Rules 38 to 44 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rules 38 to 44 complete Chapter VI. They say how long a Board member serves, how travel is paid, what support the Central Government provides, how many terms a person may serve, how a member resigns, when membership ceases for absence, and who is disqualified. The terms apply to the Chairperson and the members of the Central Advisory Board. An organisation nominating a representative should check these rules first; a legal consultation can help.
The term is three years from appointment or nomination, with continuation until a successor comes in; all members also hold office during the pleasure of the Central Government (rule 38). An outgoing member can be re-nominated for not more than two terms in total (rule 41). A member resigns by written notice to the Chairperson (the Chairperson by letter to the Central Government), effective on communication of acceptance or after thirty days, whichever is earlier (rule 42). A member who misses three consecutive meetings without prior intimation ceases to be a member (rule 43). Disqualification: unsound mind declared by a court, undischarged insolvent, or conviction for an offence involving moral turpitude (rule 44). The Rules apply where the Central Government is the appropriate Government; otherwise the State's own wage rules apply.
The section behind these rules
Section 42(11) of the Code leaves the terms of office of the Central Advisory Board to be "such as may be prescribed", and section 42(10) leaves its procedure to the rules. Section 42(1) and (2) set who the members are: employer and employee representatives in equal numbers, independent persons up to one-third, five State Government representatives, one-third women, and an independent member as Chairperson. See section 42. Rules 38 to 44 are the prescription for terms; procedure is in rules 29 to 37.
Rule 38: term of office
- The term of the Chairperson and members is three years from the date of appointment or nomination. Proviso: after three years they continue to hold office until a successor is appointed or nominated.
- An independent member nominated to fill a casual vacancy holds office for the remaining term of the member replaced "or till the time a regular incumbent joins".
- Official members hold office until replaced by other official members.
- Notwithstanding the rest of the rule, members hold office "during the pleasure of the Central Government".
So the three years is a normal term, not a guarantee: sub-rule (4) lets the Central Government end a membership at any time. The text does not say how, or whether reasons need be given.
Rule 39: travelling allowance
| Member | Travelling allowance |
|---|---|
| Official member (regular Government officers officiating as members in that capacity) | governed by the rules applicable to them for journeys on official duty, paid by the authority paying the salary |
| Non-official member (any member who is not official) | as per instructions issued by the Department of Expenditure, Ministry of Finance, Government of India from time to time, for attending the Board's meeting |
No rate appears in the rule. The Explanation defines "official member" and "non-official member" for this rule only.
Rule 40: officers and staff
"The Central Government may provide the necessary infrastructure, as it may think necessary for the proper functioning of the Board." The rule is permissive; it does not name a secretariat.
Rule 41: eligibility for re-nomination
"An outgoing member shall be eligible for re-nomination for the membership of the Board for not more than total two terms." The text does not say whether the first term counts, or whether a continued stay under the proviso to rule 38(1) counts as a term. The plain reading is that a member can serve at most two terms in all; the open point is how a casual-vacancy stretch under rule 38(2) is counted.
Rule 42: resignation and vacancy
- A member other than the Chairperson resigns by written notice to the Chairperson; the Chairperson resigns by letter to the Central Government.
- The resignation takes effect "from the date of communication of its acceptance or on the expiry of thirty days from the date of resignation, whichever is earlier".
- When a vacancy occurs or is likely to occur, the Chairperson reports to the Central Government immediately, and the Central Government "shall take steps to fill the vacancy in accordance with the provisions of the Code".
Illustration (hypothetical). A member gives notice on 1 March. If acceptance is communicated on 10 March, the resignation takes effect on 10 March. If nothing is communicated, it takes effect thirty days after the date of resignation. Which date counts as "the date of resignation" (date of the notice or of its receipt) is not stated.
Rule 43: cessation 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." Prior intimation avoids this. The rule does not say whether the Chairperson must record the cessation or inform the Central Government; under rule 42(3) a vacancy is reported.
Rule 44: disqualification
- A person is disqualified for being nominated as, and for being, a member if:
- (i) declared to be of unsound mind by a competent court;
- (ii) an undischarged insolvent; or
- (iii) before or after the commencement of the Code, convicted of an offence involving moral turpitude.
- If a question arises whether a person is disqualified, "the decision of the Central Government thereon shall be final".
Clause (iii) reaches back: a conviction before the Code's commencement counts. "Moral turpitude" is not defined in the Rules.
Summary
| Rule | Subject | Key point |
|---|---|---|
| 38 | Term | 3 years; continue till successor; casual vacancy; pleasure of the Central Government |
| 39 | Travelling allowance | official: own rules, paid by salary authority; non-official: Department of Expenditure instructions |
| 40 | Staff | infrastructure as the Central Government thinks necessary |
| 41 | Re-nomination | not more than two terms in total |
| 42 | Resignation | written notice; effective on acceptance or after thirty days |
| 43 | Cessation | three consecutive meetings missed without prior intimation |
| 44 | Disqualification | unsound mind, undischarged insolvent, moral turpitude conviction; Central Government decides |
Need help with Board nominations and representation?
Industry and employee bodies that nominate or support members need to track terms, attendance and eligibility. Our legal consultation team can advise on nominations, on attending and on responding to proposals before the Board.
Key takeaways
- Term: three years, continuing until a successor is appointed, subject to the pleasure of the Central Government.
- Re-nomination is limited to two terms in total.
- Resignation takes effect on acceptance or after thirty days, whichever is earlier.
- Three consecutive absences without prior intimation end membership.
- Unsound mind (court-declared), undischarged insolvency and a moral turpitude conviction disqualify; the Central Government's decision is final.
Read next
- Rules 29 to 32: Central Advisory Board, constitution and meetings
- Rules 33 to 37: Board quorum, voting, proceedings and witnesses
- Section 42: Central and State Advisory Boards
- 4 Labour Codes 2020: Code on Wages, IR Code, OSH Code and Social Security Code
Disclaimer: Based on the Code on Wages, 2019 (as enacted) and, where noted, the Code on Wages (Central) Rules, 2026 (G.S.R. 343(E), 8 May 2026), as on 1 October 2026. The Code is in force from 21 November 2025; State Governments make their own rules for establishments where the State is the appropriate Government, and wage rates are notified separately. Verify the current position before acting.