Risk Radar Newsflash | Haryana State Employment of Local Candidates Act, 2020: Implications and Key Takeaways

The Government of Haryana, India, implemented a new law on reservation in the private sector, the Haryana State Employment of Local Candidates Act, 2020, from January 15, 2022, mandating 75% reservation of jobs in the private sector for locals. Industry bodies and activists criticized the act on the grounds that it would make hiring difficult and increase difficulties in doing business in the state, which could impact the state’s growth and overall attractiveness for new investments. On February 3, 2022, the Punjab and Haryana high court stayed the act after several industrial bodies filed a petition challenging its validity. In response, the Haryana government moved the country’s apex court, the Supreme Court, challenging the high court’s stay order, and is awaiting the court’s verdict.

This Risk Radar assesses the potential implications of this law on IT-BPM service providers and GBS centers in Haryana (Gurgaon) or those considering setting up delivery centers in Haryana.