Objective: this Act also is to regulate the employment of workmen, specifically of inter-state migrant workmen. The provisions of the Act are to provide for their conditions of service and for matters connected therewith.

Applicability: The Act extends to the whole of India and applies to every establishment in which (important to note as differing from some other labour laws), five or more inter-state migrant workmen are employed or who were employed on any day of the preceding twelvemonths. These inter-state migrant workmen are not in addition to other workmen.

"Establishment" has a wider meaning. (See also 'Principal Employer'.). Every contractor employing such workmen is covered.

Definitions: Important definitions are -

Contractor: In relation to an establishment, means a person who undertakes (whether as an independent contractor, agent, employee or otherwise) to produce a given result for the establishment, other than a mere supply of goods or articles of manufacture to such establishment. It can be noted that as in the Contract Labour Act, mere supply of goods or articles does not make one a contractor, Further, contractor is free to employ workmen for the purpose or to supply workmen to the establishment. Also, again as in The Contract Labour Act Contractor includes a Sub-Contractor and Khatedar, Sardar, Agent or any other person by whatever name called. Sub-contracting being common, the Act provides for its coverage specifically those also being the persons who recruit or employ
inter-state migrant workmen.

Inter-State 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 such establishment.

It is important to note that a migrant workman is 'recruited in one state for employment in another. state". Also as In The Contract Labour Act what counts is such recruitment and employment. Knowledge or absence of it on the part of principal employer is not a decisive point.

Principal Employer: (See 'Applicability') refers to Head of the offices, department or authority or other specified officer and to the owner or occupier and manager under the Factories Act, 1948 and to the owner or agent and the named Manager in relation to a mine and to any person responsible for the supervision and control in relation to any other establishment.

Wages: This has meaning as per The Payment of Wages Act 1936. All remuneration (whether by way of salary, allowance or otherwise) expressed in terms of money or capable of being so expressed which would, if the terms of employment, express or implied were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, The Payment of Wages Act also specifically includes any remuneration payable under any award or Settlement or order or a Court as to which the person employed is entitled in respect of over time or holidays or any leave period, any additional remuneration payable under the terms of employment (whether called a bonus or by other name).

4. Any sum which by reason of termination of employment of the person employed is payable under any
    law, contract or instrument which provides for the payment of such sum, whether with or without
    deductions but does not provide for the time within which the payment is to be made.

5. any sum to which the person employed is entitled under any scheme framed under any law for the
    time being in force.

The definition under The Payment of Wages Act incorporated in this Act, is very wide and all inclusive, save the specific exclusion of (1) Bonus (2) value of house-accommodation, or of the supply of light, water, medical attendance or other amenity or of any service excluded from the computation of wages by a general or special order of the State Government (3) Employers' contribution to pension or provident fund and the interest accrued thereon (4) Travelling allowance or the value of travelling allowance (5) Defrayment of special expenses of the employed person, to which he is entitled and (6) Gratuity.

Workman: means any person employed in or in connection with the work of any establishment to do any skilled, semi-skilled or unskilled manual, supervisory, technical or electrical work for hire or reward, whether the terms of employment be express or implied.

As in the Contract Labour Act and The Industrial Disputes Act, specifically excluded are persons employed in 1) mainly managerial or administrative capacity 2) supervisory capacity, drawing wages exceeding Five hundred rupees per mensem, or exercises, either by the nature of the duties attached to the offices or by reason of the powers vested in him, functions mainly of a managerial nature. Important to note that as per The Industrial Disputes Act amendment w.e.f. 18-8-1984, Supervisory capacity person is excluded on drawing wages exceeding one thousand and six hundred rupees per mensem.

Employer's Obligation: Registration (Chapter II)

1. Registration of Establishment within prescribed time, in prescribed form and manner, on payment of
    prescribed fees.

2. Registration can be revoked in certain cases, on grounds such as misrepresentation or suppression
    of any material fact. Registering Officer is required to give a hearing to the Principal Employer.

Appropriate Government is required to approve the revocation and the Principal Employer to be communicated the order in writing.

3. Operation of the certificate of registration can be suspended, pending revocation, for any special
    reasons.

4. Prohibition against employment of Inter-State migrant workmen without registration.

Important to note that for the registration to be revoked or suspended pending revocation, the Principal Employer is entitled

i. hearing before the order and
ii. Communication of the order, in writing.

"Any special reasons" considered by the Registering Officer and the Appropriate Government must be, by legal pronouncements, relevant as seen on facts and merits of the case and the order must be a speaking order that shows the application of mind.

Contractor's Licencing (Chapter Ill)

1. Licence may contain such conditions, including in particular, (a) the terms and conditions of the
    agreement or other arrangement under which the workmen will be recruited (b) the remuneration
    payable and fixation of wages (c) hours of work and (d) other essential benefits.

2. Licence is issued by the appointed Licencing Officer on payment of prescribed fees and for any
    special reasons on furnishing of security for the due performance of the conditions of the licence.
    Procedure and the determination of the security has been specified.

3. Grant of licence, on application in the prescribed form and investigation by the licencing officer is valid
    for a specified period. Licence can be renewed, revoked, suspended and amended after compliance
    of prescribed procedure by the licensing officer.

4. Appeal allowed against the order of licencing officer in prescribed manner.

The Act also specifies the appointment of Inspectors and his powers like 1) entry into premises or place 2) examination of register, record or notices, 3) examination of person, 4) requiring of information, 5) seizure or taking copies of registers, record of wages, notices of portion thereof etc.

The Act further specifies under S .20 (4) " Any person required to produce any document or thing or to give any information required..... shall be deemed to be legally bound to do so within the meaning of
S .175 and S .176 of the Indian Penal Code (45 of 1860).

As a further deterent to the non-fulfilment of statutory obligations and as an additional effort to enforce the strict compliance by the Principal Employer and the Contractor the Act also specifies :-

S.20 (5) "The provisions of the Code of Criminal Procedure, 1973 (2 of 1974) shall, so far as may be, apply to any search or Seizure under this section as they apply to any search or seizures made under the authority of a warrant issued under section 94 of the said Code".

Miscelleneous :
The Act (Chapter VII) relates to provisions regarding. (1) The date of recruitment (2) Industrial Disputes (3) Maintenance of Registers and other records (4) Obstruction, Contravention of provisions (5) other offences by person and company (6)Cognizance of offences (7) Limitation of Offences (8) Effect of laws and agreements in consistent with the Act (9) Power to exempt in special cases (10) Protection of action taken under this Act and (11) Power to give directions and to make rules.

Schedule :
Specifically provided that the Inter-State Migrant Workmen are also covered by :-

1 .The Workmens Compensation Act, 1923.
2. The Payment of Wages Act, 1936.
3. The Industrial Disputes Act, 1947.
4. The Employers' State Insurance Act, 1948.
5. The Employers' Provident Fund and Miscelleneous Provisions Act, 1952.
6. The Maternity Benefit Act, 1961.