While setting aside the High Court ruling suspending the Haryana government’s bill reserving 75% of private-sector jobs for state residents, the Supreme Court directed the HC to determine within four weeks on petitions challenging the legislation’s constitutionality.
Additionally, the state government was barred from taking any legal action against employers during this time period. A Bench led by Justice L Nageswara Rao reversed the Punjab and Haryana High Court’s February 3 interim decision restraining the “Haryana State Employment of Local Candidates Act, 2020,” stating that the latter “had not provided sufficient reasons for stopping the legislation.”
The Bench, which also included Justice P S Narasimha, stated that it did not wish to engage in the merits of the case and would instead defer to the HC’s decision. At first, Solicitor General Tushar Mehta, representing the state, informed the apex court that four additional states had comparable statutes. The Bench then considered whether to transfer all of them to itself and hear the case or to refer the matter to the HC.
Haryana Government moved to Supreme Court after High court stay on reservation in Private Jobs
The SG responded that he would move to transfer the cases to the Supreme Court and sought the Bench to temporarily halt the HC ruling. The Bench said, however, that it would then have to consider the case on the merits because the problem “relates to livelihood and we are worried about it.” “If you claim that the order is not reasoned, we can remand it for a reasoned order,” Justice Rao remarked.
Senior Advocate Dushyant Dave, appearing on behalf of a few groups that had challenged the statute in the High Court, stated that he, too, can file a transfer application and that implementing it will result in daily prosecutions. “Is this the appropriate way for the legislature to act?” If this law is applied for a single day, everyday prosecutions will occur. There are 9 lakh businesses,” he stated.
Justice Narasimha intervened, stating that each state has its own statute and that the court was referring to its merits of it. “What we are focusing on is how the HC issued an interim order instantly,” he remarked. Dave stated that even law companies will be impacted by the new law, as they will be prohibited from employing juniors from other states unless they employ at least 75% of juniors from Haryana.
Senior Advocate Shyan Divan, who appeared on behalf of several other organizations, stated that it will have a dramatic effect on business. He also urged the court to direct that no coercive measures be taken if the court decides to revoke the stay. “We are not interested in consequences, offenses, or prosecution. This has far-reaching constitutional consequences for our federation,” Dave explained.
The SG stated that while employers face punishment, it is only after hearing from the employee. The Bench stated, however, that “we are also considering the fact that there are thousands of people employed there.”
The Haryana State Employment of Local Candidates Act, 2020, which took effect on January 15, provides for a 75% reservation in the private sector for job applicants “domiciled in the State of Haryana.” The rule applies to private corporations, societies, trusts, and partnership firms that pay a monthly gross salary or wages of up to Rs 30,000. Central or state governments, as well as any entity controlled by these governments, are not covered by the Act.