up to ₹30,000. However, several petitions were filed against the Act, challenging its constitutionality.
The high court, in its ruling, highlighted the law’s objective to create an artificial gap and discrimination among citizens of India. It emphasized that the state cannot direct private employers on whom to employ, as it goes against the principles of laissez-faire.
“It is not for the state as such to direct the private employer whom it has to employ, keeping in view the principles of laissez-faire that ‘the lesser it governs, the better itself.’ It cannot, as such, discriminate against individuals on account of the fact that they do not belong to a certain state and have negative discrimination against other citizens of the country,” the high court noted in its judgment.
The Supreme Court has not only sought a response from the Centre but has also issued a notice to the Faridabad Industries Association on the Haryana government’s appeal. The case brings attention to the ongoing debate over the constitutional validity of state laws imposing job reservations in the private sector, with potential implications for similar legislation in other states.
