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Rules 38 to 44 of the Code on Wages (Central) Rules, 2026: Board Members, Term, Allowances and Disqualification

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...

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Labour Laws
Published
October 1, 2026
Last updated
Oct 1, 2026
Reading time
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Last updated: October 2026Verified against: Government sources

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 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

  1. 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.
  2. 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".
  3. Official members hold office until replaced by other official members.
  4. 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

MemberTravelling 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

  1. A member other than the Chairperson resigns by written notice to the Chairperson; the Chairperson resigns by letter to the Central Government.
  2. 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".
  3. 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

  1. 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.
  1. 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

RuleSubjectKey point
38Term3 years; continue till successor; casual vacancy; pleasure of the Central Government
39Travelling allowanceofficial: own rules, paid by salary authority; non-official: Department of Expenditure instructions
40Staffinfrastructure as the Central Government thinks necessary
41Re-nominationnot more than two terms in total
42Resignationwritten notice; effective on acceptance or after thirty days
43Cessationthree consecutive meetings missed without prior intimation
44Disqualificationunsound 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

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.

Quick recapKey facts & short answers

Key Facts About Rules 38 to 44

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

How long is a Board member's term?

Three years, and until a successor is appointed or nominated (rule 38(1)).

Can the Central Government remove a member earlier?

Rule 38(4) says members hold office during its pleasure.

Rules 38 to 44: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

People also ask

Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

Three years, and until a successor is appointed or nominated (rule 38(1)).

Rule 38(4) says members hold office during its pleasure.

Not more than two in total (rule 41).

On communication of its acceptance or on the expiry of thirty days from the date of resignation, whichever is earlier.

Missing three consecutive meetings without prior intimation to the Chairperson (rule 43).

The Central Government, whose decision is final (rule 44(2)).