- In November, 2023 Punjab and Haryana High Court quashed Haryana State Employment of Local Candidates Act, 2020.
- Court declared Act as unconstitutional and violative of Part III (Fundamental rights) of the Constitution of India.
- Act provided 75% reservation to locals in private sector jobs (having monthly salary of less than Rs. 30,000).
- Other States like Andhra Pradesh (2019) have also enacted similar acts.
- Why states are pushing for local Reservation in the Private Sector?
- Private sector is the biggest job creator, thus reservation can fulfill the commitment to social justice.
- States like Haryana are facing high unemployment rate.
- Also, mechanization in agricultural is pushing local people toward private sector jobs.
- The private sector, benefits from the government ie. tax concessions, cheaper loans etc. thus, can be asked to implement affirmative policy.
- Concerns Raised
- Violates Article 14, 16 (Right to equality) and 19 (5) (Right to freedom to practice any profession, or to carry on any occupation, trade or business).
- It may push businesses to migrate (due to lack skill workforce).
- Fuels sons-of-the-soil syndrome (preferring locals) in other states as well.
- Other: Against the fundamental principle of merit, etc.