Inter-State Migrant Workers Under India’s OSH Code, 2020: Rights, Journey Allowance and Employer Compliance

Introduction

India’s Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code) introduces a consolidated framework for regulating workplace safety, health and working conditions, including specific protections for inter-State migrant workers. With the Code coming into force on 21 November 2025 and the Occupational Safety, Health and Working Conditions (Central) Rules, 2026 being notified on 8 May 2026, employers and contractors must reassess how they identify, document and provide benefits to migrant workers.¹

One of the most significant changes is the recognition of workers who migrate independently to another State and subsequently secure employment, rather than limiting protection to workers recruited through contractors. The framework also provides for an annual journey allowance, electronic reporting of migrant-worker statistics and access to specified welfare benefits. For employers operating across States, these provisions make accurate worker classification, payroll records and contractor oversight important elements of labour-law compliance.

1. Who qualifies as an inter-State migrant worker under the OSH Code?

Section 2(zf) of the OSH Code defines an inter-State migrant worker as a person employed in an establishment who meets the statutory conditions concerning inter-State movement for employment. The definition covers a person who:

• Has been recruited directly by an employer or indirectly through a contractor in one State for employment in an establishment situated in another State; or
• Has migrated independently from one State and obtained employment in an establishment in another State, or subsequently changed establishments within the destination State, subject to the statutory conditions.

The definition also includes a monthly wage ceiling of ₹18,000, or such other amount as may be notified by the Central Government. Accordingly, not every person working outside their home State will automatically qualify as an inter-State migrant worker under this definition. Employers should assess the statutory criteria, including the nature of the migration, employment arrangement and applicable wage ceiling, rather than relying on the worker’s place of origin alone.

The inclusion of independently migrating workers is a significant development. A worker may move to another State in search of employment without being recruited through a contractor. Recognising this category broadens the framework’s reach and reflects the practical circumstances in which inter-State migration occurs.

When do the specific migrant-worker provisions apply?

Section 59 provides that Part II of Chapter XI applies to an establishment in which ten or more inter-State migrant workers are employed, or were employed on any day during the preceding twelve months. This is a specific threshold for the migrant-worker provisions; it should not be confused with the registration requirements applicable to establishments under Section 3 or the separate thresholds governing contract labour.

Employers should therefore maintain reliable records of the number of qualifying migrant workers engaged during the relevant period. This is particularly important for businesses operating through multiple contractors or across several locations.

2. Registration, electronic records and migrant-worker reporting

The OSH Code establishes a consolidated registration framework for establishments covered by the legislation. Under Section 3, employers must register establishments in accordance with the applicable requirements. The Occupational Safety, Health and Working Conditions (Central) Rules, 2026 prescribe the registration process for establishments within the Central sphere, including electronic applications through the Shram Suvidha Portal or another designated portal.

Registration should not be treated as a substitute for maintaining worker-level records. Rule 13 of the Central Rules requires employers to furnish detailed statistics concerning inter-State migrant workers and their occupational safety and health electronically through the portal designated by the Central Government.

Section 21 also provides for the maintenance of records of inter-State migrant workers by the appropriate governments, with provision for worker self-registration through the prescribed system. This is relevant because the identification and documentation of migrant workers should not depend entirely on whether an employer or contractor initiates the process.

For compliance purposes, employers should maintain accurate and reconcilable records, as applicable, covering:

• The worker’s home State and place of employment;
• Recruitment arrangements and the identity of the contractor or subcontractor, where relevant;
• Wage details and employment dates;
• Applicable social-security identifiers and benefit records; and
• Journey-allowance eligibility, calculation and payment records.

The information maintained should be limited to what is necessary for lawful compliance and handled in accordance with applicable data-protection and information-security requirements. Employers should also establish internal procedures to keep records current when workers change roles, contractors or establishments.

3. Annual journey allowance: Eligibility and payment

Section 61 of the OSH Code provides that an inter-State migrant worker employed in an establishment is entitled to a lump-sum amount towards the fare for a return journey between the place of employment and the worker’s native place during the year. The applicable government’s rules determine the minimum service requirement, periodicity, class of travel and other relevant conditions.

For establishments governed by the Central Rules, Rule 102 of the Occupational Safety, Health and Working Conditions (Central) Rules, 2026 sets out the payment requirements. Under this rule:

• Minimum service: The worker must have completed at least 180 days of work in the concerned establishment or establishments during the preceding twelve months.
• Frequency: The journey allowance is payable once in twelve months.
• Journey covered: The allowance must cover the to-and-fro journey between the place of employment and the worker’s place of residence in the home State.
• Travel basis: The amount is linked to the fare for travel by train at not less than second-class sleeper, by bus or by another mode of passenger transport.
• Change of employer: Where a worker changes employers during the relevant period and has not received the allowance from the previous employer, the current employer must pay it if the worker satisfies the 180-day requirement, including the qualifying period spent with the previous employer, supported by the worker’s certificate as contemplated by Rule 102.

Employers should build this entitlement into their payroll and HR processes. Records should identify workers approaching the 180-day threshold, establish whether an allowance has already been paid, and document the basis and date of payment. Where workers move between contractors or establishments, the process should also allow the relevant service period and payment history to be verified.

Journey allowance is distinct from displacement allowance

The earlier Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 provided for a separate displacement allowance, in addition to journey-related payments. The OSH Code’s Section 61 instead expressly addresses an annual return-journey allowance and does not reproduce the former Act’s separate 50% monthly-wage displacement allowance in the same form.

Employers should therefore distinguish the current statutory journey-allowance obligation from liabilities that may have accrued under the earlier legislation or arise under another applicable law, contract, settlement or arrangement. The repeal-and-savings provisions must also be considered when assessing historical liabilities. A blanket assumption that the former displacement allowance continues as a new, automatic entitlement under the OSH Code would be inaccurate.

4. Employer and contractor responsibilities

The OSH Code does not treat the welfare and safety of inter-State migrant workers as a matter that can be addressed solely through recruitment documentation. Section 60 places obligations on contractors and employers of establishments engaging such workers, including ensuring suitable working conditions in light of the worker’s employment in a State different from their own. It also addresses reporting in cases of fatal accidents or serious bodily injury and the extension of applicable benefits and medical-check-up facilities.

These duties should be read alongside the Code’s wider requirements concerning health, safety, welfare and contract labour. The precise obligations applicable to an establishment depend on the relevant statutory provisions, the nature of the work and the rules made by the appropriate government.

For principal employers engaging workers through contractors, outsourcing does not eliminate the need for oversight. Contract labour provisions separately address matters such as licensing, welfare facilities and wage-payment responsibilities. The applicable thresholds and allocation of duties must be assessed under the Code rather than assumed to be identical to those under the repealed legislation.

A practical compliance framework should include:

1. Worker classification: Verify which workers meet the statutory definition of inter-State migrant worker and monitor the applicable wage ceiling.
2. Contractor due diligence: Check the contractor’s registration or licence, where required, and maintain accurate details of the workers deployed.
3. Payroll and attendance reconciliation: Compare attendance, wage payments and employment records with the information supplied by contractors.
4. Journey-allowance tracking: Monitor the 180-day service requirement, check whether the allowance has already been paid and retain supporting records.
5. Health, safety and welfare: Confirm that applicable workplace protections, facilities and benefits are provided and that serious incidents are reported in accordance with the law.
6. Contractual controls: Include clear obligations concerning records, statutory benefits, reporting, audits and responsibility for non-compliance in contractor agreements, while recognising that contractual allocation does not displace statutory duties.

Construction and infrastructure businesses, manufacturing establishments, logistics operators and other employers relying on contract labour may face particular administrative challenges because workers can be engaged through multiple contractors or move between projects. A documented system for monitoring worker deployment and compliance can help identify gaps before they develop into disputes or enforcement issues.

5. Central and State rules: Why the appropriate government matters

Although the OSH Code provides a common statutory framework, the appropriate government for a particular establishment determines which rules and administrative requirements apply. The Central Rules notified on 8 May 2026 govern establishments falling within the Central sphere. Establishments governed by State Governments must also examine the applicable State rules, notifications, forms and administrative arrangements.

This distinction matters for employers operating in more than one State. They should not assume that the Central Rules automatically prescribe every operational requirement for every establishment across India. The applicable framework may differ depending on the establishment’s classification and the appropriate government’s jurisdiction.

A multi-State employer should maintain a compliance matrix identifying the relevant authority, registration and reporting requirements, applicable rules, worker thresholds and responsible internal teams for each establishment. The matrix should be reviewed whenever the workforce, nature of operations or applicable rules change.

6. Key compliance priorities for employers

The OSH Code’s provisions on inter-State migrant workers require employers to connect workforce records with actual compliance practices. A registration certificate or a contract with a labour supplier, by itself, does not establish that each applicable obligation has been fulfilled.

Employers should prioritise the following actions:

• Review the workforce to identify inter-State migrant workers within the statutory definition.
• Check whether the ten-worker threshold under Section 59 has been met during the relevant twelve-month period.
• Confirm that establishment registration and contractor licensing requirements are satisfied wherever applicable.
• Establish an electronic recordkeeping and reporting process consistent with Rule 13 and other applicable requirements.
• Track journey-allowance eligibility and payments in accordance with Section 61 and Rule 102, where the Central Rules apply.
• Verify compliance with applicable safety, welfare, benefit and incident-reporting obligations.
• Review contractor agreements and audit procedures without treating contractual indemnities as a substitute for statutory compliance.
• Identify the appropriate government and confirm the rules and notifications applicable to each establishment.

These steps should be adapted to the employer’s sector, workforce structure and jurisdiction. Where State rules or notifications prescribe additional operational requirements, the compliance process should reflect those requirements rather than rely solely on the Central Rules.

Conclusion

The OSH Code, 2020 expands the statutory recognition of inter-State migrant workers by including qualifying workers who migrate independently for employment. It also establishes a framework for worker records, electronic reporting, applicable workplace protections and an annual journey allowance.

For employers and contractors, the central compliance challenge is to translate these requirements into reliable systems for worker identification, payroll, recordkeeping, safety and contractor oversight. Organisations operating across States should pay particular attention to the distinction between the Code’s common statutory provisions and the rules applicable to establishments under the Central or State sphere. A structured, regularly reviewed compliance process can help employers meet their obligations while ensuring that migrant workers receive the protections available to them under the applicable law.

1. Ministry of Law and Justice, Government of India. (2020). The Occupational Safety, Health and Working Conditions Code, 2020 (Act No. 37 of 2020). India Code. https://www.indiacode.nic.in/indiacode/bitstream/123456789/22041/1/a2020-37.pdf   ↩︎

Last Updated on 23 October, 2026