The Supreme Court, on Thursday, lifted an interim stay on a Haryana law providing 75% reservation to local candidates in the private sector. The top court told the Haryana government to refrain from taking coercive steps against the private sector employers opting not to follow the contentious new law.
The Haryana chief minister ML Khattar’s government had earlier this month moved the Supreme Court against a HC order that called the quota unsustainable and against natural justice. The state government argued that the order was passed after a 90-second hearing.
As such, the Supreme Court has now asked the High Court to hear the matter fully and give a ruling in four weeks. A bench of Justice L Nageswara Rao and PS Narasimha said the court does not intend to deal with merits of the matter. “Request the High Court to decide expeditiously, and not later than four weeks. Parties are directed not to seek an adjournment,” the court said. “In the meanwhile, Haryana is directed not to take coercive action against employers. The impugned order passed by the High Court is set aside as the High Court has not given sufficient reasons.”
On behalf of the Faridabad Industries Association, Dushyant Dave said the law would have far-reaching implications, including the threat of small private sector firms being forced to shut down due to lack of sufficient candidates for reserved jobs. He highlighted that private hospitals could be affected because many employed nurses from Kerala. Dave underlined that the Haryana government’s claim that 900 firms had registered under the law means nothing because they were over 45,000 private companies in the state.
Justice Narasimha acknowledged that every state has its own legislation and the court was referring to the merits of it. “What we are on is how the HC immediately delivered an interim order,” he explained.
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Appearing for Manesar Industries Welfare Association, Shyam Divan pointed out that industries will suffer as it affects the idea of India as an economic unit. The state government represented by Solicitor General Tushar Mehta argued that the law would ensure people do not have to move elsewhere for jobs. He claimed it would also solve the problem of slums. In regards to the penalty, the SG said it’s only after hearing the employee.
The Haryana State Employment for Local Candidates Act, 2020 came into effect on January 15. It provides 75% reservation in the private sector to job seekers who are domiciled in the State of Haryana. The law covers private companies, societies, trusts, and partnership firms.
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