41 The Inter-State Migrant Workmen Act, 1979
This chapter takes up the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 — the statute that protects workers recruited in one state and brought to another by a contractor. The Act is one of the most under-enforced in Indian labour law, but its importance has grown sharply with the COVID-19 reverse-migration crisis of 2020.
41.1 Background and Genesis
The Act was prompted by the Dadan labour system in Odisha, where contractors recruited tribal labour for plantations and construction in distant states under exploitative terms. The 1976 Bhargava Committee Report documented systematic abuses; the 1979 Act gave statutory protection. The COVID-19 reverse migration of 2020 revealed the Act’s inadequate enforcement and prompted renewed attention.
| Object | What it does |
|---|---|
| Regulate employment of inter-state migrant workmen | Prevent informal recruitment networks |
| Provide conditions of service | Wages, hours, leave, journey allowance |
| Establishment registration | Both contractor and principal employer |
| Prevent malpractice | Document-based protection against contractor abuse |
41.2 Definitions — Section 2
| Section | Term | Meaning |
|---|---|---|
| 2(e) | Inter-state migrant workman | Any person recruited in one state by or through a contractor for employment in an establishment in another state, whether with or without the knowledge of the principal employer |
| 2(b) | Contractor | A person who undertakes to produce a given result for the establishment, other than mere supply of goods, by the employment of inter-state migrant workmen |
| 2(g) | Principal employer | The owner / occupier in relation to a factory; the head of the department in government work; the contracting establishment |
| 2(h) | Recruitment | Engagement on payment of wages or other remuneration |
41.3 Coverage
The Act applies to:
- Every establishment in which 5 or more inter-state migrant workmen are employed (or were employed in the preceding 12 months);
- Every contractor who employs or has employed in the preceding 12 months 5 or more inter-state migrant workmen.
The threshold of 5 is among the lowest in Indian labour law — reflecting the policy priority of protecting migrant workers.
41.4 Registration of Establishments and Licensing of Contractors
| Section | Provision |
|---|---|
| 4 | Registration of establishments employing migrant workmen — by the Registering Officer of the host state |
| 5 | Revocation of registration |
| 6 | Prohibition against employment of migrant workmen without registration |
| 7 | Application for licence by contractors — to the Licensing Officer of the host state |
| 8 | Grant of licence — subject to conditions on hours, wages, holidays, accommodation |
| 11 | Revocation, suspension and amendment of licence |
A licence to recruit and employ migrant workmen is non-transferable. The licensing system is the principal compliance mechanism of the Act.
41.5 Duties and Obligations of the Contractor — Sections 12 to 15
| Section | Duty |
|---|---|
| 12 | Furnish particulars of every migrant workman to the home-state Specifically Authorised Officer |
| 13 | Issue passbooks to every migrant workman, recording personal details, wages, hours, journey allowance |
| 14 | Pay displacement allowance equal to 50% of monthly wages or ₹75, whichever is higher, at the time of recruitment |
| 15 | Pay journey allowance including fare for outward and return journeys and wages during the period of journey |
The two financial protections — displacement and journey allowance — are the most distinctive provisions of the Act.
41.6 Wages, Welfare and Working Conditions — Sections 16 to 18
| Section | Provision |
|---|---|
| 16 | Wages — same rate as locally similarly placed workers; not less than minimum wage |
| 17 | Equal pay for equal work — no discrimination between migrant and local workers |
| 18 | Other facilities — suitable residential accommodation, medical facilities, protective clothing, drinking water, latrines, washing facilities, restroom |
The principal employer is jointly and severally liable with the contractor to ensure these provisions.
41.8 Penalties — Sections 25 to 28
| Section | Offence | Penalty |
|---|---|---|
| 25 | Recruitment without licence | Imprisonment up to 1 year or fine up to ₹1,000, or both |
| 26 | Contravention of provisions on welfare, wages, accommodation | Imprisonment up to 6 months or fine up to ₹500, or both |
| 27 | Failure to make returns or maintain registers | Fine up to ₹500 |
| 28 | Other offences | Fine up to ₹100 |
41.9 COVID-19 and the Reverse Migration of 2020
The COVID-19 lockdown of March 2020 stranded an estimated 10 to 30 million inter-state migrant workers across India, most without wages, food, accommodation or transport. The crisis revealed two failures of the 1979 Act:
- The Act covers only workers brought through contractors; the vast majority of inter-state migrants travel and work informally.
- Even where covered, registration was sparse — most contractors did not comply, and enforcement was minimal.
The Supreme Court in In re: Problems and Miseries of Migrant Labourers (2020-21) issued continuing directions on registration of migrants, food assistance, transportation home, and rehabilitation. The crisis has reshaped India’s migrant-labour policy framework.
41.10 Position under the OSH Code, 2020
The OSH Code, 2020 has subsumed the Inter-State Migrant Workmen Act and expanded its protection. Key changes:
| Element | ISMW Act 1979 | OSH Code 2020 |
|---|---|---|
| Definition of migrant worker | Only those recruited through contractor | Includes self-recruited migrants who move on their own |
| National database | None | National database of migrant workers (eShram and others) |
| Portability of benefits | Limited | Portability of social-security benefits across states |
| Journey allowance | Statutory | Continued — journey allowance once a year for visit home |
| Single registration | Separate | Single registration with other labour codes |
| Helpline | Not mandated | National helpline for migrants |
The OSH Code’s broadened definition addresses the largest gap in the 1979 Act — coverage of self-organised migration.
41.11 Practice Questions
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| Section | Content | ||
|---|---|---|---|
| (i) | §13 | (a) | Journey allowance |
| (ii) | §14 | (b) | Pass book |
| (iii) | §15 | (c) | Displacement allowance |
| (iv) | §16 | (d) | Wages — equal to local workers |
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- ISMW Act, 1979 — protects inter-state contract migrant workmen; passed after the 1976 Bhargava Committee Report on the Dadan system.
- §2(e) migrant workman — recruited in one state for employment in another through a contractor.
- Coverage: 5+ migrant workmen.
- Contractor must obtain licence (§7); establishment must be registered (§4).
- Key duties: §12 particulars, §13 passbook, §14 displacement allowance (50% wages or ₹75), §15 journey allowance, §16 wages = local rate, §18 accommodation, medical, drinking water, latrines, washing.
- Principal employer is jointly and severally liable with the contractor.
- COVID-19 (2020) revealed gaps; Supreme Court directions in In re: Problems and Miseries of Migrant Labourers.
- OSH Code 2020 broadens to include self-recruited migrants, mandates national database (eShram), introduces portable benefits, single registration, journey allowance once a year for visit home.