Hindu Editorial Analysis : 22-November-2023
Recently, the Punjab and Haryana High Court made a significant decision, quashing the Haryana State Employment of Local Candidates Act, 2020, which mandated a 75% job quota for locals in the private sector. This decision raises questions about the rationale behind such legislation, its impact on the labor market, and the potential repercussions on the economy.
Overview of the Act:
The law aimed to allocate 75% of new jobs in privately managed entities to local candidates with salaries below ₹30,000 per month in Haryana. Similar legislation exists in states like Andhra Pradesh and Jharkhand.
Rationale Behind Legislation:
- Shift of Jobs: Resentment among locals due to perceived job loss to migrant workers.
- Segmentation of Labor Market: Exploitation of migrant labor by some employers, leading to a segmented labor market.
- Responsibility of Private Players: Concerns about the private sector not fulfilling constitutional responsibilities, particularly in the post-liberalization era.
- Role of Privatization: Fear that privatization may adversely affect opportunities for historically marginalized groups.
Court’s Judgment:
- Beyond State’s Purview: The court held that legislating job quotas for locals was beyond the state’s authority.
- Violative of Rights: The Act was deemed unconstitutional as it violated equality and freedom guaranteed under Articles 14 and 19.
- Unreasonable Restrictions: The court argued that the Act imposed unreasonable restrictions on workers’ mobility across India.
Criticisms and Implications:
- Affecting Economy: Restricting job mobility can negatively impact the national economy.
- Pressure on the Poor: Such laws may disproportionately affect poor migrants seeking better opportunities.
- Creation of Anti-Migrant Sentiment: Nativist legislation contributes to an anti-migrant sentiment, aggravated by environmental concerns and climate change.
Why In News
Recently, the Punjab and Haryana High Court quashed a law providing 75% quota to locals in the private sector, emphasizing the need for a balanced approach that ensures equal opportunities while considering the broader implications on economic growth and diversity.
MCQs about Assessing the Repeal of Local Job Quotas
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What was the primary focus of the Haryana State Employment of Local Candidates Act, 2020?
A. Providing tax incentives to local businesses
B. Ensuring job quotas for locals in the private sector
C. Regulating environmental standards for private companies
D. Encouraging foreign investment in Haryana
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According to the court’s judgment, why was the Haryana job quota law deemed unconstitutional?
A. It violated the right to free speech
B. It contradicted the principles of federalism
C. It infringed on the right to equality and freedom
D. It interfered with the right to bear arms
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What was a key criticism of the job quota legislation ?
A. It encouraged fair competition in the job market
B. It addressed environmental concerns related to job creation
C. It disproportionately affected poor migrants seeking employment
D. It promoted inclusive economic growth
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Why did the court argue that the Act was unconstitutional in terms of workers’ mobility?
A. It restricted workers from taking breaks during working hours
B. It imposed unreasonable restrictions on workers’ right to move freely across India
C. It allowed private employers to discriminate based on caste
D. It mandated higher wages for local workers
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