RELIEF FOR INDUSTRY/FOREIGN INVESTORS EYING HARYANA
Chandigarh (Haryana). In a big relief to the industry, especially the foreign investors eying Haryana as their investment destination, the Punjab and Haryana High Court on Thursday stayed the Haryana government’s law guaranteeing 75% reservation to locals in private sector jobs.
The court of Justice Ajay Tewari and justice Pankaj Jain, admitting multiple petitions against the implementation of the law – Haryana State Employment of Local Candidates Act, 2020, issued the direction to stay the law.
On January 15, 2022, the government notified the Haryana State Employment of Local Candidates Act, 2020 in the state. The law provides for 75% of new employment for local candidates having a salary of less than ₹30,000 a month in various privately managed companies, societies, trusts, limited liability partnership firms, partnership firms, etc.
This sent a very negative signal to the foreign companies that were planning to invest in Haryana and set up their manufacturing facilities as they would have been forced to employ local people in compliance with this notification.
There were seven-eight petitions before the court surrounding law guaranteeing 75% reservation to locals in private sector jobs in Haryana. The court has admitted the petitions and stayed the law,” said Tushar Sharma, counsel for one of the petitioners – Manesar Industrial Welfare Association (MIVA).
Haryana Deputy Chief Minister Dushyant Chautala said the government would fight for the 75% reservation.
“We will continue to fight for employment opportunities of Haryanvi youth #75%reservation,” he said in a tweet, after the court decision.
Three industry associations from Gurugram, Faridabad, and Rewari had sought judicial recourse. They had submitted that the new law went against constitutional provisions and the basic principle of merit underpinning the private sector growth.
