Interstate migrant workers are workers who are recruited by or through a contractor in one state for employment in an establishment in another state, and who are entitled to specific statutory protections including displacement allowance, journey allowance, suitable working conditions, and wages at parity with local workers. Under Indian law, the Interstate Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 currently governs this area, though it is to be replaced by Sections 59-62 of the Occupational Safety, Health and Working Conditions Code, 2020 once the Code is operationalised.
Legal definition
The existing legislation defines the term as follows:
Interstate Migrant Workmen Act, 1979, Section 2(1)(e): "Interstate 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.
The OSH Code, 2020 broadens the definition:
Section 2(zf): "Inter-State migrant worker" means a person who is recruited by an employer or a contractor for working in an establishment situated in one State but the worker belongs to another State.
Key protections (current Act / OSH Code):
| Protection | 1979 Act | OSH Code 2020 |
|---|---|---|
| Displacement allowance | 50% of monthly wages (one-time) | To be prescribed |
| Journey allowance | Railway fare from home state to workplace | Travel expenses both ways |
| Wages | Not less than local minimum wage | At par with local workers |
| Suitable accommodation | Employer must provide | Employer must provide suitable conditions |
| Medical facilities | Free of charge | To be prescribed |
| Registration | With contractor/principal employer | Self-registration through online portal |
| Portability of benefits | Not provided | Aadhaar-based portability — Section 61 |
Important change in OSH Code: The Code shifts from contractor-mediated migration (where only workers recruited through contractors were covered) to a broader definition covering any worker who moves from one state to work in another — including those who migrate independently without a contractor.
How courts have interpreted this term
In Re: Problems and Miseries of Migrant Labourers [(2021) SCC Online SC 490]
The Supreme Court, acting on its own motion during the COVID-19 pandemic, issued comprehensive directions for the protection of interstate migrant workers. The Court directed the creation of a national database of migrant workers (which informed the e-Shram portal), provision of community kitchens near workplaces, access to healthcare without proof of identity, and immediate transportation of stranded migrants to their home states. The Court observed that the existing legal framework had "manifestly failed" to protect migrant workers and called for robust implementation of the OSH Code.
Bandhua Mukti Morcha v. Union of India [(1984) 3 SCC 161]
The Supreme Court held that migrant workers engaged through contractors are among the most vulnerable sections of the workforce, often subjected to conditions amounting to bonded labour. The Court directed that state governments must ensure registration of all contractors and migrant workers, inspect working conditions, and take immediate action against violations. This expansive interpretation of Article 21 (right to life and dignity) has been the constitutional basis for all subsequent migrant worker protections.
People's Union for Democratic Rights v. Union of India [(1982) 3 SCC 235]
The Supreme Court (Asiad Workers case) held that construction workers brought from other states for construction projects must be treated as interstate migrant workers entitled to all protections under the 1979 Act. The Court established that the Act applies regardless of whether the workers were "recruited" in the formal sense — any arrangement, express or implied, by which workers from one state work in another state's establishment triggers the statutory protections.
Why this matters
India has an estimated 100-140 million interstate migrant workers — one of the largest internal migration flows in the world. These workers, predominantly from Bihar, Uttar Pradesh, Odisha, Jharkhand, and Chhattisgarh, form the backbone of construction, manufacturing, hospitality, and domestic work in destination states like Maharashtra, Delhi, Gujarat, Karnataka, and Tamil Nadu.
The COVID-19 pandemic of 2020 exposed the catastrophic failure of the existing legal framework. When lockdowns were imposed, millions of migrant workers found themselves stranded — without wages, accommodation, food, or transportation. The images of workers walking hundreds of kilometres to their home states became the defining humanitarian crisis of the pandemic and prompted both judicial intervention and accelerated legislative reform.
For employers and contractors, the key compliance obligations include: registration of migrant workers, payment of displacement allowance and journey allowance, provision of suitable accommodation, ensuring wages at parity with local workers, and maintaining records. Non-compliance under the 1979 Act is punishable with imprisonment up to one year and fine.
For migrant workers, the most significant development is the e-Shram portal launched in August 2021 — a national database of unorganised and migrant workers that aims to enable portability of benefits. As of 2026, over 29 crore workers have registered on e-Shram. The OSH Code's provisions, once operationalised, would build on this database to enable Aadhaar-linked benefit portability across states.
Related terms
Parent framework:
Related employment types:
Related protections:
Frequently asked questions
Is the Interstate Migrant Workmen Act still in force?
Yes. As of March 2026, the Interstate Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 continues to be in force. The OSH Code, 2020 which was to replace it has not been notified for implementation. All existing obligations under the 1979 Act — contractor licensing, registration, displacement allowance, journey allowance — remain applicable.
What benefits are migrant workers entitled to?
Under the 1979 Act, interstate migrant workers are entitled to: displacement allowance (50% of monthly wages or Rs 75, whichever is higher — as a one-time payment), journey allowance (outward and return railway fare), wages at par with local workers (not less than the minimum wage of the destination state), suitable accommodation, and free medical facilities. The employer or contractor must also maintain a register of migrant workers.
How does the e-Shram portal help migrant workers?
The e-Shram portal (eshram.gov.in) is a national database for unorganised and migrant workers, providing a unique Universal Account Number (UAN). It enables: identification and verification of migrant workers across states, portability of social security benefits (PDS, health insurance), access to accident insurance (Rs 2 lakh for accidental death), and data for policy planning. Over 29 crore workers have registered as of 2026.
This entry is part of the Veritect Indian Legal Glossary, a comprehensive reference of Indian legal terminology grounded in statutory text and judicial interpretation.
Last updated: 2026-03-27. Veritect provides this content for informational purposes and does not constitute legal advice.