Punit_20_LL-II
Punit_20_LL-II
Abstract ............................................................................................................................................... 3
Introduction ....................................................................................................................................... 3
Conclusion ....................................................................................................................................... 16
ABSTRACT
The Economic Survey of India 2017 reveals that interstate migration in India averaged nearly
9 million per year between 2011 and 2016. The challenges faced by these interstate migrant
workers were highlighted during the country’s first lockdown, exposing flaws and
shortcomings in the Inter-State Workmen’s (Regulation of Employment and Conditions of
Service) Act, 1979. The laws governing interstate migrant workers have since undergone
significant revisions with the introduction of new labor codes. The Occupational Safety,
Health, and Working Conditions Code, 2019, now includes provisions from the Inter-State
Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979.
This article aims to evaluate the inadequacies of the previous legislation, specifically the Inter-
State Migrant Workmen (Regulation of Employment and Conditions of Service) Act. It
compares the provisions in the new code with those of the old Act to identify the most
significant changes affecting interstate migrant workers. The article focuses on key issues that
should have been addressed by the new labor laws, as well as the highlights and drawbacks of
its provisions for interstate migrant workers
INTRODUCTION
The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act,
1979 (30 of 1979) constitutes legislation enacted by India's Parliament to govern the
employment framework for inter-state migrant workers, establish their service conditions, and
address related matters.
Section 1(4) of the Act delineates its applicability to: establishments employing five or more
inter-State migrant workmen (whether supplementary to other workers or not) on the date of
application or any day during the preceding twelve months; and contractors engaging five or
more inter-State migrant workmen (whether supplementary to other workers or not) on any day
of the preceding twelve-month period.
Enforcement responsibility for the provisions contained within the Inter-State Migrant
Workmen (Regulation of Employment and Conditions of Service) Act, 1979, is allocated
between the Central Government and the respective State Governments/Union Territories for
establishments falling within central and state jurisdictions, respectively.1
When the COVID-19 pandemic transformed the hardships of migrant workers into what many
characterize as an unprecedented humanitarian crisis, the government proceeded, without
expressing apparent contrition, to repeal the Inter-State Migrant Workmen (Regulation of
Employment and Conditions of Service) Act, 1979 (ISMW Act, 1979) by incorporating its
provisions into the Occupational Safety, Health and Working Conditions Code, 2020 (OSHWC
Code).2
The Labor Law Codification initiative purports to eliminate definitional redundancies and
overlapping authorities, thereby facilitating compliance while ostensibly maintaining worker
protections regarding wage and social security. Historically, the Minimum Wages Act and
Payment of Wages Act failed to encompass a substantial portion of the workforce due to their
limited applicability to Scheduled Employments/Establishments. The newly introduced Code
on Wages, however, proposes to ensure universal minimum wage protection and timely
remuneration for all employees across employment sectors without wage ceiling restrictions.3
Throughout India, an exploitative labor practice became deeply entrenched involving the
recruitment of migrant workers across state boundaries. This practice was particularly
institutionalized in Orissa and several other Indian states. Major construction projects in states
such as Orissa utilized migrant laborers—locally designated as "dadan labour"—who were
dispatched from their home states by intermediaries known as sardars or khathedars.
1
Niti Samani, Inter-State Migrant Workmen Act, DESKERA (March 25, 2025 7:30 PM),
https://www.deskera.com/blog/inter-state-migrant-workmen-act/
2
R. Karumalaiyan, Restore Inter-State Migrant Workmen Act, People’s Democracy (March 25, 2025, 7:45
PM), https://peoplesdemocracy.in/2021/1017_pd/restore-inter-state-migrant-
workersact#:~:text=DURING%20the%20pandemic%20when%20the,amalgamating%E2%80%9D%20it%20wit
h%20the%20Occupational.
3
CS Anuj Malik, All Labour Laws to Be Repealed by Labour Codes, LexComply (March 25, 2025, 7:50 PM),
https://lexcomply.com/blog/all-labour-laws-to-be-repealed-by-labour-codes/.
During the recruitment process, the Sardar would commit to compensation for workers on a
piece-rate basis. However, the system's inherent vulnerabilities to manipulation resulted in
frequent breaches of these commitments, with migrant workers often denied the monthly
compensation originally promised.
The exploitation within this system reached such extremes that workers, once under a
contractor's control, would be transported to remote work sites for merely the cost of railway
passage. Furthermore, scant attention was paid to regulating working hours for these migrant
laborers, who were frequently compelled to work seven days weekly under deplorable
conditions.
On October 21, 1976, the 28th State Labor Ministers Conference proposed the formation of a
specialized committee to examine comprehensively the issues concerning interstate migrant
workers. The committee was tasked with recommending interventions to mitigate and
ultimately eliminate the prevalent abuses in the deployment of interstate workers.
This specialized committee, established in February 1977, advocated for distinct central
legislation specifically governing the employment conditions of interstate migrant workers.
This recommendation stemmed from the determination that the Contract Labour (Regulation
and Abolition) Act of 1970, even with potential amendments, remained inadequate to address
the diverse malpractices perpetrated by contractors, principal employers, Sardars, Khatedars,
and affiliated parties.
RESTRICTIVE SCOPE
The Act's application extends to establishments employing five or more interstate migrant
workers on any day during the preceding twelve-month period, regardless of whether these
workers supplement the local workforce. However, a critical limitation arises from the Act's
definition of interstate workers, which encompasses only those engaged through contractors.
This definitional constraint automatically excludes workers who secure employment through
direct means without contractor intermediation, significantly narrowing the Act's protective
reach.
Following economic liberalization in 1991, interstate migration for employment purposes has
witnessed substantial growth. Survey evidence indicates approximately 20 million workers
migrated across state boundaries for employment in 1991, with this figure doubling to 40
million by 2001. This dramatic increase has created considerable challenges in governmental
data collection efforts. Despite the Act's requirement that contractors furnish information
regarding migrant workers, implementation has proven largely ineffective. Further
complicating matters, numerous workers engaged through contractors are deliberately
misclassified as local labor to circumvent procedural requirements. The transient nature of this
workforce additionally hinders systematic data collection. Absent reliable data, governmental
authorities cannot provide essential facilities to these workers, who simultaneously remain
beyond the Act's protection due to registration requirements.
4
Niti Samani, Inter-State Migrant Workmen Act, DESKERA (May 25, 2024 8:00 PM),
https://www.deskera.com/blog/inter-state-migrant-workmen-act/.
IMPLEMENTATION DEFICIENCIES
While the Act establishes numerous protective mechanisms for interstate migrant workers,
practical implementation has been demonstrably inadequate. For example, Section 122
obligates contractors to provide comprehensive information concerning the migrant workers
under their employ. However, to evade procedural obligations, contractors frequently
categorize interstate workers as local contract laborers, thereby withholding relevant
information. Consequently, despite explicit responsibilities imposed on contractors and
principal employers regarding data provision and social security arrangements, these
requirements are routinely disregarded. The penalties prescribed for non-compliance lack
sufficient deterrent effect to compel contractors or principal employers to adhere to statutory
provisions.
GENDER-SPECIFIC OMISSIONS
In this seminal case, while primarily addressing bonded labor concerns, the Supreme Court
emphasized fundamental rights of laborers, including those who migrate across state
5
Bandhua Mukti Morcha v. Union of India, (1984) 3 SCC 161 (India)
boundaries. The Court articulated the necessity for effective implementation of labor
legislation, specifically highlighting provisions governing interstate migrant workmen's
conditions. The judgment reinforced the state's obligation to safeguard vulnerable worker
populations through proper enforcement mechanisms.
Commonly referenced as the Asiad Workers' case, this litigation examined exploitation
practices affecting workers engaged in construction of Asian Games facilities. The Supreme
Court's pronouncement emphasized mandatory compliance with labor regulatory frameworks,
expressly including the Inter-State Migrant Workmen Act, as fundamental to preserving
workers' constitutional rights. The Court established that governmental authorities must ensure
contractual arrangements do not circumvent statutory labor protections.
This case scrutinized labor conditions at the Salal Hydro Project, with particular focus on
migrant workforce treatment. The Supreme Court issued specific directives mandating strict
adherence to Inter-State Migrant Workmen Act provisions to safeguard migrant laborers'
welfare. The Court emphasized that infrastructure development projects cannot proceed at the
expense of statutory worker protections.
This litigation illuminated the precarious situation of construction sector workers, a substantial
proportion of whom constitute interstate migrants. The Supreme Court underscored
enforcement imperatives regarding labor legislation, specifically referencing the Inter-State
Migrant Workmen Act as critical to construction worker protection. The judgment highlighted
systematic implementation failures affecting this particularly vulnerable employment sector.
6
People’s Union for Democratic Rights v. Union of India, (1982) 3 SCC 235 (India)
7
Salal Hydro Project v. State of Jammu & Kashmir, (1983) 2 SCC 181 (India)
8
Nat’l Campaign Comm. for Cent. Legislation on Constr. Labour v. Union of India, W.P.(C) No. 318 of 2006
(India).
This contemporary case emerged from the unprecedented hardships confronted by migrant
workers during COVID-19 lockdown measures. The Supreme Court, exercising suo motu
jurisdiction, addressed the crisis and directed central and state governmental authorities to
implement comprehensive relief and support mechanisms for interstate migrant workers. The
Court's intervention emphasized substantial deficiencies in existing statutory implementation
frameworks, including the Inter-State Migrant Workmen Act, thereby highlighting the
legislation's practical limitations during humanitarian crises.
Parliament of India, during its 2019 and 2020 sessions, enacted four comprehensive labor codes
based on recommendations from the National Commission on Labour. These codes
systematically consolidate 44 preexisting labor laws into a more structured regulatory
framework. The four codes comprise: The Industrial Relations Code 2020, The Code on Social
Security 2020, The Occupational Safety, Health, and Working Conditions Code 2020 (OSHW
Code), and The Code on Wages 2019.
The provisions previously contained within The Inter-State Migrant Workmen (Regulation of
Employment and Conditions of Service) Act, 1979, have been subsumed predominantly into
the OSHW Code and partially into The Social Security Code, 2020. Chapter XI, Part II of the
OSHW Code specifically addresses regulatory matters concerning interstate migrant workers.
The majority of provisions from the 1979 Act have been incorporated into the OSHW Code.
Notably, the Code explicitly establishes its applicability to establishments employing ten or
more interstate migrant workers, or those that employed such workers on any day during the
preceding twelve months. This constitutes a significant modification from the original Act,
which established the applicability threshold at five or more interstate migrant workers.
DEFINITIONAL EVOLUTION: INTER-STATE MIGRANT WORKMAN
(COMPARATIVE ANALYSIS BETWEEN THE ACT AND THE NEW LABOUR CODE)
Under the Act's Section 2(e), an inter-state migrant workman was defined as "any person who
is recruited by or through a contractor in one state under an agreement or other arrangement
for employment in an establishment in another state whether with or without the knowledge of
the principal employer."
By contrast, Section 2(zf) of the Occupational Safety, Health and Working Conditions Code,
2020 (OSHWC Code) defines an inter-state migrant worker as a person employed in an
establishment who: (i) Has been recruited directly by the employer or indirectly through
contractor in one State for employment in such establishment situated in another State; or (ii)
Has come independently from one State and secured employment in an establishment of
another State (hereinafter referred to as destination State) or has subsequently changed the
establishment within the destination State, under an agreement or other arrangement for such
employment and receives wages not exceeding eighteen thousand rupees per month or such
higher amount as may be subsequently notified by the Central Government.
Additionally, under Section 2(m) of the Code, which provides the definition of 'contract labour,'
inter-state migrant workmen are explicitly included within this category.
Therefore, through comparative analysis of both definitions and their respective inclusions, it
becomes evident that the definitional scope of inter-state migrant workmen has been
substantially expanded by the Occupational Safety, Health and Working Conditions Code,
2020.
The Inter-State Migrant Workmen Act mandates that principal employers of covered
establishments submit registration applications in triplicate using Form No.01 to the designated
registering officer, accompanied by prescribed fees. Upon receipt and approval of the
application, the registering officer issues a registration certificate in Form-II in accordance with
the interstate migrant worker act regulations applicable in that state.
In cases of delayed application submission, the registering officer retains discretionary
authority to consider applications after the stipulated deadline upon determination of
reasonable cause for delay. Within one month following receipt of the registration application
under subsection (1), the registering officer shall:
Register the establishment and, provided the application satisfies all requirements, issue a
certificate of registration in the prescribed format to the principal employer of the establishment
(Paragraph 2-a); or return the application to the principal employer if incomplete (Paragraph
2-b).
However, if within the one-month period following receipt of a registration application under
subsection (1), the registering officer neither grants the registration certificate under clause (a)
nor returns the application under clause (b), the registering officer must register the
establishment and issue the principal employer a certificate of registration in the prescribed
format within fifteen days of receiving a subsequent application from the employer.
Establishments falling within the purview of the Occupational Safety, Health, and Working
Conditions Code, 2020, are required to electronically register with designated registering
officers appointed by either Central or State Government within 60 days following Code
implementation. Furthermore, certain categories of establishments, including factories, mines,
and those employing specific worker groups such as beedi and cigar workers, may be subject
to additional licensing requirements to legally operate.9
9
The Occupational Safety, Health and Working Conditions Code, 2020, No. 37 of 2020, Labour (May 26, 2024,
3:30 PM), https://labour.gov.in/whatsnew/occupational-safety-health-and-working-conditions-code-2020-no37-
2020.
Interstate migrant workers possess specific entitlements beyond general labor protections
applicable to all workmen, namely:
1. Compensation at either the prescribed minimum wage under the Minimum Wages Act,
1948, or remuneration equal to or exceeding that provided to local laborers for
comparable work and duration, whichever amount is greater.
2. A displacement allowance payable at recruitment equivalent to either Rs. 75 or 50% of
the worker's prospective monthly earnings. This allowance constitutes a supplemental
payment beyond regular wages and other entitlements and remains non-refundable.
3. A journey allowance no less than the transportation costs for an interstate migrant
worker traveling between their residence and employment location in another state.
This allowance must cover both outbound and return journeys. Additionally, the
interstate migrant worker must receive compensation during travel periods equivalent
to regular duty pay.
4. Suitable working conditions appropriate to their circumstances.
5. Mandatory provision of residential accommodations and free medical care services.
6. Right to employment termination without adverse consequences following completion
of the contractual period.
7. Authority to file complaints with appropriate authorities within three months following
incidents or accidents.
8. Entitlement to regular and timely wage disbursement.
9. Right to equal compensation for equal work regardless of gender.
10. Access to prescribed protective clothing appropriate to their employment conditions.
11. Mandatory reporting requirements in cases of serious bodily injury or fatal accidents
involving interstate migrant workers to designated authorities in both states and to the
worker's next of kin.
Every contractor or employer of an establishment engaging migrant labor from other states
bears the following obligations:
To facilitate benefit portability for interstate migrant workers engaged in building or other
construction projects, the destination state where such workers are employed must contribute
to the building and other construction cess fund.10
The Code restricts contract labour employment in core activities of establishments, with
specific exceptions permitting principal employers to engage contract labour through
contractors for core activities under the following circumstances:
10
Naina Bhardwaj, The OSH Code, 2020: A Primer, India Briefing (May 26, 2024, 5:00 PM),
https://www.indiabriefing.com/news/the-occupational-safety-health-working-conditions-osh-code-2020-a-
primer-31265.html/
• When activities do not necessitate full-time workers for the majority of working hours
daily or for extended periods
• During circumstances involving sudden volume increases in core activities requiring
completion within specified timeframes
Application Parameters
The Occupational Safety, Health, and Working Conditions Code, 2020 mandates both central
and state governments to maintain comprehensive records detailing inter-state migrant workers
through a dedicated portal. The Code enables self-registration for inter-state migrant workers
through the portal using self-declaration and Aadhaar verification.11
Additionally, the Code establishes a Social Security Fund specifically designed for
unorganized workers' welfare. Financial resources for this fund derive primarily from penalties
collected under the Code (including amounts obtained through compounding). The legislative
framework authorizes government prescription of additional funding sources for the Fund.
The two principal codes addressing informal sector workers in India are:
11
Abhishek Angad, Why Migrant Workers’ Issues Recur: The Absence of Data and Coordination Between
States, Indian Express (May 26, 2024, 5:30 PM), https://indianexpress.com/article/explained/explained-
law/migrantworkers-issues-data-absence-states-coordination-8482113/.
• Occupational Safety, Health, and Working Conditions Code, 2020 (OSHC)
While the definitional scope of inter-state migrant workers has expanded to encompass self-
initiated interstate migrants alongside contractor-recruited workers, both OSHS and CSS have
elevated the applicability threshold for establishments or contractors to ten inter-state migrant
workers, doubling the previous requirement. This threshold modification effectively excludes
millions of migrant workers employed by smaller enterprises from accessing code benefits.
Consequently, despite broader definitional coverage, practical protections have diminished.
Furthermore, intra-state migrants, constituting the majority of India's migrant workforce,
remain without specific legislative provisions.
The revised regulatory framework imposes mandatory registration requirements for interstate
migrant workers at both central and state governmental levels. This facilitates comprehensive
data collection regarding interstate migrant worker populations and their originating locations,
enabling more effective governmental planning and crisis management for situations
resembling COVID-19. Although the Inter-State Migrant Workmen Act, 1979 contained
limited provisions for similar registration, implementation remained largely ineffective.
The OSCH permits migrant workers to register directly with state authorities using Aadhaar
credentials and telephonic authentication. However, this approach problematically presupposes
universal access to smartphones and Aadhaar documentation among migrant populations.
The revised framework introduces public distribution system portability, affording migrant
workers the option to receive ration entitlements either in their origin or destination states.
However, comprehensive implementation necessitates unprecedented coordination between
various state governments, central authorities, and the migrant communities themselves, with
limited success currently demonstrated across few states. Additionally, effective
implementation requires comprehensive, accurate, and expeditiously updated migrant data
collection at central and state governmental levels.
Finally, rather than excessive centralization, state-specific challenges and requirements must
be accommodated to ensure these provisions effectively address interstate migrant workers'
needs and promote their holistic welfare.
CONCLUSION
Interstate migrant workers represent one of India's most marginalized populations, frequently
lacking fundamental facilities and sustainable livelihoods. The migrant crisis during the initial
COVID-19 lockdown illuminated their profound hardships and emphasized the necessity for
legislative reform governing interstate migrant labor. While The Inter-State Migrant Workers
(Regulation of Employment and Conditions of Service) Act, 1979 established various
protective measures and benefits, implementation inadequacies prevented realization of its
primary objectives.
The introduction of new labor legislation presented a crucial opportunity for regulatory reform
affecting interstate migrant workers. The Occupational Safety, Health, and Working
Conditions (OSHW) Code incorporated provisions from the 1979 Act with certain
modifications. While addressing specific deficiencies in the original legislation—such as
increasing establishment applicability thresholds to ten or more interstate migrant workers and
introducing portable public distribution systems—the OSHW Code demonstrates limitations
in other crucial areas. These include exclusion of intrastate migrant workers and those
employed within the unorganized sector, alongside restrictions affecting portable PDS
implementation. Although the interstate migrant worker provisions within the OSHW Code
introduce necessary reforms, effective implementation remains essential to ensure these
vulnerable workers receive their statutory entitlements and protections.
BIBLIOGRAPHY
STATUTES
WEBSITES
• www.labour.gov.in
• www.manupatra.in
• www.mospi.com