Compliance

Inter-state migrant workers under the OSH Code

At ten migrant workers Part II applies: fare home yearly after 180 days, accident reports to both States, full parity. Who counts, and what a site owes.

Railway station platforms seen from a footbridge, corrugated roofs and a waiting train under a blue sky, passengers small in the distance.

An inter-state migrant worker under the Occupational Safety, Health and Working Conditions Code 2020 is anyone recruited in one State for work in another, or who came on their own, earning up to ₹18,000 a month. Once an establishment has ten of them on any day in a year, Part II applies: the same benefits as every other worker, accident reports to both States, and a lump-sum fare home once a year after 180 days' service. For a Chennai plant with a crew from Bihar, Odisha or Jharkhand, that is most of the contract workforce.

Who counts, and from what headcount

Section 2(zf) defines the worker by two routes and one ceiling. The first route is recruitment "directly by the employer or indirectly through contractor in one State for employment in such establishment situated in another State". The second, new in the Code, is the worker who "has come on his own from one State and obtained employment in an establishment of another State", including one who later changed establishments within the destination State. Both are subject to a wage ceiling of ₹18,000 a month, or a higher figure the Central Government notifies. The 1979 Act covered only the first route; a worker who arrived at the gate without a contractor was invisible to it.

Section 59 applies Part II to "every establishment in which ten or more inter-State migrant workers are employed or were employed on any day of the preceding twelve months". The count is by establishment, not by contractor, so a plant with three contractors supplying four migrant workers each is at twelve and inside Part II even though no contractor is. It is a look-back, so the peak day in the previous year governs the current one. The old Act's threshold was five, and it applied to the contractor as well as the establishment [VERIFY: Inter-State Migrant Workmen (RE&CS) Act 1979, s.1(4), from general knowledge of the repealed statute].

Inter-State Migrant Workmen Act 1979OSH Code 2020, Part II
Who is coveredOnly workers recruited through a contractorRecruited through a contractor or directly, or who came on their own (s.2(zf))
Wage ceilingNone₹18,000 a month, or as notified (s.2(zf))
ThresholdFive or more, establishment or contractor [VERIFY]Ten or more in the establishment on any day of the preceding twelve months (s.59)
Separate licence and registrationContractor licence and establishment registration specific to migrant workers [VERIFY]None specific to migrant workers; the single registration under s.3 and, at 50 contract labour, the contractor licence under s.47
Displacement allowance50% of monthly wages on recruitment [VERIFY: s.14 figure]Not carried into the Code
Journey allowanceFare both ways, paid by the contractor [VERIFY: s.15]Lump-sum fare to and fro once a year after 180 days, paid by the employer (s.61; Central r.102)
Past debtsNo equivalentDebts owed to the contractor or principal employer are extinguished when the employment ends (s.65)

The duties, and who carries each

Section 60 puts three duties on "every contractor or the employer" of an establishment employing inter-state migrant workers, jointly worded so that neither can point at the other. The first is "suitable conditions of work" that take account of the worker being away from their own State. The second is to report a fatal accident or serious bodily injury "to the specified authorities of both the States and also the next of kin of the worker", which is one report more than the site files for a local worker. The third is to extend every benefit available to a worker of that establishment, naming ESI and EPF specifically, and the free annual health examination that section 6(1)(c) requires for the classes of worker the rules prescribe.

Section 61 puts the journey allowance on the employer alone: "a lump sum amount of fare for to and fro journey to his native place from the place of his employment", once a year, on terms the appropriate government prescribes. Where the worker is contract labour the contractor is the employer for this purpose, and the cost should be visible in the contract rate rather than discovered at month seven [VERIFY: that "employer" in s.61 reaches the contractor for contract labour, by reference to the s.2(v) definition of employer]. The Ministry's FAQ on the Code (January 2026) is blunt on the parity point: "The Code does not distinguish regular and contract workers or ISMW" (Q10).

DutySourceWhoWhen
Suitable conditions of work for a worker away from homes.60(i)Contractor or employerThroughout
Report a death or serious injury to the authorities of both States and to next of kins.60(ii)Contractor or employerOn the event, alongside the s.10 accident notice
ESI, EPF and every other benefit available to the establishment's workers; free annual health examinations.60(iii), s.6(1)(c)Contractor or employerFrom day one; examination annually
Lump-sum fare home and back, once in twelve monthss.61; Central r.102; TN draft r.59EmployerAfter 180 days' service in the preceding twelve months
Statistics on the designated portalCentral r.13EmployerAs the Central Government orders
Count of migrant workers in the registration particularsCentral Rules Form IEmployerAt registration and on amendment

The journey allowance, worked through

Rule 102 of the OSH (Central) Rules 2026 fills in section 61 for central-sphere establishments, and the Tamil Nadu draft rule 59 follows it with one addition. The allowance is a lump sum for the fare "by train not less than II Class sleeper or by bus or any other mode of passenger transport" from the place of employment to the place of residence in the home State and back. It is earned by 180 days of work at the establishment in the preceding twelve months, and it is paid once in twelve months. The Tamil Nadu draft adds ₹100 per family member per day of travel for food, where the family lives with the worker at the place of work [VERIFY: whether the Tamil Nadu rules have been finalised and the figure retained].

Rule 102(2) deals with the case that actually happens: the worker changes employer mid-year. If the worker has not taken the allowance from the previous employer and gives a certificate to that effect, the current employer pays it once the worker has completed 180 days across both employers in the preceding twelve months. A contractor taking over a crew from another contractor inherits part of a 180-day clock, and the handover file should say how much. On the numbers, a crew of 40 migrant workers on a Chennai site, each entitled once a year to a sleeper fare home and back, is a predictable annual line; the sleeper fare is a published tariff and the site can price it, which is more than could be said of the old displacement allowance.

  • Identify at onboarding. Home State, home station, monthly wage against the ₹18,000 ceiling, and whether the worker came through the contractor or on their own. Four fields on the joining form settle Part II status for the year.
  • Run the 180-day clock per worker. Days worked at this establishment in the trailing twelve months, carried across a change of contractor with the r.102(2) certificate. The allowance falls due on day 180, not on the anniversary.
  • Next of kin, with a phone number in the home State. Section 60(ii) requires the report to reach them; a joining form with a blank next-of-kin line is a report that cannot be made.
  • Two accident reports, not one. The s.10 notice to the local authorities, which the Central Rules (r.7) require forthwith for a death, in Form XI, to the Inspector-cum-Facilitator, the District Magistrate, the police and the family, and within twelve hours after a 48-hour absence for an injury; and the s.60(ii) report to the home State's specified authority, which r.7 does not name [VERIFY: which home-State authority is specified, and by which instrument].
  • No recovery of advances after exit. Section 65 extinguishes any debt a migrant worker owes the contractor or principal employer when the employment ends. A contractor who lends against wages and expects to recover from a final settlement has no claim once the worker leaves.

What the site does with a mixed crew

Treat Part II as a tag on the worker record, not a separate compliance stream. Everything it asks for is already in the establishment's registration (the Central Rules' Form I asks for the total number of inter-state migrant workers employed), in the contractor's register under section 33, and in the joining file. The site's exposure is the section 60 wording: "every contractor or the employer", which means a contractor's failure to pay a journey allowance, or to report a death to the home State, is one the principal employer is also named for. The contract with the contractor should carry the allowance as a priced line, the 180-day tracker as a monthly deliverable, and the next-of-kin field as a condition of deployment.

The public-distribution portability in section 62 and the toll-free helpline in section 63 are the appropriate government's to build, not the site's; the Ministry's FAQ points to the helpline as the route for a migrant worker in difficulty (Q8), and the Central Rules assign it to the Director General, Labour Welfare (r.103). Whether a particular arrangement, such as a worker whose wage crosses ₹18,000 mid-year or a crew that came on its own and later moved between two Chennai plants, falls inside or outside Part II is a question of fact on the definition, and one for the site's own counsel.

Sources

Frequently asked questions

Is a worker who came to Chennai on their own an inter-state migrant worker?

Yes, if they came from another State, obtained employment here under an agreement or other arrangement, and draw up to ₹18,000 a month. Section 2(zf) of the OSH Code covers both the worker recruited in another State through a contractor or directly and the worker who arrived on their own, including one who later moved between establishments in Tamil Nadu. The 1979 Act covered only the contractor route.

When does a migrant worker become entitled to the journey allowance?

After 180 days of work at the establishment in the preceding twelve months, once in every twelve months, under rule 102 of the Central Rules and draft rule 59 of the Tamil Nadu rules. The allowance is a lump sum for the fare both ways by train, not less than second-class sleeper, or by bus. Days with a previous employer count if the worker certifies the allowance was not taken there.

Who pays the journey allowance for a contract worker?

Section 61 places it on the employer, and for contract labour that is the contractor, which is why it should be a priced line in the contract rather than a surprise. Section 60, by contrast, names "every contractor or the employer" for conditions of work, accident reporting and benefits, so the principal employer is exposed on those three whatever the contract says.

Can a contractor recover an advance from a migrant worker's final settlement?

Not after the employment ends. Section 65 of the OSH Code bars any suit or proceeding to recover a debt owed by an inter-state migrant worker to the contractor or principal employer once the period of employment is complete, and deems the debt extinguished. An advance is recoverable, if at all, only while the worker is still employed and only within the deduction rules of the Code on Wages.