Haryana local job quota: Supreme Court lifts stay; no coercive action against employers

The Supreme Court on Thursday lifted a stay on the Haryana law, which sets aside 75% of class III and IV jobs for locals, allowing the law to come into effect. It, however, restrained the state government from taking any coercive action for now against employers who may default in implementing it.

The state law came into effect on Jan 15, 2022, but was stayed by the Punjab and Haryana High Court on Feb 3, 2022. The state then appealed against the decision to the top court.

On Thursday, a top court bench, led by Justice L Nageswara Rao, frowned on the perfunctory manner in which the HC had, without hearing all sides, especially the state properly, had thrown the principle of presumption of constitutionality of a law to the wind without assigning reasons for its decision.


The bench then lifted the stay on the law. It, however, restrained the state government from taking any coercive steps for now against employers who may default in implementing it. The law carries a jail term of one year and a fine of ₹1000 for failure to implement the law.

Industry associations had, through senior advocates Dushyant Dave and Shyam Divan, expressed fears about harassment under the new law. The SC asked the HC to decide the issue afresh after hearing all sides at length. Natural justice mandates that all sides be heard.

After the state government complained that the HC only heard it for a few minutes and stayed a law, the top court set aside the stay on the grounds that no reasons were assigned for the HC decision. The Haryana case was argued by SG Tushar Mehta.

"The high court stay is a very harsh decision," Mehta said. The law, the Haryana State Employment of Local Candidates Act, 2020, will prevent migration and spread of urban slums, he said. These are not high-end jobs, only class III and IV, he said.