The Supreme Court on Thursday set aside a high court stay on the Haryana government law making it mandatory for private companies to provide 75 per cent jobs to residents of the state.

The top court made it clear that it was not dealing with the merit of the matter. The stay is being lifted because no reason was cited by Punjab and Haryana Court for keeping the law in abeyance, the Supreme Court said.

It advised the high court to decide within a month whether the law is valid or not.

The Supreme Court bench of Justices L. Nageswara Rao and P.S. Narasimha said the Haryana government must not take any coercive steps against employers until further orders.

The quota had been assailed by corporates as being unconstitutional and anti-federal.

“But primarily, we are concerned about livelihood of the people. We are on the issue of livelihood of the people,” the Supreme Court bench remarked when solicitor-general Tushar Mehta, appearing for the Haryana government, said the law was enacted to regulate migrants from settling in other states.

Mehta said the law applied only to those earning a salary of Rs 30,000 and it was not for high-paid jobs.

The Supreme Court disposed of a special leave petition filed by the Haryana government for setting aside the February 3 high court order.

Business outfits led by the Faridabad Industrial Association had challenged the 75 per cent reservation for domiciled persons in the high court.

The Haryana State Employment of Local Candidates Act provides for mandatory reservation of 75 per cent jobs for those domiciled in Haryana in all private companies, partnership firms and limited liability partnership firms. There was no such reservation in the government sector.

During Thursday’s hearing, Mehta pointed out that similar legislation had been passed in four other states. The Supreme Court asked whether all the cases pending in different high courts should be transferred to it for an authoritative pronouncement.

Mehta said he would move a formal application for the transfer of the cases.

Senior advocate Dushyant Dave, appearing for the Faridabad association, said he too can move a transfer application for adjudication of the issue by the top court.

Dave said as an example that even a law firm in Gurgaon would be affected by the Haryana government’s decision as it would not be able to employ juniors from other states unless it hired 75 per cent staffers from the state.

Additional reporting from PTI