Ficci says Haryana job quota law will ‘spell disaster’ for industrial development

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New Delhi: Industry body Ficci on March 4 said the Haryana government’s new legislation that provides reservation in private jobs for local candidates will “spell disaster” for industrial development in the state.

Ficci President Uday Shankar said the government’s 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.

Further, the industry body said it believes that this move is against the spirit of the Constitution that gives the citizens of India the freedom to work anywhere in the country.

Anupam Varma, partner at law firm J Sagar Associates, said the vesting of authority in a state government to decide the qualification, and skill, etc. of employees of a private employer will be inimical to the ease of doing business initiatives of the central government.

“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 of India.

“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-19 pandemic might result in an exodus of investors from the state,” Varma said.

On March 3, industry body CII urged the Haryana government to “re-look” at the legislation, saying reservation impacts productivity and competitiveness.

Haryana Governor Satyadeo Narain Arya has given 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 local people, the state government has said the law will discourage the influx of migrants seeking low-paid jobs, which has a significant impact on local infrastructure and leads to the proliferation of slums.