On the anvil

Update: 2021-11-29 14:36 GMT

Notified earlier this month, The Haryana State Employment of Local Candidates Act, 2020, is set to come into effect early next year. However, the discontent in the industry and among migrants doesn't seem to die down. The law has come to be criticized on the grounds of being politically motivated, constitutionally inaccurate and logistically implausible. The law basically provides for 75 per cent reservation in private jobs paying up to Rs 30,000 in all sectors for the native residents of Haryana. The ruling coalition in the state has lived up to its promise made before the state assembly elections by passing the law. But how effective the policy will prove out to be depends upon not only its implementation but also in removing structural flaws of the legislation. One of the dominant political classes in Haryana, Jats, have backed such a legislation in recent years. Perhaps the ruling coalition in the state is finding itself in a mess as the Jats have been drifting away from the government on the issue of farmers' protest. The fact is that Jats have all throughout expressed their discomfort against the farm laws. The coalition government faces a dichotomy as the BJP is yet to concede to all the demands of the farmers, while the Jannayak Janata Party is known to hold its base through fierce support from Jats. The challenge for the JJP will be to retain this support in future. It must be noted that siding with the Central government, Haryana CM has been regularly backing the farm laws and has said that legislation on MSP is unlikely. This might not go well with the Jat community. But what would certainly please them is the fulfilment of their long-pending demand of domicile reservation in jobs! It won't be wrong to say that one of the driving forces behind The Haryana State Employment of Local Candidates Act, 2020, could be state government's political compulsions. The direct impact of the law will be on the booming industry in certain cities of Haryana. The state has been growing at a good pace on account of a healthier investment scenario, and tinkering with the labor factor might not go well with industry. The industry sector has been repeatedly raising its concern around the issue. It is being speculated that equations may change drastically in terms of investment in the NCR regions. The rise of Haryana cities like Gurgaon has been phenomenal over the past few years. It has left behind other cities in NCR by a good margin. But restrictive legislations like the one being discussed could hamper the investment environment in the city. Experts go on to say that cities like Noida may bounce back under these circumstances, filling the gap left by Gurgaon. Gurgaon Industrial Association has even filed a petition challenging the law in Haryana and Punjab High Court citing that the law is constitutionally inconsistent and goes against the principle of meritocracy. Clearly, the law appears to be in contradiction with Article 16 of the Indian Constitution. Clause 1 of Article 16 clearly says that states cannot discriminate against any citizen in the matters of employment. Cluse 2 of the Article further clarifies 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 to any employment or office under the State". However, clause 3 of the Article 16 empowers Parliament to provide domicile-based reservation in public employment and jobs. But then again there are certain caveats to this. Further, there are issues relating to the reservation ceiling of 50 per cent, as specified under the Indra Sawhney and Nagraj case. It appears that the law might have to pass certain tests before it comes into effect. The journey of the law has so far been tardy. While it was passed early in March itself, it was notified as late as in November, and is slated to come into effect on January 15. Even if the law is enacted there are logistical issues relating to a complex process of registration for both the recruiters and those seeking recruitment, leaving a gaping hole for systemic irregularities. It now rests upon the judiciary to assess the situation before the law comes into force.

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