On Friday, the Punjab and Haryana High Court invalidated the Haryana State Employment of Local Candidates Act, 2020, which mandated a 75 percent reservation in private sector jobs for individuals domiciled in Haryana.
The division bench, comprising Justice Gurmeet Singh Sandhawalia and Justice Harpreet Kaur Jeewan, declared the law enacted by the State in 2021 as unconstitutional and a violation of fundamental rights under Part III of the Constitution of India.
The court emphasized that state legislative powers should not undermine national interests or encroach upon the authority of the Union government. It asserted that the state cannot compel private employers to hire local candidates, as such a mandate could lead to the establishment of "artificial walls" across the country.
Furthermore, the court ruled that the state exceeded its jurisdiction by legislating on the issue and restricting private employers from recruiting openly for positions with salaries below ₹30,000 per month. It stated that such actions go against the principles of the Indian Constitution, which prohibits discrimination based on state affiliation and birthplace.
The court criticized the state's reservation law, characterizing it as a manifestation of a discriminatory policy that deems certain individuals ineligible for employment based on their origin. It emphasized that legislative measures promoting discrimination contradict the constitutional ethos and undermine the unity of the nation.
Additionally, the court underscored the importance of interpreting issues in line with the text and spirit of the Constitution, rather than conforming to popular societal notions. It stressed that constitutional culture serves as a safeguard against the tyranny of the majority, and the loss of authority by the Constitutional Court could jeopardize democracy.
The court concluded that the provisions of the Act contravene Article 19 of the Constitution and are unconstitutional. It highlighted the violation of the right to freely move and reside throughout India and deemed the law unreasonable. The concept of constitutional morality, it noted, was openly violated by assigning a secondary status to citizens outside Haryana and restricting their fundamental rights.
In the previous year, the High Court had temporarily halted the implementation of the law, but the Supreme Court later set aside this decision, directing the state not to take coercive measures against employers. The law, championed by Deputy Chief Minister and JJP leader Dushyant Chautala, was passed in 2021 and mandated 75 percent reservation for local youth in private sector jobs with a monthly salary of less than ₹30,000 from January 15, 2022, with later exemptions for short-term work and certain primary services.
The Act applied to various entities employing ten or more persons. Legal representation in the case included Senior Advocates Anupam Gupta, Akshay Bhan, and others for the petitioners, and Senior Advocate Puneet Bali, Additional Advocate General Jagbir Malik, and others for the State government, with Additional Solicitor General Satya Pal Jain representing the Union of India.
