Labour Codes: #25 Inter-State Migrant Workers and Employer’s Obligations (Under the OSHWC Code, 2020 and Code on Social Security, 2020)

The Occupational Safety, Health and Working Conditions Code, 2020 (OSHWC Code) and the Code on Social Security, 2020 (CSS) have subsumed the earlier Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 (ISMA). These new labour codes aim to provide better working conditions, social protection, and mobility benefits to migrant workers while simplifying employer compliance through digital processes and uniform regulation. However, the code is yet to be notified.

A. Applicability and Definitions

Applicability:

1. The provisions relating to inter-state migrant workers apply to establishments employing ten (10) or more inter-state migrant workers [earlier five (5) under ISMA].

2. Covers contractors and principal employers engaging such workers across state boundaries.

Inter-State Migrant Worker:

1. Any person who moves from one state to another for employment, either through a contractor or on their own, and draws wages up to Rupees Eighteen Thousand (Rs. 18,000) per month.

2. The new definition includes self-motivated migrant workers, thereby widening the scope beyond contract-based migration.

B. Registration and Identification

1. Mandatory Registration:

a. Every inter-state migrant worker is required to register on the Shram Suvidha or Aadhaar-linked digital portal maintained by the Central Government.

b. Workers may self-register using Aadhaar and mobile verification.

2. Employer’s Responsibility:

a. Employers and contractors must ensure that all inter-state migrant workers are registered and provided with appointment letters specifying wages, nature of work, and duration.

b. They must maintain digital records of migrant workers and update changes periodically.

3. Challenges and Considerations:

a. While registration promotes accountability, limited access to smartphones or Aadhaar among migrant populations may hinder coverage unless addressed by the authorities through facilitation centres or offline enrolment support.

C. Rights and Welfare Provisions for Migrant Workers

1. Portability of Benefits:

a. Migrant workers are entitled to portability of the Public Distribution System (PDS) under the One Nation, One Ration Card scheme, ensuring access to subsidized food grains in both source and destination states.

2. Social Security and Welfare:

a. The CSS provides for a Social Security Fund to support unorganised, gig, and platform workers, including migrants.

b. Access to healthcare, housing, education, and insurance benefits through existing and new welfare schemes is envisaged.

3. Information and Grievance Redressal:

a. Setting up of toll-free helplines and call centres for migrant workers.

b. Dissemination of information on rights, entitlements, and job opportunities through digital and state-level platforms.

D. Employer’s Key Obligations

1. Safe and Suitable Working Conditions: Provide proper accommodation, medical facilities, protective gear, and safe working environments for all migrant workers.

2. Equal Treatment: Ensure wages, hours of work, and other conditions of service are on par with local workers doing similar work.

3. Journey Allowance: Pay a displacement and journey allowance to workers to cover travel from their home state to the work location and back.

4. Record Maintenance: Maintain registers of migrant workers, including their permanent address, employment details, and payment records, and make them available for inspection.

5. Intimation to Authorities: Notify the appropriate government authorities of recruitment and employment of inter-state migrant workers through prescribed online forms.

E. Institutional Mechanisms

a. Inspector-cum-Facilitator: Empowered to guide, inspect, and ensure compliance with the OSHWC Code provisions.

b. Advisory Boards (National and State): Advise governments on welfare measures and standards for inter-state migrant workers.

c. Centralised Portal: Enables interstate coordination, benefit transfer, and grievance tracking in a single digital ecosystem.

F. Key Differences from Earlier Law (ISMA, 1979)

Aspect	ISMA (1979)	OSHWC & CSS (2020)
Threshold	5 or more migrant workers	10 or more migrant workers
Coverage	Only workers recruited by contractors	Includes self-migrated workers
Registration	Manual and rarely implemented	Digital, Aadhaar-based, self-registration allowed
Social Security	Limited welfare provisions	Dedicated fund and benefit portability introduced
Enforcement	Inspections and licensing	Compliance via inspector-cum-facilitator and digital records

G. Key Impact

a) Expanded Coverage and Digital Transformation: The new provisions expand the definition of inter-state migrant workers to include self-migrating workers, thereby widening the scope beyond contractor-recruited workers. The introduction of Aadhaar-based digital registration enhances traceability and portability of benefits, replacing the manual and rarely implemented registration system under the ISMA.

b) Strengthened Social Security Framework: The integration with national welfare schemes and the establishment of a dedicated Social Security Fund strengthen safety nets for migrant workers. The portability of benefits under the One Nation, One Ration Card scheme ensures that workers can access essential services across states, addressing a critical gap in the earlier framework.

c) Enhanced Accountability and Enforcement: Unlike earlier times, when migrant workers faced limited protection and enforcement mechanisms, the new reform introduces inspector-cum-facilitators and digital record-keeping requirements that enhance accountability. The establishment of grievance redressal mechanisms through toll-free helplines and digital platforms provides workers with better access to remedies.

However, along with these positives, the reform also carries certain drawbacks. The increase in the threshold from five (5) to ten (10) workers may exclude small establishments from the scope of regulation, potentially leaving some migrant workers without statutory protection.