Haryana private sector job quota to kick in from January 15

Companies that come into being after the commencement of the law will be exempted for a year from hiring 75% local candidates; internal hiring will also be exempted

One year after the state assembly passed it, the BJP-JJP government in Haryana on Saturday ordered that the law providing for 75% reservation for locals in new private sector jobs will come into force from January 15 next year.

The delay in implementation of the law has been on account of framing of the Rules.

The state assembly had passed the controversial piece of legislation titled the Haryana State Employment of Local Candidates Bill on November 5 last year, and the governor gave assent to the Bill on March 2 this year.

The delay in implementation of the law has been on account of framing of the Rules, officials said. The newly-enacted law provided for 75% reservation in private sector jobs to those having a resident certificate (domicile).

The law will be applicable for a period of 10 years. The state government had also relaxed the residency (domicile) requirement from 15 to five years for a person to get a bona fide resident certificate in state to provide some flexibility to the private companies in hiring.

Salary limit for jobs available reduced

In a measure to placate the industry, the state government on Saturday also reduced the upper limit of gross monthly salary for jobs which will come under the ambit of private sector job quota law. As per a notification, jobs having a gross monthly salary of not more than ₹30,000 will be up for hiring from among local candidates.

The Bill passed by the assembly last year had capped the gross monthly wages for jobs available for hiring at ₹50,000.

However, following ‘feedback’ from industrial houses and entrepreneurs, the state government decided to reduce the salary cap.

More exemptions in the offing

It is learnt that as an industry-friendly measure, companies, firms and establishments which come into being or set up after the commencement of the law will be exempted for a year from hiring 75% local candidates by the state government.

Also, any hiring from within (internal hiring) by a company or an establishment will be exempted from the law. These provisions will be a part of the rules being framed under the Act. Officials said the rules for implementing the Act will also notified soon.

Haryana chief minister Manohar Lal Khattar said the need of the hour is to create a harmonious environment for industry as well as the youth along with creating a right balance between the progress of industries and the economy.

‘Law may not pass legal test’

Legal experts said the new law is in contravention of the Constitution and will not withstand judicial scrutiny. Former Haryana advocate general Ashok Aggarwal had said domicile can never form the basis of employment.

Aggarwal said if public employment cannot be given on the basis of domicile how can private jobs be. The government is not the employer in private sector jobs, he said. He added that only a small percentage of low-end jobs can be reserved and that too for special reasons.

While tabling Bill in assembly, the government had modified its Section 23, a provision which gave it an overriding effect over any other law, a broad provision having the potential to be repugnant to an Act of the Parliament. Section 23 in the Bill was modified to provide overriding effect on any other state law.

However, issues raised by the law and legislative secretary during vetting of the proposed law still holds good, legal experts said. The clause providing for preference in jobs to the local candidates domiciled in Haryana, experts said, was in contravention of Article 14 of the Constitution pertaining to equality before the law and Article 19 (1)(g) which provides for protection of certain rights to practice any profession, or to carry on any occupation, trade or business.

The private sector job quota move was piloted by deputy chief minister Dushyant Chautala’s Jannayak Janta Party (JJP), coalition partner of the BJP in Haryana. The controversial piece of legislation did not find much support from the BJP quarters initially. In fact, Khattar had once sounded non-committal on the prospect of enacting such a law.

Sources said since the BJP government at the Centre has a different view on the matter, it was surprising how the governor assented to the Bill.