The 1601 Act sought to deal with 'settled' poor who had found themselves temporarily out of work—it was assumed they would accept indoor relief or outdoor relief. Neither method of relief was at this time in history seen as harsh. The act was supposed to deal with beggars who were considered a threat to civil order. The Act was passed at a time when poverty was considered necessary as fear of poverty made people work. In 1607 a House of Correction was set up in each county. However, this system was separate from the 1601 system which distinguished between the settled poor and 'vagrants'. There was much variation in the application of the law and there was a tendency for the destitute to migrate towards the more generous parishes, usually situated in the towns. This led to the Settlement Act 1662 also known as the Poor Relief Act 1662, this allowed relief only to established residents of a parish; mainly through birth, marriage and apprenticeship. Unfortunately, the laws reduced the mobility of labour and discouraged paupers from leaving their parish to find work. They also encouraged industry to create short contracts (e.g. 364 days) so that an employee could not become eligible for poor relief.