Rohtak Firm Goes To HC Against Haryana Law Reserving Pvt Jobs For Locals

A Rohtak manufacturer and wholesaler of motorcycles parts has filed a petition against the Haryana government's new law mandating 75 per cent reservation for local people in private jobs with a monthly salary cap of Rs 50,000.

AK Automatics’ petition before the Punjab and Haryana High Court states that the domicile law "is illegal, arbitrary and ultra vires/ unconstitutional and cannot stand the legal scrutiny as it violates the principles…of the Constitution of India". The court is likely to hear the petition next week

Business Standard has previously reported that the private sector across the board, has opposed the new law. Experts have said the reservation provision will set unrealistic goals for organisational hiring and hurt productivity by reducing the talent pool to a few people in the state.

Private sector jobs and remunerations are "purely based on skills" and people have a Constitutional right to take up jobs in any part of India, the petition said.

The petition says the law is "nothing but an act of unfair competition between deserving employees and local residences of Haryana acclaiming to have a right as an employee on the basis of local residence is nothing but a sheer abuse of process of law".

According to Article 16(3) of the Constitution, "Nothing in this article shall prevent Parliament from making any law prescribing, in regard to a class or classes of employment or appointment to an office under the Government of, or any local or other authority within, a State or Union territory, any requirement as to residence within that State or Union territory prior to such employment or appointment".

According to industry estimates, Haryana is India’s largest auto hub and produces 50 per cent of the country's passenger vehicles, 60 per cent of motorcycles and 11 per cent of India’s tractors. Of the total 250 original equipment manufacturers, 50 are present in Haryana and the State has a strong base of 1,20,000 small and medium enterprises, which provide a network of auto ancillary companies.

Further, the IT-IT enabled Services sector contributes about 10 per cent of Haryana’s GDP and more than 50 per cent of the States’ exports. Gurugram is the world’s BPM capital, employing about 5 per cent of global BPM workforce and 13 per cent of total Indian BPM workforce.

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