THE CENTRAL ADVISORY BOARD AND THE STATE ADVISORY BOARD UNDER THE CODE ON WAGES AND RULES MADE THEREUNDER

Central Advisory Board

Chapter V of the Code on Wages, 2019 (‘Code’ for short) provides for the establishment of Advisory Board. Section 42(1) of the Code provides that the Central Government shall constitute a Central Advisory Board. The Central Government may nominate the following members to be the members of the Central Advisory Board-

• representing employers;
• representing employees which shall be equal in number of the members belonging to the employees who are nominated as members;
• independent persons — not more than one-third of the total members;
• five representatives of State Governments nominated by the Central Government.

In addition to the above members at least one-third of the total members must be womenshall be appointed by the Central Government. The Chairperson is appointed by the Central Government from among the independent members.

Advisory functions of the Board-

The Advisory Board shall advise the Central Government on the reference of the issues relating to-

• fixation or revision of minimum wages and other connected matters;
• providing increasing employment opportunities for women;
• the extent to which women may be employed in such establishments or employments as the Central Government may, by notification, specify in this behalf; and
• any other matter relating to this Code.

Tenure of the Members

The tenure of the Chairman and all members of the Board is three years. The Chairperson or a member shall after the expiry of the said period of three years, continue to hold office until their successor is appointed or nominated. The members of the Board shall hold office during the pleasure of the Central Government. An outgoing member shall be eligible for re-nomination for the membership of the Board for not more than total two terms.

Resignation

A member of the Board, other than the Chairperson, may, by giving notice in writing to the Chairperson, resign from the membership. The Chairperson may resign by a letter addressed to the Central Government. The resignation shall take effect from the date of communication of its acceptance or on the expiry of 30 days from the date of resignation, whichever is earlier.

Vacancy

When a vacancy occurs or is likely to occur in the Board, the Chairperson shall submit a report to the Central Government immediately and the Central Government shall, take steps to fill the vacancy in accordance with the provisions of the Code.

Disqualification

A person shall be disqualified for being nominated as and for being a member of the Board–

•  if he is declared to be of unsound mind by a competent court; or
• if he is an un-discharged insolvent; or
•  if before or after the commencement of the Code, he has been convicted of an offence involving moral turpitude.

 If any question arises whether a person has been subject to disqualification, the decision of the Central Government thereon shall be final.

Casual vacancy

An independent member of the Board nominated to fill a casual vacancy shall hold office for the remaining period of the term of office of the member in whose place that independent member is nominated or till the time a regular incumbent join.

Meeting of the Board

The Chairman of the Board may convene a meeting at any time as deemed fit. If one half of the members requested the Chairman in writing for conduct of a board meeting, then the Chairman shall convene the meeting within 30 days from the date of receipt of such requisition.

The Chairperson shall fix the date, time and place of every meeting and a notice in writing containing the aforesaid particulars along with a list of business to be conducted at the meeting. The said notice shall be sent to each member by speed post or electronically at least 15 days before the date fixed for such meeting. In case of emergent meeting 7 days notice is to be given.

The Chairman shall preside the meeting. In the absence of the Chairman, the members of the Board shall elect from the members presented the meeting, to act as Chairman of the said meeting. The agenda of the meeting shall be decided by the Chairman. In the meeting, if any agenda is to be decided by voting the proper voting shall be conducted by the Chairman and if required to conduct secret polling and to also appoint a scrutiniser for declaring the votes obtained in favour and against the issue.

Quorum

The quorum for the advisory board meeting is one third of its total members. At least one member of the employer and one member of the employees shall also include in the quorum. If no quorum is present within the time stipulated the meeting shall be adjourned to a not later than 7 days from the date of original meeting. it shall be lawful to dispose of the business at such adjourned meeting irrespective of the number of members present. The adjourned date of meeting the venue shall be intimated to all the members of the Board.

Disposal of a business

All business of the Board shall be considered at the meeting of the Board and shall be decided by a majority of the votes of members present and voting. In the event of an equality of votes, the Chairperson shall have a casting vote. The Chairperson may, if he thinks fit, direct that any matter shall be decided by the circulation of necessary papers and by securing written opinion of the members. No decision on any matter shall be taken, unless supported by not less than two-thirds majority of the members.

Voting

Voting in the Board shall ordinarily be by show of hands, but if any member asks for voting by ballot or if the Chairperson so decides, the voting shall be by secret ballot and held in the manner as the Chairperson may decide.

Minutes of the meeting

The proceedings of each meeting of the Board showing inter alia the names of the members present thereat shall be forwarded to each member and to the Central Government as soon after the meeting as possible and in any case, not less than 7 days before the next meeting. The proceedings of each meeting of the Board shall be confirmed with such modification, if any, as may be considered necessary at the next meeting.

Cession of membership

If a member of the Board fails to attend three consecutive meetings without prior intimation to the Chairperson, he shall cease to be a member thereof.

State Advisory Board

The State Advisory Board and each of the committees and sub-committees thereof shall be constituted by the respective State. The State Advisory Board shall consist of persons––

1. representing employers;
2. representing employees which shall be equal in number of the members specified in clause (a); and
3. independent persons, not exceeding one-third of the total members of the Board or committee or sub-committee, as the case may be.

One-third of the members shall be women and one among the members of the members shall be appointed by the State Government. One member may be appointed as the Chairperson of the Board. The State Advisory Board shall appoint a member as the Chairperson of the committee or sub-committee.

Advisory role of State Board

In tendering its advice in the matters specified in clause (b) or clause (c) of sub-section (4), the State Advisory Board shall have regard to the number of women employed in the concerned establishment, or employment, the nature of work, hours of work, suitability of women for employment, as the case may be, the need for providing increasing employment opportunities for women, including part time employment, and such other relevant factors as the Board may think fit.

The State Government may, after considering the advice tendered to it by the State Advisory Board and after inviting and considering the representations from establishment or employees or any other person which that Government thinks fit, issue such direction as may be deemed necessary.

Regulation by Advisory Boards

The Central Advisory Board referred to in sub-section (1) and the State Advisory Board referred to in sub-section (4) shall respectively regulate their own procedure including that of the committees and sub-committees constituted by the State Advisory Board, in such manner as may be prescribed. The terms of office of the Central Advisory Board and the State Advisory Board including that of the committees and sub-committees constituted by the State Advisory Board, shall be such as may be prescribed