3 min read
Why This Is Now Mandatory for Employers
The Occupational Safety, Health and Working Conditions (OSH) Code, 2020 is fully enforceable in 2026. One of its biggest shifts is how it treats inter-state migrant workers.
Earlier, many businesses assumed migrant laws applied only to large construction sites. That assumption is now risky.
If your organization:
Employs 10 or more workers, and
Has employees who moved from another state for work
You fall under migrant worker compliance — even if you are an SME.
As per the Ministry of Labour and Employment, the OSH Code consolidates multiple labour laws and strengthens migrant worker protections.
Who Qualifies as an Inter-State Migrant Worker?
An employee is considered an Inter-State Migrant Worker if they:
Move from one state to another for employment
Earn up to ₹18,000 per month
Are hired directly or through a contractor
This applies across industries like logistics, manufacturing, hospitality, facility management, and construction.
Many employers are surprised to learn that even white-collar contract staff can fall under this definition.
The Journey Allowance Rule, Explained
This is the most misunderstood — and most ignored — requirement.
What the law requires
Employers must pay for to-and-fro travel of migrant workers to their home state at least once every 12 months.
Eligibility
Minimum service duration requirements may apply, as specified under applicable state rules
Home state and work state are different
Employers should confirm the exact eligibility criteria with current state-specific notifications, since implementation rules can vary.
Failure to provide journey allowance is treated as welfare denial, not a payroll error.
Journey Allowance: Cost vs Risk
Aspect | If Ignored | If Planned |
|---|---|---|
Compliance visibility | None | Clear |
Inspection risk | High | Low |
Legal exposure | Severe | Controlled |
Employee trust | Damaged | Improved |
Displacement Allowance: What Employers Owe
At the time of recruitment, employers must pay a one-time Displacement Allowance.
Amount payable
50% of monthly wages, or
₹75, whichever is higher
(This ₹75 floor is a longstanding statutory figure; in practice, 50% of monthly wages will typically exceed it at current wage levels. Employers should confirm the currently applicable provision directly, since implementation rules under the OSH Code are still being finalized by respective state governments.)
Even though the amount seems small, missing it is a technical violation that inspectors actively check.
Housing Standards Employers Must Meet
The OSH Code mandates "suitable accommodation" for migrant workers wherever applicable.
Inspectors generally evaluate:
Overcrowding
Hygiene and sanitation
Drinking water availability
Ventilation and safety
The biggest issue is not infrastructure — it's lack of documentation.
Housing Compliance Snapshot
Area Checked | Why It Matters |
|---|---|
Occupancy records | Prevents overcrowding |
Sanitation logs | Health compliance |
Water access | Welfare requirement |
Audit readiness | Inspection safety |
Welfare Portability for Migrant Workers
Migrant workers often lose access to welfare schemes when they move states. The 2026 framework focuses strongly on benefit portability.
One Nation, One Ration Card (ONORC)
Under ONORC, migrant workers can access Public Distribution System (PDS) benefits in their work state.
Maintaining accurate worker location data helps employers support compliance during inspections.
BOCW Cess Fund for Construction Employers
Construction employers must contribute to the Building and Other Construction Workers (BOCW) Welfare Fund.
This fund supports:
Medical assistance
Education benefits
Housing schemes
Grievance Redressal Requirements
The law mandates that migrant workers must have access to a toll-free grievance mechanism.
Labour officers typically verify:
Whether a grievance system exists
Language accessibility
Proof of resolution
Digital and WhatsApp-based grievance systems are now considered best practice.
Common Compliance Mistakes to Avoid
Most violations happen due to:
No journey allowance tracking
Missed displacement allowance
Poor housing records
Ignored welfare portability
Heavy dependence on Excel
These are process gaps, not intent gaps.
Staying Compliant: A Quick Summary
Migrant workers are no longer a grey area in Indian labour law.
Employers need to actively manage:
Journey allowance
Displacement allowance
Housing standards
Welfare portability
Grievance redressal
The law is clear. Enforcement is increasing. Being unprepared is now the biggest risk.
Understand how ZFour supports statutory compliance for Indian employers
Farheen Ahmed
HR Tech Content Strategist at ZFour Technology Private Limited
Research-driven content on HRMS, payroll, attendance management, employee management, and modern HR technology for Indian businesses.
