1. Inter-State Migrant Workmen Act, 1980 is applicable to (a) every establishment in which and (b)to every contractor, who employs or who employed 5 or more inter-state migrant workmen (whether or not in addition to other workmen) on any day of the preceding 12 months.
2. Workmen 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 clerical work for hire or reward, whether the terms of employment be express or implied but does not include any such person-
a. who is employed in a managerial or administrative capacity
b. who being employed in a supervisory capacity, draws wages exceeding Rs.500/-p.m. or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature
So, it is clear, if you law abiding citizen you are required to implement the provisions laid out. This law of the land and it is not left on the Stats to enforcement. No Govt is interested in enforcing any law which is not "popular" among the "ruling" (read class of society who has monetary or other powers) class. It is the law abiding citizens who should insist for enforcement of law to maintain social balance which is always good for growth of business and society as well as peace and democracy.
When you have raised the question of "consequences"- there are different punitive actions for breach of different provisions which ranges from Rs. 100 to Rs.2000 and/or imprisonment up to two years.
Would you look up to the extent of fine to decide whether to enforce the law or not? If this how a business is run? Is this the business ethics? Here I do not level any allegations on any one as I know the person raising question in this forum is forthright and it shows the sincerity to implement the law- but an individual in any power structure can not take decision any decision. HR people can only advice and insist for implementation of legal provisions. Let us not wait for the bureaucrats to decide on whether or not implement the law or not.
Thank you, GK for raising the issue and giving opportunity to express myself