Haryana’s Private Sector Quota Rejection

Why in News:

• Recently, the Punjab and Haryana High Court declared the Haryana State Employment of Local Candidates Act, 2020 unconstitutional.

Background:

• Passed in November 2020, the law reserved 75% of private sector jobs (with salaries under Rs 30,000) for Haryana residents.

Challenges:

• The law was challenged by the several  Industries Association and other local groups.
• They argued it infringed on constitutional rights and disrupted the federal structure by imposing “sons of the soil” policy.

High Court’s Judgement:

• The court criticized sections of the Act for promoting “Inspector Raj” and imposing undue control over private employers.
• It noted that the Act impaired the right to occupation and business under Article 19(1)(g) of the Constitution.
• The court also highlighted the Act’s discriminatory nature against non-Haryana residents.