Wrong solution: On urban-rural divide and reservation.

February 19, 2022

Syllabus: General Studies Paper 2

Context

The Supreme Court has recently asked the Punjab and Haryana High Court to decide within four weeks the validity of the Haryana law mandating 75% reservation for local candidates in private sector jobs that pay up to ₹30,000 a month.
The apex court set aside an interim stay order granted by the High Court, because the stay was granted without assigning reasons.
- It is a settled principle that legislation cannot be stayed unless there is a preliminary finding that it is unconstitutional or suffers from any glaring illegality.
Other states with similar bills-Andhra Pradesh and Jharkhand have also introduced such laws, while the ruling DMK in Tamil Nadu had promised 75% reservation in its election manifesto for last year’s Assembly polls.

Reasons for such legislations

Given the bleak employment situation in the backdrop of the reported loss of millions of jobs during the pandemic, it is no surprise that the leadership in every State seeks to find employment opportunities for its youth.
In some States, employers may find it cheaper to use the services of those from a faraway State, while in others there may be an acute shortage of labour within the local population.

Issues

There are quite a few issues that arise when the State introduces a quota in the private sector, especially if it is based on a domicile norm.
The first hurdle that a law such as the Haryana State Employment of Local Candidates Act will face is the constitutional bar on discrimination on the basis of place of birth or residence.
Even though the Constitution allows the Government to prescribe a residential criterion for employment to public posts, it is doubtful whether such a measure can be extended to the private sector. In the Haryana case, it covers companies, societies, trusts, partnership firms and individual employers.
- The industry may feel aggrieved that the residential requirement may adversely affect the hiring of talent from outside Haryana.
From an individual point of view, the law may impinge on –
- the freedom of movement,
- the right to reside and settle in any part of the country, and
- the right to carry on any occupation.
Of course, the Act provides for exemption to any employer if an adequate number of local candidates are not available in terms of skill, qualification and proficiency.
And there is a sunset clause: the Act will cease to operate in 10 years.

Way forward

Beyond the question of legality, what is flagged by such developments is the state of the economy, especially the labour economy. Rapid urbanisation and the agrarian situation are behind large-scale migration in search of employment.
The real issue to address is the widespread disparities between urban and rural areas, between advanced States and backward ones.

The Hindu Link

Question- Reservation in jobs in private sector on the basis of state domicile is riddled with constitutional challenges. Elucidate.