- The act was passed on November 6, 2020, and came into force on January, 15, 2022
- The purpose of this act is to provide 75% reservation for state domicile in the private sector
- This reservation was meant for private sector companies that offer salaries for less than Rs. 30,000
- It also applies to any employer that employs 10 or more persons on either salary, wages, or any other remuneration in manufacturing, carrying on businesses, or any other service in Haryana
- It consists of private companies, communities, trusts, and partnership firms in Haryana.
- Faridabad Industries Association and Others have filed a petition challenging the applicability of this Act, claiming that provisions of the Act would have a bearing on their future business operations and investments
- Punjab & Haryana High Court granted an interim stay order on operation of the Act on 3-Feb-22.
REASONS PROVIDED IN THE PLEA
- Industry groups contended that the law violated Constitution’s principles as well as the fundamental principle of meritocracy, which provided foundation for firms to thrive & maintain a competitive edge
- Provisions of the Act are unconstitutional on account of being arbitrary, vague, and discriminatory
- It will have an impact on industry performance & efficiency, as well as post Covid-19 recoveries
- It is in contravention with the basic citizenship criteria for the Union of India and it fails to fulfil the federal structure which is included in the basic structure doctrine of India.
- The government’s introduction of the “son of the soils” policy aims to create a reservation in the private industry, which is a violation of employees’ and citizens’ constitutional protections because private-sector positions are dependent on employees’ abilities and analytical inclination of mind.
- The law infringes on employers’ constitutional protections because private-sector occupations are solely based on the abilities and analytical inclination of mind of employees, who are Indian citizens with constitutional rights to choose jobs in any region of the country based on their education.
- It was also contended that the law is illegal and cannot withstand legal scrutiny since it breaches the principles of Articles 14, 15, 16, (2) and (3), 19 (1)(g), and 21 of the Constitution.
- The provision giving priority to local candidates in Haryana for positions is in violation of Article 14 of the Constitution, which guarantees equality before the law, and Article 19 (1)(g), which guarantees certain rights to practice any profession or carry on any vocation, trade or business. It states that the law does not include practical concerns due to the criteria provided in the Act and therefore, is in contradiction with article 16(2).
- It is not a fair fight between deserving candidates and local residents who come under the category of the reservation.
- Reservations will cause multinational firms and tech companies to move out of the legislature of Haryana State.