Jharkhand HC Stays 75% Quota Law For Local Jobs In Private Sector

The Jharkhand High Court has temporarily halted the implementation of a state law that mandates 75% job reservations for local candidates in the private sector, specifically for positions offering a salary of up to Rs.40,000 per month.

A division bench, consisting of Chief Justice MS Ramchandra Rao and Justice Deepak Roushan, heard a petition on Wednesday filed by a small-scale industries association challenging the provisions of the Jharkhand State Employment of Local Candidates in Private Sector Act, 2021.

The Act, passed by the Jharkhand Assembly in 2021, requires employers in the state to ensure that 75 percent of the total vacancies for posts offering salaries up to Rs.40,000 per month are filled by local candidates. This provision applies to existing vacancies and is designed to prioritize local residents in the hiring process.

During the hearing, AK Das, counsel for the Jharkhand Small Scale Industries Association, argued that the law creates a discriminatory distinction between local candidates and those from outside the state. He contended that the law violates constitutional principles, particularly the right to equality in employment. According to Das, the state government cannot impose such hiring restrictions on private companies, as doing so infringes upon their autonomy.

Das further pointed out that similar legislation had already been struck down by the High Court of Punjab and Haryana, where a similar law was overturned. He urged the Jharkhand High Court to follow suit, asserting that such measures are unconstitutional.

The bench, after considering the arguments, directed the state government to file a response to the petition and scheduled the next hearing for March 20.

The Jharkhand State Employment of Local Candidates in Private Sector Bill, passed by the state assembly in September 2021, stipulates that private employers must reserve 75 percent of job vacancies for local candidates for positions with a salary of Rs 40,000 or less. The bill had been previously reviewed by a select committee, which made some revisions before it was passed.

Additionally, the legislation mandates that special attention be given to the representation of displaced individuals from the area due to the establishment of the concerned institution, as well as ensuring diversity within the local candidate pool across different districts and social classes.

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