The Jharkhand High Court has put on hold the implementation of the Jharkhand State Employment of Local Candidates in Private Sector Act, 2021. The law mandates 75 per cent reservation for local candidates in private sector jobs.

A division bench comprising Chief Justice MS Ramchandra Rao and Justice Dipak Roshan passed the order while hearing a petition filed by Inder Agarwal, president of the Adityapur Small Industries Association.

The next hearing in the case is scheduled for March 20, 2025, and the court has directed the state government to submit its response.

The petitioner’s counsel argued that the law violates the constitutional right to equality and hinders the ease of doing business, describing it as discriminatory. The counsel also pointed out that a similar law in Punjab and Haryana had previously been struck down by the respective High Court.

This decision is seen as a setback for the state government, which had championed the legislation aimed at promoting employment for locals in private enterprises.

The Jharkhand State Employment of Local Candidates in Private Sector Act, 2021, was enacted to ensure 75 per cent reservation for locals in jobs offering a monthly salary of up to Rs 40,000. However, critics argue that such laws create divisions and pose challenges to businesses operating in the state.