The Haryana State Employment of Local Candidates Act, 2020 (the "Act") and the Haryana State Employment of Local Candidates Rules, 2021 (the "Rules") came into effect on January 15, 2022, thereby enforcing a 75% reservation requirement in employment for local candidates (i.e., candidates domiciled in the State of Haryana) earning INR 30,000 or less.
The Act has been the subject of significant debate and opposition from local industrial associations on grounds of the Act being in violation of the constitutional rights of workers. To this end, several industrial associations and trade unions have filed petitions before the Punjab and Haryana High Court ("High Court"), challenging the validity of the law. One such petition was filed by the Faridabad Industries Association, which is pending before the High Court where the next hearing is on February 2, 2022.
The key provisions of the Act have already been discussed in our previous Infolex article which can be accessed at https://bit.ly/3nq7Uog. Recently, on January 17, 2022, the Haryana Labour Department has further released an order exempting certain categories of employers from the ambit of the Act. We have discussed these exemptions below.
The following categories of employer are exempted from the purview of the Act:
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