In a major relief for private companies, the Punjab and Haryana High Court on Thursday granted an interim stay on the implementation of the law that reserves 75 per cent of certain private jobs for domiciled candidates in Haryana. The Haryana State Employment of Local Candidates Act came into effect from January 15 and makes it mandatory for companies to offer 75 per cent of the jobs offering a monthly salary of less than ₹30,000 for local candidates.

Industry bodies had filed petitions challenging the law and the petitioners include Faridabad Industries Association and Gurgaon Industrial Association.

Rajiv Chawla, Chairman, Integrated Association of Micro, Small and Medium Enterprises of India (IamSMEofIndia), which is among the petitioners, said, “We welcome the Hon’ble High Court’s stay on the implementation of the Haryana State Employment of Local Candidates Act. This comes as a big relief for companies in the State.”

 We hope the Haryana Government will reconsider the appeal of industry bodies and companies and look at ways to foster skilling and development of youth to be able to create mostainable and long-term employment opportunities within the Sstte. As legislations like the Haryana State Employment of Local Candidates Act are unnecessary barriers, which impact both economic and employment growth in the Sstte,” added Lohit Bhatia, President, Indian Staffing Federation (ISF)

‘Continue to fight’

Meanwhile, Deputy Chief Minister of Haryana, Dushyant Chautala tweeted on Thursday, “We will continue to fight for employment opportunities of Haryanvi youth #75% reservation (sic).”

Industry bodies such as CII, FICCI and PHDCCI have been arguing that the law is discriminatory in nature that will impact the competitiveness of the businesses and lead to a creation of a new license raj in the State.

Last month, Anandi Sinha, Vice-Chairman, CII, Gurgaon Zone had said that, “the passage of the Haryana Employment of Local Candidates Act, 2020 has sent negative signals across the investor community worldwide towards investor friendly image of the Government of Haryana and implementation of the Act at a time when the industry is struggling on account of restrictions imposed for controlling COVID-19 will further deteriorate its position as a business friendly State.,”