The stay by the Punjab and Haryana High Court on the Haryana State Employment of Local Candidates Act provides another opportunity to have a relook at the contentious legislation. From January 15, those having state domicile were entitled to 75 per cent reservation in private sector jobs with a monthly salary of less than Rs 30,000. The political compulsions and the urgency shown in moving the Supreme Court against the ruling notwithstanding, the Khattar government would be doing itself a favour by not ignoring the sentiment of the industry, which has vehemently opposed the provisions and thrown up a legal challenge. Instead of hardening of positions and an escalation of distrust, reaching out and formulating a middle path could still prevent a setback in the form of a flight of capital.
Large-scale unemployment is a major issue confronting state governments and for those in power, legislation such as this carries the potential to cover the tracks of failure in generating job opportunities. In Haryana, even attempts at government recruitment have hit various roadblocks. The trade and industry associations in the state, though, have strongly pleaded that the binding condition of jobs for locals infringes upon the constitutional rights of employers, is anti-business and downplays merit in favour of unsuitable candidates.
The state government had shown flexibility by lowering the upper salary limit from Rs 50,000, and exempting IT units and start-ups set up after January 15 from hiring locals under the law for two years. But if these steps have failed to allay apprehensions, Haryana needs to engage the industry and come up with better options that serve the purposes of job creation and optimum skilling, like opening training facilities and offering courses linked with industrial units. A forcible implementation that leads to relocation of business establishments from the state in the near future is a futile, counter-productive exercise.
