The apex industry body recently conducted the survey to assess the impact of the New Haryana State Employment of Local Candidates Act, 2020, which stipulates 75 per cent reservation for locals in private sector jobs, with a monthly salary of up to Rs 50,000.
Haryana’s new ‘75% jobs for locals’ law is a harbinger of doom
Haryana Governor Satyadeo Narain Arya’s assent to a law regulating private sector hiring portends a potentially perilous slide in India’s investment climate and its socio-economic framework. The Haryana State Employment of Local Candidates Act of 2020 seeks to ensure that 75% of all jobs with gross monthly salaries of up to ₹50,000 are provided to the State’s own residents. The clamour for preserving economic activity for ‘sons of the soil’ is a recurrent theme now Andhra Pradesh (AP) had passed a similar law in 2019, and the Madhya Pradesh CM has promised one to reserve 70% private sector jobs. Haryana’s law could face legal challenges like AP’s did, as it ostensibly flies in the face of the Constitution, especially Article 19(1)(g) and Article 16(2). Operationally, the law imposes onerous and contentious responsibilities on key personnel of firms in the State, including those with as few as 10