Inter-State Migrant Workmen Act, 1979: Legal Status, OSH Code Changes and Compliance
Table of Contents
On 21 November 2025, the Central Government brought the four new labour codes into effect. Subsequently, in May 2026, the Centre notified the Occupational Safety, Health and Working Conditions (Central) Rules, 2026. The OSH Code, 2020 has replaced the Inter-State Migrant Workmen Act, 1979. The Code also extends protection to directly recruited and self-migrated workers. This guide includes an overview of how the old law worked, what has changed under the OSH Code, and what employers, contractors and workers must do now.
Key Takeaways
- The Inter-State Migrant Workmen Act, 1979 is repealed with effect from 21 November 2025.
- The OSH Code, 2020 now governs inter-State migrant workers.
- The Code covers direct, contractor, and self-employed migrant workers earning up to ₹18,000 per month.
- The inter-State migrant worker provisions apply to establishments employing 10 or more such workers.
- Employers pay an annual lump-sum fare for a to-and-fro journey to and from home.
- The OSH Code does not carry forward the 1979 Act’s statutory displacement allowance or photo-passbook requirement.
What is the Inter-State Migrant Workmen Act, 1979?
The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 was an Indian labour law that protected workers recruited in one state for employment in another state.
- Recruitment: Regulated contractors recruiting workers from one state for employment in another.
- Wages: Ensured migrant workers received wages comparable to workers in similar roles.
- Displacement allowance: Provided compensation when workers were recruited for employment in another state.
- Journey allowance: Required contractors to cover travel to and from the workplace.
- Working conditions: Covered accommodation, medical facilities, wages, and other basic conditions.
- Contractor responsibility: Placed compliance obligations on contractors and establishments employing migrant workers.
Current position: The 1979 Act has been subsumed into the Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code) as part of India’s labour-code framework.
Is the Inter-State Migrant Workmen Act, 1979 Still in Force?
No. The OSH Code, 2020 repealed the Inter-State Migrant Workmen Act, 1979 along with 12 other central labour laws, with effect from 21 November 2025. Actions taken under the repealed law, including rules, remain valid where they do not conflict with the Code. The OSH (Central) Rules, 2026, notified on 8 May 2026, supersede 15 sets of central rules, including the ISMW Central Rules, 1980.
Key Provisions of the Inter-State Migrant Workmen Act, 1979
The repeal and savings provisions of the OSH Code preserve past actions, rights, obligations, liabilities and proceedings under the 1979 Act. They do so only to the extent the Code provides and where these are consistent with it. For that limited purpose, these were the Act’s main obligations.
Registration and Licensing
- Registration: The principal employer had to register the establishment before employing migrant workmen.
- Recruitment license: The contractor needed a license from the home State to recruit workers.
- Employment license: The contractor needed a second license from the State where the work took place.
- Appeals: An aggrieved party could appeal a registration or licensing order within 30 days.
Contractor Duties
- Particulars: The contractor sent worker details to authorities in both States within 15 days.
- Pass book: Each worker received a photo pass book in Hindi, English, and their own language.
- Cessation return: The contractor filed a return confirming payment of wages, dues, and return fare.
Wages, Allowances and Facilities
- Equal terms: Wages, holidays and hours matched those of other workmen doing similar work.
- Displacement allowance: Workers received 50% of monthly wages or ₹75, whichever was higher.
- Journey allowance: Workers received at least the fare for both journeys, with wages for travel days.
- Facilities: Contractors provided housing, free medical care and protective clothing.
- Principal employer liability: The principal employer paid unpaid dues and recovered them from the contractor.
Penalties
Obstructing an Inspector was punishable by imprisonment for up to 2 years, a fine of up to ₹2,000, or both. Breach of employment provisions or license conditions was punishable by imprisonment for up to 1 year, a fine of up to ₹1,000, or both. A continuing breach attracted an additional ₹100 fine per day.
What Changed under the OSH Code, 2020?
The Code brings migrant worker protection into a single framework for safety, health, and working conditions.
A Wider Definition of Inter-State Migrant Worker
An inter-State migrant worker is now a person employed in an establishment who meets one of two conditions. The employer recruited the person directly, or through a contractor, in another State. Alternatively, the person came on their own and found work in the destination State. The worker must also draw wages up to ₹18,000 a month, or a higher notified amount.
A Higher 10-Worker Threshold
The migrant worker provisions apply to establishments with 10 or more inter-State migrant workers on any day of the preceding 12 months. The earlier threshold was five.
Duties of the Employer and the Contractor
- Working conditions: You must ensure suitable working and living conditions tailored to workers employed outside their home State.
- Accident reporting: You should report a fatal accident or serious injury to both States and the next of kin.
- Equal benefits: You must extend all benefits available to other workers, including ESI, EPF and medical check-ups.
- Journey fare: You must pay each eligible worker an annual lump-sum fare for the to-and-fro journey to their native place.
Portal, Portability and Helpline
Governments must keep a database of inter-State migrant workers on a centralized web portal. The e-Shram portal is the national database of unorganized workers, including migrant workers.
Workers may self-register using a self-declaration and Aadhaar. Governments must frame schemes for ration portability, such as One Nation One Ration Card, and for portability of welfare fund benefits for workers covered by the Building and Other Construction Workers Act. Separately, the Code extinguishes any debt a worker owes the contractor or employer upon the end of employment.
1979 Act vs OSH Code: Side-by-Side Comparison
Here is a table comparing the Inter-State Migrant Workmen Act, 1979, with the OSH Code, 2020.
| Aspect | 1979 Act | OSH Code, 2020 |
|---|---|---|
| Legal status | The Act is repealed. | The OSH Code was brought into force on 21 November 2025. |
| Who is covered | Only contractor-recruited workmen are covered. | Direct, contractor, and self-migrated workers are covered. |
| Wage limit | Supervisors earning over ₹500 a month are excluded. | Workers earning up to ₹18,000 a month are covered. |
| Threshold | Five or more migrant workmen trigger coverage. | Ten or more migrant workers trigger coverage. |
| Travel support | Contractors must pay outward and return fares. | Employers must pay an annual lump-sum round-trip journey allowance. |
| Displacement allowance | Workers get 50% of monthly wages or ₹75. | The Code has no such allowance. |
| Worker records | Contractors issue a photo passbook. | Workers can self-register on a government portal. |
| Welfare portability | The Act offers no portability. | Ration and construction cess benefits are portable. |
What do the OSH (Central) Rules, 2026 Require?
The Central Rules apply where the Central Government is the appropriate government. State rules govern all other establishments.
- Eligibility: A worker who has completed at least 180 days of service in the preceding 12 months is entitled to the journey allowance.
- Class of travel: The journey allowance must cover at least Second Class (Sleeper) train fare or equivalent bus/transport fare.
- Frequency: The allowance is payable once in 12 months.
- Change of employer: The current employer must pay the allowance upon receiving a worker certification confirming non-payment by the previous employer.
- Statutory Reporting: The employer must electronically file migrant worker statistics on the designated portal.
- Helpline: The Central Rules provide for a toll-free helpline through the Director General, Labour Welfare.
Compliance Checklist for Principal Employers and Contractors
Here is an 8-point statutory compliance checklist for establishments that employ inter-State migrant workers.
- Headcount check: Count inter-State migrant workers on each day of the preceding 12 months to identify applicability.
- Wage threshold review: Identify all migrant workers drawing monthly wages up to ₹18,000 to ensure proper coverage under the Code.
- Registration: Register the establishment and submit migrant worker details on the Shram Suvidha Portal (if under Central jurisdiction) or the respective State Labour Department portal (if under State jurisdiction).
- Contractor license: Confirm that contractors with 50 or more workers hold a valid license.
- Welfare benefits: Provide ESIC, EPFO, and mandatory annual health check-ups on par with those of regular employees.
- Journey allowance: Track 180-day eligibility and pay the fare once in 12 months.
- Accident reporting: Immediately report fatal accidents or serious injuries to the competent authorities in both the origin and host States, as well as the worker’s next of kin.
- Portal filing: Submit migrant worker statistics on the designated portal.
Conclusion
The Inter-State Migrant Workmen Act, 1979, treated migrant labour primarily as the contractor’s responsibility. The OSH Code places more of that responsibility on the employer, and portals such as e-Shram are designed to make each worker’s record portable across States.
As more States notify employers of their rules, employers with sites in several States will need multi-location payroll management that complies with each State’s requirements. A clear count of your migrant workers is the right place to start.
Frequently Asked Questions
Is a Separate ISMW License Still Required under the OSH Code?
No. The OSH Code does not have a separate license for inter-State migrant workers. Contractors engaging 50 or more contract workers need a contract labour license, and the application must include details of any inter-State migrant workers engaged.
Is Displacement Allowance Still Payable after the Repeal?
The OSH Code does not provide a displacement allowance. You need to pay it only if an existing agreement or settlement with your workers provides for it.
Do Registrations and Licenses Issued under the 1979 Act Remain Valid?
They are saved only to the extent the Code’s repeal and savings provisions allow, and only where they are consistent with the Code. Treat them as transitional and confirm with your registering authority whether you need a new registration or a contract labour license.
What is the Penalty for Not Complying with the Migrant Worker Provisions of the OSH Code?
A breach generally attracts the Code’s general penalty, which is a fine of ₹2 lakh to ₹3 lakh. A continuing breach can add up to ₹2,000 for each day. First-time offenses punishable only with a fine may be compounded.
Are Workers Who Migrate within the Same State Covered?
No. Both the 1979 Act and the migrant worker provisions of the OSH Code cover only workers who move from one State to another. A worker who migrates within the same State remains covered by the Code’s general provisions, provided the establishment falls under the Code.
How do the Other Labour Codes Protect Migrant Workers?
The Code on Wages, 2019 gives every worker a right to minimum wages and timely payment. Under the Code on Social Security, 2020, migrants can register on the e-Shram portal with Aadhaar. ESIC coverage is mandatory for establishments with more than 10 employees, and EPF applies to establishments with 20 or more employees.
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