Inter-State Migrant Workers: Is the Employer Required to Pay for the Journey Home?
Published: 21 October 2026
An employee migrates from one State to another independently, secures employment directly with a company, and joins its payroll without the involvement of a contractor. When the festive season arrives, the employee asks HR for reimbursement of the fare to travel back to his native place.
HR declines the request, explaining that the employee was not recruited through a contractor and that the company does not offer Leave Travel Allowance (LTA).
However, this response may overlook a statutory benefit available under the Occupational Safety, Health and Working Conditions Code, 2020 (OSHWC Code). In certain circumstances, inter-State migrant workers who migrate independently may also qualify for journey allowance.
1. Can an Employee Who Migrates Independently Qualify?
Yes. The definition of an inter-State migrant worker under Section 2(1)(zf) of the OSHWC Code, 2020 extends beyond workers recruited through contractors. It also covers qualifying individuals who migrate independently from one State to another and obtain employment in the destination State, subject to the applicable statutory conditions.
The definition includes a monthly wage ceiling of ₹18,000 or such higher amount as may be notified by the Central Government.
Therefore, an employee's direct recruitment by an employer does not, by itself, exclude the employee from the definition. However, an out-of-State address alone is insufficient to establish eligibility; the applicable statutory definition and wage criteria must also be satisfied.
2. Does the Journey Allowance Apply to Every Establishment?
No. The applicability of the relevant provisions must be assessed against the statutory coverage requirements.
Section 59 of the OSHWC Code specifies the establishments covered by the provisions relating to inter-State migrant workers, including the threshold of 10 or more inter-State migrant workers employed on any day during the preceding twelve months.
For establishments covered by the relevant provisions, Section 61 provides for an annual lump-sum fare for the return journey between the worker's place of employment and native place, subject to the prescribed conditions.
Employers should therefore examine both the worker's eligibility and the establishment's coverage before deciding whether the benefit is payable.
3. What Happens When an Employee Changes Employers?
A particularly important compliance consideration arises when an eligible worker changes employment.
Under Central Rule 102, the journey allowance framework includes an eligibility requirement generally linked to at least 180 days of employment during the preceding twelve months, with the allowance payable once in twelve months, subject to the prescribed conditions.
The rule also addresses situations in which a worker changes employers. Where the worker has not received the journey allowance from the previous employer, the current employer may be required to pay the allowance when the applicable conditions are fulfilled.
These conditions include the relevant employment-period requirements and the worker's prescribed certificate concerning non-receipt of the allowance from the previous employer.
The rule also specifies the applicable travel arrangements, including train travel by at least second-class sleeper or travel by bus or another passenger transport system, subject to the relevant provisions.
Practical Example
Suppose an inter-State migrant worker completes:
100 days of employment with Employer A.
80 days of employment with Employer B.
The worker has completed 180 days across the two employment periods within the relevant twelve-month period.
If Central Rule 102 applies and all other statutory conditions are met, Employer B should not reject the claim solely because the worker has completed only 80 days with the current employer. The previous employment period and the prescribed declaration regarding the earlier allowance must also be considered.
This makes the collection and verification of previous-employment information an important part of the HR onboarding process.
4. Employer Compliance Checklist
Employers should consider the following measures to manage potential journey allowance obligations:
Identify eligible workers: Assess potentially qualifying inter-State migrant workers, including those recruited directly rather than through contractors.
Verify establishment coverage: Review the number of qualifying inter-State migrant workers employed during the preceding twelve months.
Check wage eligibility: Verify the applicable wage ceiling and other statutory conditions.
Maintain employment records: Record relevant employment periods, including previous employment where necessary to assess eligibility.
Obtain prescribed declarations: Where an employee changes employers, obtain the required certificate or declaration regarding non-receipt of the allowance from the previous employer.
Provide for eligible payments: Budget for applicable journey allowances and maintain supporting payment and compliance records.
Verify applicable rules: Confirm whether Central or State rules govern the establishment and check the relevant notifications and transitional provisions.
5. Which Rules Should Employers Follow?
The OSHWC Code, 2020, became effective on 21 November 2025. The final Central Rules were notified on 8 May 2026.
Central Rule 102 should be applied where the Central Rules govern the establishment. Establishments falling under State jurisdiction should verify the applicable State rules, notifications and transitional arrangements rather than automatically assuming that the Central Rule applies identically.
Employers should also verify the precise conditions governing the worker's eligibility, the establishment's coverage and the amount and mode of payment before approving or rejecting a claim.
Conclusion
The key compliance takeaway is that independent migration does not automatically disqualify an employee from journey allowance under the OSHWC Code, 2020.
Where the statutory conditions are satisfied, employers may have obligations even when workers were recruited directly and later changed employers. A blanket rejection based solely on the absence of contractor recruitment or an internal LTA policy may therefore be inappropriate.
HR and payroll teams should review their migrant-worker identification, onboarding documentation and reimbursement procedures to ensure that applicable statutory benefits are properly assessed.
Disclaimer: This article is intended for general information and compliance awareness. Eligibility and payment obligations depend on the applicable statutory provisions, rules, notifications, establishment coverage and jurisdiction. Employers should verify the current legal position before making a compliance decision.