J’khand HC Stays 75% Quota Law For Local Jobs In Pvt Sector

The Jharkhand High Court has temporarily halted the implementation of a state law that mandates 75 percent job reservations for local candidates in private-sector positions with monthly salaries up to Rs.40,000.

The ruling came after a petition was filed by the Jharkhand Small Scale Industries Association, challenging the provisions of the Jharkhand State Employment of Local Candidates in Private Sector Act, 2021.

A division bench, comprising Chief Justice MS Ramchandra Rao and Justice Deepak Roushan, heard the case on Wednesday. The law, passed by the Jharkhand Assembly in 2021, requires employers to fill 75% of vacancies in positions offering salaries not exceeding Rs.40,000 per month with local candidates.

During the hearing, counsel for the Jharkhand Small Scale Industries Association, AK Das, argued that the Act unfairly creates a distinction between state residents and candidates from other regions. He claimed that the law violated the constitutional principle of equality in employment, as it restricts private companies from hiring individuals based solely on their geographical origin.

Das further pointed out that similar legal challenges had been addressed in the past, citing the example of the Punjab and Haryana High Court, which had overturned similar legislations from those states. He emphasized that the government should not have the authority to dictate hiring policies for private businesses.

After hearing the arguments, the Jharkhand High Court directed the state government to file a response to the petition. The court has scheduled the next hearing for March 20.

The Jharkhand Assembly had passed the Jharkhand State Employment of Local Candidates in Private Sector Bill in September 2021. The bill mandates the 75 percent reservation in private-sector jobs with a monthly salary limit of Rs 40,000 for locals.

Additionally, it stipulates that efforts should be made to ensure representation from various sections of society, including displaced individuals and those from the district where the institution is located.

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