Haryana Govt's 75% Job Quota Law Will Spell Disaster, Hurt Interests Of State: FICCI

The Haryana government is looking to reserve 75 percent of jobs in the private sector for the local residents but the legislation is facing criticism from industry bodies.

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New Delhi: Federation of Indian Chambers of Commerce & Industry (FICCI) has criticised the Haryana government's new legislation which seeks to reserve private jobs for local candidates, by stating that it will "spell disaster" for industrial development in the state.

The Haryana government is looking to reserve 75 percent of jobs in the private sector for the local residents.

FICCI President Uday Shankar said the government's move will spell disaster for the industrial development and private investment in the state.

"Investors and entrepreneurs need to source the best human resources available in the country to be competitive and successful. To force them in such a regressive straight-jacket will force them to look beyond Haryana and this will ultimately hurt the interests of the state," Shankar said.

The industry body also termed the decision as being against the spirit of the Constitution that gives the citizens of India the freedom to work anywhere in the country.

Anupam Varma, partner at law firm J Sagar Associates, said that the legislation will contradict central government’s initiatives of promoting ease of doing business.

"The power of entry and inspection given to the authorised officers would open a pandora's box of grievances and harassment of employers," Varma said.

According to him, the legality of the Act is prima facie suspect and may not be able to withstand judicial scrutiny on the touchstone of Article 19(1)(g) and 16(2) of the Constitution of India.

"The Act impinges upon the sacrosanct fundamental right of freedom to practice any occupation or business. The implementation of the Act just when the industrial and business activities are resuming after the Covid pandemic might result in an exodus of investors from the state," Varma said.

Haryana Governor Satyadeo Narain Arya has given assent to the bill granting 75 percent reservation in the private sector to local job seekers from the state. For the domicile status, a person should be born in Haryana or have lived there for at least 15 years.

The quota will initially apply for 10 years.

According to the state government, the law will tackle the problem of unemployment among local people and discourage the influx of migrants seeking low-paid jobs, which has a significant impact on local infrastructure and leads to the proliferation of slums.

The decision continues to be debated as people argue if the move is aimed to tackle any sense of anti-incumbency in the state amid anger instilled by farmers’ protests.

(With Agency Inputs)