Answer: Recently, the State Government of Haryana provided for 75% reservation to locals in private sector jobs that offered a monthly salary of less than Rs. 30,000. This move is seen as a contravention of Article 14 and Article 16 of the Constitution pertaining to the Right to Equality and Article 19 pertaining to the Right to Freedom. However, these objections to domicile based reservation laws in the private sector on grounds of Constitutional equality and freedom are misplaced as:

• Article 14 allows classifying the people into two groups if such classification is reasonable and is made to achieve specific ends. The only condition is that the classification must not be “arbitrary, artificial or evasive”. It must always rest upon some real and substantial distinction bearing a just and reasonable relation to the object sought to be achieved by the legislation.
• In D.P Joshi vs. State of Maharashtra (1955) case, the SC held that Article 15 does not bar domicile-based reservation. Further, Article 16 provides protection only in public employment and not private employment.
• Article 19 does not provide absolute freedom to private companies against the State’s regulations upon their business activities. By virtue of Article 19(6), the State can impose “reasonable restrictions” on trade, business, occupation or profession in “the interests of the general public”.
• The Government of Haryana had argued that the law merely makes “geographical classification”, which is permitted under the Constitution. It is to protect the right to life/livelihood of people domiciled in the state and to protect their health, living conditions and their right to employment.

On the other hand, there is a need to take into consideration some objections before implementing domicile-based reservation:

• Fuels sons-of-the-soil syndrome: Employment is one of the principal reasons behind migration and shutting the doors on employment to non-domiciles would be a gross violation of not just the Fundamental Rights of citizens but would also open a Pandora’s box where other states might follow suit.
• Stifle the labour market: Such reservation may push businesses to migrate, as their skilled workforce is not sufficiently ‘local’. Additionally, smaller entities may find it difficult to carry on, once the new law comes into force due to increased compliance costs.
• Revival of license raj: Many experts believe that allowing reservations in the private sector would be akin to nationalization of the private sector and it would result in the revival of license-raj.

The rise in regional inequalities (east vis-a-vis west and south) since the 1990s has deepened social divisions, with migration largely headed towards the western and southern states where infrastructure is better developed. The setting up of educational and skills institutions in backward areas can bridge this gap. Also, the concept of equality under the Constitution is a dynamic concept. Therefore, it is necessary to take into account de facto inequalities that exist in the society, and to take affirmative action by way of giving preference to the socially and economically disadvantaged persons to bring about real equality.