Interstate Migrant Workmen Act Challenges: What Happens If Construction Firms Don't Comply?

Can you help me in clearing this query?

Interstate Migrant Workmen Act Implementation Challenges

The particular governments are not particular about implementing the Interstate Migrant Workmen Act, and practically, implementing the act is becoming difficult. What are the consequences that an organization (in the construction industry) will face if they do not follow it?

Regards,
GK - HR

As a matter of fact, if you engage any contractor from Orissa for the supply of manpower, they will likely have Interstate Migrant Workmen Act registration. According to this act, the migrated workmen must be provided with to and fro conveyance from their hometown to the workplace. The workmen should be paid according to the state's wage rate as applicable from time to time. In Andhra Pradesh, the wage rate is already higher than in any other state. Therefore, you need not worry about the Interstate Migrant Workmen Act. Simply ensure that your contractors maintain the relevant documents required by the IMWA.

Thank you.

Applicability of the Inter-State Migrant Workmen Act, 1980

1. The Inter-State Migrant Workmen Act, 1980 is applicable to every establishment in which, and to every contractor who employs or has employed 5 or more inter-state migrant workmen (whether or not in addition to other workmen) on any day in the preceding 12 months.

Definition of Workmen

2. Workmen are defined as any person employed in or in connection with the work of any establishment to perform skilled, semi-skilled, or unskilled manual, supervisory, technical, or clerical work for hire or reward. This definition excludes individuals who are:
- Employed in a managerial or administrative capacity
- Employed in a supervisory capacity but drawing wages exceeding Rs. 500/- p.m. or exercising managerial functions based on duties or vested powers

Importance of Compliance

It is clear that as a law-abiding citizen, you are required to implement the provisions set forth by the law. Compliance is essential as it is the responsibility of individuals, not just the government, to ensure enforcement. Governments may not prioritize enforcing unpopular laws among the ruling class, so it falls on law-abiding citizens to advocate for maintaining social balance, benefiting both business growth and societal harmony.

Consequences of Non-Compliance

Regarding consequences, there are various punitive actions for breaching different provisions, ranging from fines of Rs. 100 to Rs. 2000 and/or imprisonment up to two years. Should the decision to enforce the law hinge on the extent of the fine? Is this a reflection of ethical business practices? While no specific allegations are made, it is emphasized that individuals within power structures cannot unilaterally decide. HR professionals should advise and push for the implementation of legal provisions without waiting for bureaucratic decisions.

Thank you, GK, for raising this issue and allowing me to express my thoughts.

I work in an establishment in Hyderabad where there are a total of 800 contract workmen working under 30 contractors. Can somebody please suggest how I can find out if there are any inter-state migrant workmen working here? Checking what kind of records may provide accurate information?

Inspection Experiences

Has anyone had an inspection under this act? In that case, which records were checked by the Inspector to determine if there are any inter-state migrant workmen in the factory?