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RESERVATION IN THE PRIVATE SECTOR



  Jul 19, 2024

RESERVATION IN THE PRIVATE SECTOR



Q: What are the constitutional challenges to state laws that reserve private sector jobs for local residents, and what was the recent court ruling on such a law in Haryana?

A:
Some states in India, like Andhra Pradesh, Karnataka, and Haryana, have introduced laws that reserve private sector jobs for local residents. For example, the Haryana State Employment of Local Candidates Act, 2021, requires that 75% of private-sector jobs with salaries under ₹30,000 per month be given to local residents for ten years. The aim is to reduce the influx of migrants, which can strain local resources and lead to the growth of slums.

Constitutional Challenges:
1. Article 14: This article guarantees equality before the law. Reserving jobs for locals may be seen as discriminatory.

2. Article 16: This article ensures equal opportunity in public jobs. Only Parliament can create laws favoring local residents in public employment, not state legislatures.

3. Article 19(1)(g): This article gives citizens the right to practice any profession or business. Local job reservations in private employment might violate this right by limiting opportunities for non-locals.

4. 50% Reservation Limit: The Supreme Court has ruled that reservations should not exceed 50% unless there are exceptional reasons. Haryana's law mandates 75%, which exceeds this limit.

Court Ruling:

The Supreme Court has not yet nullified any state law reserving private sector jobs for locals, but it has suggested these laws might be unconstitutional. The Punjab and Haryana High Court recently ruled on the Haryana State Employment of Local Candidates Act, 2021, and struck it down. The court said that requiring 75% of private sector jobs to be reserved for locals was unconstitutional.

Conclusion:

State laws that reserve private sector jobs for local residents face significant constitutional challenges. These challenges relate to equality, public job restrictions, and the right to work. The recent court ruling against Haryana's law reflects these concerns and emphasizes the need for such policies to comply with constitutional provisions.





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