The Jharkhand High Court has put a stay on the implementation of a state law that guarantees 75 per cent reservation to locals for jobs with salaries up to Rs 40,000 a month in the private sector in the state.

A division bench, comprising Chief Justice MS Ramchandra Rao and Justice Deepak Roushan, heard a petition filed by a small-scale industries association challenging the provisions of the Jharkhand State Employment of Local Candidates in Private Sector Act, 2021 on Wednesday.

As per the Act passed by the Jharkhand Assembly in 2021, every employer shall fill up 75 per cent of the total existing vacancies by local candidates with respect to such posts where the gross monthly salary or wages are not more than Rs 40,000.

Jharkhand Small Scale Industries Association counsel AK Das submitted that the enactment has created a clear division between candidates from the state and aspirants from outside Jharkhand.

Das claimed that the implementation of the Act is against the principles of the Constitution which guarantees equality in employment.

The state government cannot direct private companies with regards to employing a certain category of people only, the counsel argued.

Such issues have already been decided by the High Court of Punjab and Haryana, which has set aside a similar enactment brought by the Punjab and Haryana governments, he added.

The High Court of Jharkhand, after having heard the matter, ordered the state government to file a response to the petition and would hear it again on March 20.

The Jharkhand Assembly had, in September 2021, passed the Jharkhand State Employment of Local Candidates in Private Sector Bill, 2021 which provides for 75 per cent reservation to locals for jobs with salaries up to Rs 40,000 a month in the private sector.

The bill was earlier cleared by a select committee of the assembly with some changes.

The legislation also ensures that "during the process of employment of local candidates, attention will be given to the representation of the displaced due to the establishment of the concerned institution, local candidates of the concerned district and all classes of the society".

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