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Employer’s duty while engaging Inter-State Migrant Workers Act

Posted by: ericmikio on 4 March 2019 in Amendments, Compliance, HR, Payroll, Talent Management

Are you engaging any Inter-State Migrant Worker in your establishment? If yes, scroll down to check your responsibilities as an Employer.

There is a specific employment Act in India, the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979, (ISMW) which regulates the employment of Inter State migrant workers and to their conditions of service.

Firstly one needs to understand the applicability of the Act. It is applicable to,

  • Every establishment in which five or more inter-State migrant workmen (whether or not in addition to other workmen) are employed or who were employed on any day of the preceding twelve months;
  • Every contractor who employs or who employed five or more inter-State migrant workmen (whether or not in addition to other workmen) on any day of the preceding twelve months

In case of the above, the employer’s duty is to:

  • Make an application to the registering officer, in such form and manner and on payment of such fees as may be prescribed, for the registration of the establishment
  • Maintain the registers indicating the details of interstate workers and make available for scrutiny by the statutory authorities
  • Every principal employer shall nominate a representative duly authorized by him to be present at the time of disbursement of wages by the contractor
  • Renewal and Amendment of Registration
  • Filing of Periodical returns
  • Principal employer shall be liable to bear the wages and other benefits to interstate workers in case of failure by the contractor to effect the same. Liable for the prescribed punishments for violations committed under this Act.
  • In case of any employment injury or fatal accident, ensure the same is informed to authorities of States concerned and to the kins of the deceased through the contractor.

Employment of inter-State migrant workmen in any establishment is prohibited unless it is duly registered under this Act.

The duty of the Contractor is to:

  • Make an application to the licensing officer, in such form and manner and on payment of such fees as may be prescribed, for obtaining the license
  • Maintain the registers indicating the details of interstate workers and make available for scrutiny by the statutory authorities
  • Renewal and Amendment of License
  • Filing of Periodical returns
  • Issue of passbook affixed with a passport-sized photograph of the workman indicating o the name and the place of the establishment where the worker is employed
    – the period of employment,
    – rates of wages, etc. to every inter-state migrant workman.
  • To report the incidence of fatal accident or serious injury of such workman to the Principal employer and specified authorities of both the States and also the next of kin of the workman.

Definition and Clarification on “Inter-State Migrant Worker”

Definition often misconstrued – as per Section 2 (e) of the Inter-State Migrant Workmen (Regulation of Employment and conditions of Service) Act, 1979, an Inter State Migrant Workmen 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.

  • This basically applies to Contractors who recruit personnel from one State and engage such personnel in other States through him in any other establishment
  • It does not apply to your establishment, if you are, as an employer, recruit personnel through an advertisement conducting interview at your premises
  • Also not to those who have Regional Offices, recruit and transfer to other States.
  • Further it is not applicable to a person of other State, walks-in/apply/ have proof of residence of the State of the employer/employment.

Definition on Establishment: as per the Section 2(d) of the Act, an “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

Rights of interstate workers

In addition to the general labour laws applicable to all workers, the interstate workers are entitled with

  • equal or better wages for the similar nature of work
  • duration of work applicable for the local workmen
  • stipulated minimum wages under the Minimum Wages Act, 1948
  • displacement allowance (Section 14),
  • home journey allowance (Section 15) including payment of wages during the period of journey,
  • suitable residential accommodation and medical facilities free of charge on mandatory basis
  • Termination of employment after the contract period without any liability.
  • Right to lodge compliant with the authorities within three months of any incident, accident, etc.
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TAGS: Amendments Compliance HR Contractors Employer Responsibilities Employment Inter-State Migrant Workmen Payroll Recuitment

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