Sections 8 and 9 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.
Section 8 of the Code on Social Security, 2020 lists who cannot be a member of a Social Security Organisation or its committee, when a member can be removed, how a member resigns and what a member must do about a conflict of interest. Section 9 covers meetings, authentication of orders, the protection of acts against vacancies and defects, and members' fees.
A person is disqualified if adjudged an insolvent, of unsound mind, convicted of an offence involving moral turpitude, or an employer who has defaulted in paying dues under the Code. The Government that appointed the board can remove a member who is disqualified, who is absent without leave for more than three consecutive meetings, or who is unfit. A director who has a pecuniary interest in a matter must disclose it and stay out of that matter. Under s.9(3), no act is invalid merely because of a vacancy or a defect in the constitution of the board.
Section 8: disqualification and removal
Grounds of disqualification: s.8(1)
| Clause | Ground |
|---|---|
| (a) | Is or at any time has been adjudged an insolvent |
| (b) | Is found to be a lunatic or becomes of unsound mind |
| (c) | Is or has been convicted of an offence involving moral turpitude |
| (d) | Is an employer in an establishment and has defaulted in the payment of any dues under the Code |
| (e) | Is a member being a Member of Parliament or of a State Legislative Assembly, when he ceases to be such a member |
| (f) | Is a member being an MP or MLA and becomes a Minister of the Central or State Government, Speaker or Deputy Speaker of the House of the People or a State Legislative Assembly, or Deputy Chairman of the Council of States |
Explanation 1: if a question arises whether a person is disqualified under clause (d), it is referred to the appropriate Government, whose decision is final. Explanation 2: clause (f) does not apply to persons who are members ex officio by virtue of being a Minister.
If your organisation has a representative on one of these boards, our legal consultation team can help you check the member's position under these rules.
Removal: s.8(2) and (4)
| Who removes | Whom |
|---|---|
| The Central Government | Members of the Central Board, the Corporation and the National Social Security Board |
| The State Government | Members of the State Unorganised Workers' Board and the Building Workers' Welfare Board |
Under s.8(2), the Government may remove a member who (a) is or has become subject to a disqualification in s.8(1); (b) is absent without leave for more than three consecutive meetings of the organisation or a committee; or (c) has abused the position of office so as to make continuation detrimental to the public interest, or is otherwise unfit or unsuitable in that Government's opinion. Show cause is required before removal under (b) and (c). A member of the Executive Committee of the Central Board or the Standing Committee of the Corporation ceases to hold office on ceasing to be a member of the Board or Corporation.
Under s.8(4), the Government may, by order, remove a member if (a) a member representing employers, employees or unorganised workers ceases to adequately represent them; (b) a member representing expertise in a specified area is later found not to possess sufficient expertise; or (c) a Government member cannot continue to represent the Government because of exigencies of circumstances or services. Show cause is required under (a) and (b).
Resignation and conflicts: s.8(3) and (5)
- Resignation (s.8(3)): a member resigns in writing, under his hand, addressed to the Central or State Government that made the appointment. The office becomes vacant on acceptance of the resignation.
- Disclosure (s.8(5)): a member who is a director of a company and who, as director, has a direct or indirect pecuniary interest in a matter before the organisation or committee must, as soon as possible after the fact comes to his knowledge, disclose the nature of the interest. The disclosure is recorded in the proceedings, and the member must not take part in any proceeding or decision on that matter.
Section 9: procedure and validity
| Sub-section | Provision |
|---|---|
| 9(1) | A Social Security Organisation or committee meets at such intervals, and observes such procedure (including quorum), as the Central Government prescribes |
| 9(2) | All orders and decisions are authenticated by the Central Provident Fund Commissioner, the Director General, the Director General Labour Welfare, the State Principal Secretary or Secretary (Labour) of the respective organisation, or another officer the appropriate Government notifies; other instruments are authenticated by the signature of an officer authorised by the organisation |
| 9(3) | No act or proceeding is questioned merely because of a vacancy or a defect in the constitution of the organisation or committee |
| 9(4) | Members are entitled to such fee and allowances as the Central Government prescribes |
The Central Rules, 2026 deal with meetings, notice, list of business and quorum in rule 11; see rules 11 and 12. They apply where the Central Government is the appropriate Government; the State's own rules apply for State boards.
Example. An employer representative on a board has not paid a due under the Code for some months. Under s.8(1)(d) he is disqualified as an employer who has defaulted. If he disputes the default, Explanation 1 sends the question to the appropriate Government, whose decision is final. Separately, if he is a director of a company that stands to gain from a proposal before the board, s.8(5) requires him to disclose the interest and stay out of that item.
Need help with board nominations or compliance status?
A default in dues can disqualify an employer representative and, more practically, lead to assessment and recovery. Our legal consultation team can review your compliance position and advise on representation matters. Bring your latest returns and payment records.
Key takeaways
- Insolvency, unsound mind, moral turpitude conviction and default in dues under the Code disqualify a member.
- MPs and MLAs lose their seats when they stop being legislators, or become Ministers or presiding officers (except ex officio Ministers).
- Removal needs show cause for absence over three consecutive meetings, unfitness, loss of representativeness or lack of expertise.
- A company director with a pecuniary interest must disclose it and stay out of the matter.
- Acts of the board are not invalid merely due to a vacancy or defect in constitution.
Read next
- Sections 4 and 5: Central Board and ESIC
- Sections 10 to 12: executive heads, supersession and State Boards
- Sections 6 and 7: National and State boards
- Rules 11 and 12: board meetings and reconstitution
Disclaimer: Based on the Code on Social Security, 2020 (as enacted) and, where noted, the Code on Social Security (Central) Rules, 2026 (G.S.R. 344(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.