Objectives
The objectives of the Act is to prevent the exploitation of migratory labour and to stop undesirable practice indulged into by the contractors/sardars/khatardars in certain part of the country. These contractors take migratory labour with the promise of providing employment out of the state and often force them to work under inhumane working conditions.
 

Scope and Coverage
The Act applies to whole of India and came into effect from 2nd October, 1980. It applies to
(a)    every establishment in which five or more inter-state migrant workmen whether in addition to other workmen or otherwise, were employed on any day during preceding twelve months, and
(b)    every contractor who employs or who employed five or more inter-state migrant workmen whether in addition to other workmen or otherwise, on any working day during preceding twelve months.
Administration
The Act is administered by the Central or the State Governments, depending on which is the appropriate government for a concerned establishment. All the Public Sector/Central Government undertaking establishments which are governed by the Central Govermnent including Railways, Cantonment Board, Ports, Mines, Oil Fields, Banking or Insurance Company, the appropriate government is Central Government and for the rest kind of establishments, the appropriate government is State Government.

Obligations of the Employer
The obligations of the employer are as follows :
(a) to obtain registration certificate from the appropriate government for engaging contract labour by payment of fee, which varies with the number of inter-state migrant labour engaged by the establishment;
(b) to ensure procurement of license by contractors who are employing more than five inter-state migrant workmen including the number of workmen employed by them for other establishments;
 (c)    to get the license of the contractor revoked, suspended or amended on completion of contract work, on adoption of unfair labour practice and increase or decrease in the number of inter-state migrant employees;
(d)    to ensure provisions of health and welfare facilities such as canteen, rest rooms, drinking water, washing facility, provisions for urinals and latrines, first aid, etc.;
(e)    to ensure maintenance of register of the contract labour himself as well as by the contractor;
(t) to display notice regarding nature and hours of work and rate of payment of inter-state migrant labour on the notice board at conspicuous places;
(g)    to ensure proper and timely payment of wages to contract labour in presence of his authorised representative and signing of wage register by the authorised representative in confirmation of the same;
(h)    to ensure deduction of various statutory deductions such as ESI, Provident Fund. Income Tax, etc. from the wages of inter-state migrant labour and depositing the same with appropriate agencies;
(i)    to ensure the compliance of various labour laws applicable to the Inter-state migrant labour by the contractor; and
(j)    to ensure compliance of all the provisions and liabilities of the contractor by him and to pay for the same himself in case of default of contractor including the payment of displacement allowance and journey allowance and to recover the same from any payment due to the contractor.
Obligations of the Contractor
The obligations of the contractor are as follows :
(a)    to obtain license from appropriate government for employing five or more inter-state migrant lalx~ur and to get it amended from time-to-time depending on the changes in the total number of workmen employed by . him:
(b)    to provide for various health and welfare facilities such as canteen, rest rooms, drinking water, washing facility, provisions for urinals and latrines, first-aid boxes, etc.;
(c)    to maintain proper register with details of inter-state migrant labour engaged by him and to furnish details thereof to the specific authority in the state wherefrom migrant labour has come and the state in which it is employed, including any change, within 15 days from the date of his employment;
(d)    to ensure timely payment of wages and other dues to the inter-state migrant labour in the presence of the authorised representative of principal employer;
(e)    to deduct statutory dues from wages of inter-state migrant labour and depositing the same with appropriate agencies;
(t) to ensure implementation and compliance of various labour laws applicable to inter-state migrant labour;
(g)    to provide and maintain suitable residential accommodation to such workmen during the period of their employment;
(h)    to provide prescribed medical facilities to the workmen free of charge;
(i)    to provide such protecting clothing to the workmen as prescribed;
(j)    to report to the specified authority of both the state and also the next of kin of the workmen in case of fatal accident or serious body injury;
(k)    to pay displacement allowance at the time of recruitment @ 50% of monthly wage or Rs. 75 whichever is higher in addition to the wages payable to him;
(l) to pay journey allowance for to and fro journey for going to his home town. The workman shall be paid wages for the duration of the journey as if he was on duty; and
(m) to issue a pass book with a photograph and to maintain it upto-date with every inter-state migrant worker with personal details such as name, place of the establishment, period of employment, rate and mode of payment of wages, displacement allowance, journey allowance, deductions made, etc.