Supreme Court Quashes High Court's stay on 75 Percent Reservation in Private Sector

• 18 Feb 2022

Why in News

• Recently, the Supreme Court quashed the order of the Punjab and Haryana High Court that stayed the law granting 75 per cent reservation to local people in the private sector.

Key Points

• Significantly, the Haryana government had filed a special leave petition in the Supreme Court. The Supreme Court has asked the High Court to take a decision in this matter within a month and instruct the State Government not to take any coercive step against the employers during this period.
• On January 15, 2021, the Haryana Government had implemented the Haryana State Employment of Local Candidates Act, 2020. The law provides 75 per cent reservation in the private sector to job seekers who are 'residents of the state of Haryana'.
• After this, the High Court stayed this decision. Faridabad Industrial Association along with others had told the High Court that their employees are selected on the basis of merit. The High Court was told that if the companies are not able to choose the employees of their choice, then their business will be affected.
• It was argued on behalf of the petitioner in the High Court that if this decision of the government is implemented, then there will be anarchy regarding employment and deserving people will be deprived. The Punjab and Haryana High Court stayed this decision of the government. After this, the Haryana government challenged the decision of the High Court in the Supreme Court.
• Private companies, societies, trusts and partnership firms are also covered under this law and it also applies to jobs that provide a maximum gross monthly salary or wages up to Rs 30,000. The Central or State Governments or any organization owned by these Governments is outside the purview of the Act.