Haryana job quota unconstitutional, will spell disaster for industrial development: FICCI

Haryana government's new legislation that provides reservations in private jobs for local candidates has drawn widespread criticism all over the state. President of Industry body FICCI, Uday Shankar said the move to reserve 75% of jobs for the local population in the private sector will "spell disaster" for industrial development and private investment in the state.

"Investors and entrepreneurs need to source the best human resources available in the country to be competitive and successful. To force them in such a regressive straight-jacket will force them to look beyond Haryana and this will ultimately hurt the interests of the state," Shankar said on Thursday.

FICCI said the move is against the spirit of the Constitution that gives the citizens the freedom to work anywhere in the country.

READ | Congress Questions BJP-JJP Government Over 75% Job Reservation In Haryana

Anupam Varma, partner at law firm J Sagar Associates, said the authority of a state government to decide the qualification and skill of employees of a private employer goes against the ease of doing business initiatives of the Centre. "The power of entry and inspection given to the authorised officers would open a pandora's box of grievances and harassment of employers," Varma said.

According to him, the legality of the Act is prima facie suspect and may not be able to withstand judicial scrutiny on the touchstone of Article 19(1)(g) and 16(2) of the Constitution.

"The Act impinges upon the sacrosanct fundamental right of freedom to practice any occupation or business. The implementation of the Act just when the industrial and business activities are resuming after the COVID pandemic might result in an exodus of investors from the state," Varma said.

READ | CII Urges Haryana To Reconsider Quota For Locals In Private Sector; Cites PM Modi's Vision

Haryana Governor approves 75% job reservation

On Wednesday, industry body CII urged the Haryana government to consider the legislation, saying reservation impacts productivity and competitiveness.

Haryana Governor Satyadeo Narain Arya gave assent to the bill providing 75% reservation in the private sector to job seekers from the state. The quota will initially apply for 10 years. Apart from tackling unemployment among locals, the government has said the law will discourage the influx of migrants seeking low-income jobs, which has a significant impact on infrastructure and leads to the proliferation of slums.

READ | Haryana Guv Nod To Bill Providing 75% Quota To State People In Pvt Sector Jobs

READ | Haryana Commerce Chamber Opposes New Job Reservation Law: 'Shortage Of Skilled Labour'