On Monday  the Supreme Court of India issued notice in the  plea filed by the Haryana government challenging the Punjab and Haryana High Court's decision to strike down a law reserving 75 percent of private job positions for local candidates within the state.

The bench comprising Justices Aravind Kumar and PS Narasimha, after hearing the plea, has assured that the matter will be listed for final disposal soon, indicating the gravity and urgency with which it is being addressed.

The genesis of the legal battle traces back to the enactment of the Haryana State Employment of Local Candidates Act, 2020, championed by the coalition government of the Bharatiya Janata Party and the Jannayak Janta Party. Spearheaded by Haryana Deputy Chief Minister and JJP leader Dushyant Chautala, the law aimed to address local employment concerns by mandating a 75 percent reservation for local youth in private sector jobs with a monthly salary of less than ₹30,000, effective from January 15, 2022.

However, the law faced immediate legal challenges, with its validity being questioned before the Punjab and Haryana High Court. In February 2022, the High Court stayed the implementation of the law pending a decision on its legality. While the Supreme Court later lifted the stay order, it directed the government not to take coercive steps against private-sector employers for non-compliance until the matter was resolved by the High Court.

In November 2023, the Punjab and Haryana High Court delivered its verdict, striking down the law on the grounds that it encroached upon national interest and undermined the authority of the Union government. The court emphasized that state legislatures cannot exercise powers that adversely affect national interests or interfere with the authority of the central government. Moreover, it cautioned against the creation of "artificial walls" through state enactments that could disrupt the national economic fabric.

The Haryana government, dissatisfied with the High Court's decision, has now approached the Supreme Court seeking redress. Solicitor General Tushar Mehta, representing the Haryana government, argued before the apex court, questioning the rationale behind the High Court's judgment and pressing for an early resolution of the matter, citing its urgency.

While the state government contends that the law is essential for addressing local unemployment concerns, opponents argue that such legislation could create barriers to free movement of labor and impede the functioning of a unified national job market.

Case: State of Haryana vs Faridabad Industries Association and anr.