• Context : Haryana government seems to be having its first brush with reality since announcing with great pomp and show its electorally driven decision of 75% quota for locals in private sector jobs.
• It is now considering ‘relaxations’ in the said order to assuage the concerns of industry.
• At the forefront of the backlash are IT firms situated in Gurgaon.
• The law is yet to come into force and the rules thereof are yet to be framed.
• Recently Principal Secretary, Industries and Commerce Department said that the government will implement the law after careful consideration of concerns of the industry.
• The legislation facing the heat is Haryana State Employment of Local Candidates Act, 2020
• The Act, providing 75% jobs to the locals in the private sector with salary upto Rs 50,000 was one of the key poll promises of Dushyant Chautala-led JJP.
• A survey, last month, by NASSCOM found that a majority of the 500-odd IT and ITeS companies in Haryana are worried over the impact of the new law on their recruitment and growth strategies.
• The Information Technology and Information Technology enables Services companies have recently indicated that they might be looking to shift operations once the law is implemented.
• This might sound danger bells for the Haryana government considering the fact that the companies give direct employment to almost 4 lakh people in Haryana.
• Almost 80% of the companies have responded that the new law will have negative impact on their future business operations and investment plans.
• According to them the law is also in contravention to the notions of equal opportunity, diversification and inclusion.

         The Law:

•  Under the Haryana State Employment of Local Candidates Act, 2020 , every private employer in Haryana is mandated to employ 75% “local candidates” for posts where the gross monthly salary is less than or equal to  ?50,000.
• The decision fulfils a key election promise of the ruling coalition, with Haryana joining a growing group of states that reserve jobs for local candidates.
• The law provides for reservation for a “local candidate”, which has been defined under the law as someone “domiciled in State of Haryana”.

          Legal challenges, constitutionality and relevant provisions of the Constitution:

• The Law is set to confront serious legal challenges once its constitutionality is challenged before a constitutional court.
• Article 14 of the Constitution of India, that guarantees equality before the law and equal protection of law to all persons within the territory of India.
• Articles 15(1) and 15(2) prohibit the state from discriminating against any citizen on grounds of religion, race, caste, sex, place of birth.
• Article 15(3) empowers the state to make special provisions for women and children.
• Article 15(4) authorises the state to make special provisions for the advancement of any socially and educationally backward classes of citizens or for the Scheduled Castes and the Scheduled Tribes.
• Article 15(5) says that the State can provide for reservation for admission into education institutions, including private schools or colleges, whether or unaided by the government.
• Article 16(1) mandates that the state cannot discriminate against any citizen in the matters of employment.
• Article 16(2) makes it clear that “no citizen shall, on grounds only of religion, race, caste, sex, descent, place of birth, residence or any of them, be ineligible for, or discriminated against in respect or, any employment or office under the State.”
• Article 16(3) allows for requiring necessary residence qualifications for government jobs, thus introducing the domicile-based preferential treatment. But such law can be introduced by Parliament alone.
• Article 16(4) also allows the State to reserve employment for any class of citizens, which in the opinion of the state, is not adequately represented in services. But this provision pertains to Backward Classes.
• Article 16(4A) allows for reservation in promotions the same is restricted to Scheduled Caste (SC) and Scheduled Tribes (STs).
• Constitution 103rd Amendment Act, 2019, amends Articles 15 and 16 that provides a further 10% reservation in jobs and educational institutions for candidates belonging to the general category. But this provision is meant to benefit economically backward sections of the society only.

These provisions of the Constitution seek to balance the right to equality for all citizens by providing for reservation in favour of backward sections of society.

With no sound legal reasoning for reservation in favour of ‘locals’  and no relevant provision in the Constitution to correspond to, the law is likely to find the going tough when it faces constitutional and legal scrutiny.