Section 60: Journey allowance

The Occupational Safety, Health and Working Conditions Code, 2020 (Act No. 37 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter IX: Contract Labour & Inter-State Migrant Workers
Competent Labour Forum
Act No. 37 of 2020

Legal Commentary & Landmark Judgments: Section 60

Section 60 of the Code creates a mandatory statutory entitlement for inter-State migrant workers to receive a lump-sum journey allowance from the employer or contractor, covering travel expenses from their place of residence to the place of employment and return.

  • Statutory Travel Allowance Entitlement: Creates an enforceable right in favour of the migrant worker to receive travel fare, covering both outward journey to the place of employment and the return journey upon completion of tenure.
  • Periodicity & Minimum Service Qualification: Prescribes that the journey allowance must be paid at least once in twelve months, subject to the worker completing a prescribed minimum period of continuous service.
  • Prohibition of Wage Deductions for Travel: Explicitly bars employers from adjusting journey allowance against normal wages, bonus, or overtime compensation, treating travel support as an independent statutory amenity.
Key Landmark Precedents:
  • Bandhua Mukti Morcha v. Union of India (1984) 3 SCC 161: Supreme Court held that denial of journey allowance and repatriation expenses traps migrant laborers in conditions akin to debt bondage, violating the Bonded Labour System (Abolition) Act and Article 23.
  • In Re: Problems and Miseries of Migrant Labourers (2020) 10 SCC 459: Supreme Court directed Central and State Governments to provide free railway and bus transport to stranded migrant workers during emergency lockdowns, highlighting travel cost vulnerability.
  • Gammon India Ltd. v. Union of India (1974) 4 SCC 396: Supreme Court upheld travel allowances as an equitable legislative provision balancing the economic disadvantages of inter-State transit.
Courtroom Practice & Strategic Litigation Guidance:

Human resources and payroll departments must disburse journey allowances through direct bank transfer (DBT) directly into the worker's Aadhaar-linked account, generating verifiable digital receipts to rebut any allegations of non-payment during labor audits.