Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act

This study material provides a comprehensive overview of the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 (hereinafter referred to as the “Act”). It is designed for students, legal professionals, or anyone seeking an in-depth understanding of the legislation aimed at protecting inter-state migrant workers in India. The material is structured with headings, subheadings, explanations, and key provisions for easy reference and study. It includes the historical context, objectives, applicability, detailed provisions, and enforcement mechanisms. At the end of the preliminary section, I have listed the key definitions exactly as mentioned in Section 2 of the Act.

The Act was enacted to address the exploitation faced by migrant workers who move across state borders for employment, often through contractors. It seeks to regulate their recruitment, employment conditions, and welfare, ensuring they receive fair wages, safe working environments, and necessary allowances. While the Act has been influential, it was largely subsumed into the Occupational Safety, Health and Working Conditions Code, 2020, but for study purposes, we focus on the original 1979 Act.

Introduction and Historical Context

The Act was passed by the Indian Parliament on June 11, 1979, and came into effect on October 2, 1980. It was introduced in response to widespread reports of exploitation of migrant laborers, particularly those recruited from one state to work in another, often in industries like construction, mining, and manufacturing. These workers faced issues such as non-payment of wages, poor living conditions, lack of medical facilities, and absence of legal protections.

The preamble of the Act states its purpose: “An Act to regulate the employment of inter-State migrant workmen and to provide for their conditions of service and for matters connected therewith.” It draws from constitutional principles under Articles 14 (equality), 19 (freedom of movement), and 21 (right to life and dignity) of the Indian Constitution, aiming to prevent bonded labor-like situations and ensure parity with local workers.

Key features include mandatory registration of establishments, licensing of contractors, provision of passbooks to workers, and mechanisms for grievance redressal. The Act applies across India and is administered by both Central and State Governments, depending on the nature of the establishment.

Objectives

The primary objectives of the Act are:

• To regulate the recruitment and employment of inter-state migrant workmen to prevent exploitation by contractors and principal employers.
• To ensure fair wages, safe working conditions, and welfare facilities such as accommodation, medical aid, and protective clothing.
• To provide special allowances like displacement and journey allowances to compensate for the hardships of migration.
• To enforce accountability through registration, licensing, inspections, and penalties for violations.
• To integrate migrant workers’ rights with existing labor laws, such as the Minimum Wages Act, 1948, and the Payment of Wages Act, 1936.
• To facilitate resolution of industrial disputes involving migrant workers, even after they return to their home states.

By achieving these, the Act aims to promote social justice and protect vulnerable workers from interstate migration-related vulnerabilities.

Applicability

The Act applies to:

• Every establishment that employs or has employed five or more inter-state migrant workmen on any day in the preceding 12 months.
• Every contractor who recruits or employs five or more inter-state migrant workmen on any day in the preceding 12 months.

It does not apply to establishments with fewer than five such workers or to intra-state migration. The “appropriate Government” (Central or State) oversees implementation based on the type of establishment (e.g., Central for railways, mines; State for others).

Exemptions can be granted by the appropriate Government in special cases under Section 31, such as for public interest or temporary projects.

Key Definitions as Mentioned in the Act (Section 2)

Section 2 provides the foundational definitions for interpreting the Act. Below are the key definitions extracted verbatim from the Act:

(a) “appropriate Government” means,—
(i) in relation to—
(1) any establishment pertaining to any industry carried on by or under the authority of the Central Government or pertaining to any such controlled industry as may be specified in this behalf by the Central Government; or
(2) any establishment of any railway, Cantonment Board, major port, mine or oil-field; or
(3) any establishment of a banking or insurance company, the Central Government;
(ii) in relation to any other establishment, the Government of the State in which that other establishment is situated;

(b) “contractor”, in relation to an establishment, means a person who undertakes (whether as an independent contractor, agent, employee or otherwise) to produce a given result for the establishment, other than mere supply of goods or articles of manufacture to such establishment, by the employment of workmen or to supply workmen to the establishment, and includes a sub-contractor, Khatadar, Sardar, agent or any other person, by whatever name called, who recruits or employs workmen;

(c) “controlled industry” means any industry the control of which by the Union has been declared by any Central Act to be expedient in the public interest;

(d) “establishment” means—
(i) any office or department of the Government or a local authority; or
(ii) any place where any industry, trade, business, manufacture or occupation is carried on;

(e) “inter-State migrant workman” means 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 in relation to such establishment;

(f) “prescribed” means prescribed by rules made under this Act;

(g) “principal employer” means,—
(i) in relation to any office or department of the Government or a local authority, the head of that office, department or authority or such other officer as the Government or the local authority, as the case may be, may specify in this behalf;
(ii) in relation to a factory, the owner or occupier of the factory and where a person has been named as the manager of the factory under the Factories Act, 1948 (63 of 1948), the person so named;
(iii) in relation to a mine, the owner or agent of the mine and where a person has been named as the manager of the mine, the person so named;
(iv) in relation to any other establishment, any person responsible for the supervision and control of the establishment.
Explanation.—For the purposes of sub-clause (iii) of this clause, the expressions “mine”, “owner” and “agent” shall have the meanings respectively assigned to them in clause (j), clause (l) and clause (c) of sub-section (1) of section 2 of the Mines Act,1952 (35 of 1952);

(h) “recruitment” includes entering into any agreement or other arrangement for recruitment and all its grammatical variations and cognate expressions shall be construed accordingly;

(i) “wages” shall have the meaning assigned to it in clause (vi) of section 2 of the Payment of Wages Act, 1936 (4 of 1936);

(j) “workman” means any person employed in or in connection with the work of any establishment to do any skilled, semi-skilled or unskilled, manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be express or implied, but does not include any such person—
(i) who is employed mainly in a managerial or administration capacity; or
(ii) who, being employed in a supervisory capacity, draws wages exceeding five hundred rupees per mensem, or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature.

These definitions are crucial for understanding the scope and application of the Act. For instance, the definition of “inter-State migrant workman” emphasizes recruitment through contractors across states, excluding voluntary migration without such involvement.

Main Provisions of the Act

The Act is organized into seven chapters, each dealing with specific aspects of regulation and protection. Below is a detailed breakdown.

Chapter I: Preliminary (Sections 1-2)

This chapter covers the short title, extent (whole of India), commencement, and definitions. It sets the foundation by clarifying that the Act applies from the date five or more migrant workers are employed.

Chapter II: Registration of Establishments Employing Inter-State Migrant Workmen (Sections 3-6)

• Appointment of Registering Officers (Section 3): The appropriate Government appoints officers to handle registrations and defines their jurisdictions.
• Registration Process (Section 4): Principal employers must apply for registration in the prescribed form, paying fees. The registering officer must decide within one month; if not, the establishment is deemed registered upon a written request.
• Revocation (Section 5): Registration can be revoked for misrepresentation, suppression of facts, or if the establishment becomes inoperative, after giving an opportunity to be heard and with government approval.
• Prohibition (Section 6): No employment of migrant workers without registration. Pending applications are protected.

This chapter ensures that only registered establishments can hire migrant workers, promoting transparency.

Chapter III: Licensing of Contractors (Sections 7-11)

• Appointment of Licensing Officers (Section 7): Similar to registering officers, with defined limits.
• Licensing Requirement (Section 8): Contractors need a license to recruit or employ migrant workers. Licenses specify conditions like wage rates, hours, and amenities, and may require security deposits.
• Grant and Renewal (Section 9): Applications must include details of the establishment and workers. Officers can investigate and grant/renew licenses for up to 12 months.
• Revocation/Suspension (Section 10): For violations or misrepresentation, after hearing the contractor.
• Appeals (Section 11): Against registration/licensing orders, to an appellate officer within 30 days (extendable).

Licensing prevents unlicensed middlemen from exploiting workers.

Chapter IV: Duties and Obligations of Contractors (Section 12)

Contractors must:

• Notify authorities in both the origin and destination states within 15 days of recruitment/employment about worker details.
• Issue passbooks to each worker containing employment details, wages, allowances, and photographs (affixed in the presence of an authorized representative).
• Submit returns to authorities upon completion of work, confirming full payments and return journeys.

This ensures documentation and accountability.

Chapter V: Wages, Welfare, and Other Facilities (Sections 13-19)

This is the core welfare chapter.

• Wage Rates and Conditions (Section 13): Migrant workers get the same wages, holidays, and hours as local workers or as prescribed (not less than minimum wages). Wages must be in cash; equal pay for equal work regardless of gender.
• Displacement Allowance (Section 14): One-time payment at recruitment: 50% of monthly wages or ₹75 (whichever higher), non-recoverable.
• Journey Allowance (Section 15): Covers rail/bus fare for outward and return journeys from home to workplace. Wages payable during travel if over 8 hours.
• Other Facilities (Section 16): Includes regular wage payment, suitable accommodation, free medical aid, protective clothing, and reporting accidents/injuries to authorities and kin.
• Payment Responsibility (Section 17): Contractors pay wages in the presence of the principal employer’s representative, who certifies payments.
• Liability of Principal Employer (Section 18): If contractor fails, principal employer pays and recovers from contractor.
• Past Liabilities (Section 19): Any advances/loans by contractor/principal employer are deemed extinguished upon work completion; no recovery allowed.

These provisions address financial and living hardships.

Chapter VI: Inspecting Staff (Section 20)

• The appropriate Government appoints inspectors with powers to enter premises, examine records/workers, seize documents, and require information.
• Inspectors ensure compliance with wages, facilities, and registrations.
• Inter-state coordination allows inspectors from one state to act in another with concurrence.

This enables enforcement through on-ground checks.

Chapter VII: Miscellaneous (Sections 21-36)

• Deemed Employment (Section 21): Migrant workers are considered employed from recruitment date for laws like Workmen’s Compensation Act, 1923.
• Industrial Disputes (Section 22): Disputes can be raised in either state; proceedings transferable if worker returns home.
• Records and Notices (Section 23): Maintain registers of workers, wages, etc.; display notices on work hours and abstracts of the Act.
• Offences and Penalties (Sections 24-29):
• Obstruction: Up to 2 years imprisonment and/or ₹2,000 fine.
• Employment without registration/license: Up to 1 year and/or ₹1,000, plus daily fine for continuance.
• Other violations: Up to 2 years and/or ₹2,000.
• Company offences: Directors/managers liable unless proven innocent.
• Cognizance: Only on inspector complaint; time-barred after 3-6 months.
• Overriding Effect (Section 30): Act prevails over inconsistent laws/agreements, but favorable terms retained.
• Exemptions and Protections (Sections 31-32): Government exemptions; no suits against good-faith actions.
• Directions and Rules (Sections 33-35): Central Government directions; rule-making powers for forms, fees, etc.
• Repeals (Section 36): Repeals conflicting state laws like Orissa Dadan Labour Act, 1975.

Enforcement and Challenges

Enforcement relies on inspectors, but challenges include under-reporting, weak implementation in remote areas, and overlaps with other laws. Courts have interpreted the Act broadly to protect workers (e.g., Bandhua Mukti Morcha v. Union of India, 1984). Penalties deter violations, but awareness programs are needed.

Conclusion

The Act represents a landmark in labor protection, balancing employer needs with worker rights. For deeper study, refer to rules framed under Section 35 (e.g., Central Rules, 1980) and case laws. This material can be used for exams, essays, or practical application in labor compliance.