The Supreme Court on Thursday set aside a Punjab and Haryana High Court order granting an interim stay on a Haryana law providing 75 per cent quota in private sector jobs for residents of the state.

A bench of justices L Nageswara Rao and Pamidighantam Sri Narasimha also directed the Haryana government not to take coercive action against employers.

"We do not intend to deal with merits of matter as we propose to request the high court to decide expeditiously and not later than four weeks. Parties are directed not to seek adjournment and be present before court for fixing the schedule for hearing.

"In the meanwhile, Haryana is directed not to take coercive action against employers. The impugned order passed by the high court is set aside as the high court has not given sufficient reasons for staying the legislation," the bench said.

Solicitor General Tushar Mehta appeared for the Haryana government.

The order came on an appeal filed by the Haryana government challenging the Punjab and Haryana High Court order granting an interim stay on its law providing 75 per cent quota in private sector jobs for residents of the state.

The high court, had on February 3, granted the interim stay on the Haryana government law based on pleas filed by various industry associations from Faridabad and other bodies in the state, including in Gurugram.

Dushyant Dave, arguing for the Faridabad Industries Association, said the law would have "far-reaching implications", including the threat of small private sector firms being forced to shut due to lack of sufficient candidates for reserved jobs, added ndtv.com.

Dave elaborated that private hospitals could be hampered owing to presence of employed nurses from Kerala. He added that the Haryana government's claim - that 900 firms had registered under the law - "means nothing" because there were over 45,000 private companies in the state.

Shyam Divan, who fought for Manesar Industries Welfare Association, pointed out, "Industries will suffer... this affects the idea of India as an economic unit."

The Haryana State Employment of Local Candidates Act, 2020, was passed in November in 2020, and it is applicable to jobs "offering a maximum gross monthly salary or wages of Rs 30,000,: added ndtv.com.

It was implemented on January 15, following which Deputy Chief Minister Dushyant Chautala referred to it as open new avenues of employment for thousands of young men and women in the Haryana.