Jharkhand HC Ruling on Private Sector Job Quota Law:
The Jharkhand High Court has stayed the implementation of the Jharkhand State Employment of Local Candidates in Private Sector Company Act, 2021, which mandated a 75% reservation for local candidates in private-sector jobs with salaries up to Rs 40,000.
- This law, introduced to boost employment for locals but faced criticism for violating constitutional principles.
- The Jharkhand Small Scale Industries Association (JSSIA) filed a petition challenging the 75% local quota law, arguing that it violates the principle of equality, and the freedom to conduct business.
- The advocates representing JSSIA contended that the Act unfairly creates a division between local and non-local candidates, restricting employers’ ability to hire freely.
- The petition referenced the Punjab and Haryana High Court quashed the Haryana State Employment of Local Candidates Act, 2020, which was struck down by the Punjab and Haryana High Court for violating constitutional rights.
- The Jharkhand HC stayed the Jharkhand State Employment of Local Candidates in Private Sector Company Act, 2021 implementation.
- The court found merit in the JSSIA’s argument that the law violates Article 14 Right to Equality, by discriminating against non-local candidates.
- And the Article 19(1)(g) freedom to conduct business, by restricting private companies’ hiring choices.