The Jharkhand High Court has imposed a stay on the implementation of a new state law mandating a 75% job reservation for local residents in private sector positions that pay up to Rs 40,000 monthly. This decision was delivered by a division bench, led by Chief Justice MS Ramchandra Rao and Justice Deepak Roushan, in response to a petition from the Jharkhand Small Scale Industries Association.
The controversial Jharkhand State Employment of Local Candidates in Private Sector Act, 2021, which the Jharkhand Assembly passed in September 2021, stipulates that employers must fill 75% of vacancies with local candidates for jobs not exceeding a Rs 40,000 monthly salary. This legislation was intended to prioritize the employment of residents from the state in the private sector, specifically targeting various social and economic groups, including those displaced by industrial development.
During the court session, AK Das, counsel for the Jharkhand Small Scale Industries Association, argued that the Act creates unconstitutional distinctions between local candidates and those from outside Jharkhand. Das emphasized that the Constitution guarantees equality of employment opportunities, a principle that this state law allegedly violates by dictating private employment practices based solely on geographic origin.
The counsel also referenced precedents set by the Punjab and Haryana High Courts, which had overturned similar laws in those states. These cases were cited to bolster the argument that private sector employment should not be subjected to stringent location-based quotas.
The High Court has now requested the Jharkhand state government to provide a detailed response to these challenges. The case is scheduled for a further hearing on March 20, where the state will defend the legality of its approach to local employment.
