ROLE AND FUNCTION OF AN EFFECTIVE ADVISORY BOARD UNDER CODE ON WAGES, 2019 WITH RESPECT TO MINIMUM WAGES ACT, 1948

By- Anjanee Goel[1]

In the search for better corporate governance, and appropriately composed and assembled efficient advisory board can provide non-obligatory but knowledgeable assistance and serve as a remarkable friend. Hence, provisions relating to the Central level and State level Advisory boards under the Code on wages 2019 and Minimum Wages Act 1948 have been discussed below.

According to the Code on Wages, 2019, the floor pay payable to employees will be chosen in meeting with the Central Advisory Board and certain State Governments as the Central Government regards vital.

Section 42 of Chapter V of the Code on Wages, 2019 states that the Central and State governments will establish Advisory Boards which will comprise of following people:

(a) Employers,

(b) Employees (in equivalent number as employers),

(c) Independent people, and

(d) 5 delegates of such State Governments as might be designated by the Central Government.

State Advisory Boards will comprise of employers, independent representatives, and employees.

Further, 33% (one-third) of the total individuals on both the Central and State Boards will be females under the wages code, 2019. This step is taken for the upliftment of women.

The Boards under the Code will prompt particular governments on different issues including:

(a) Fixation or amendment of least wages and other associated matters;

(b) Providing females with employment opportunities;

(c) The Central Government may, by notification, indicate the degree to which ladies might be employed in such foundations or jobs; and

(d) Any other issue identifying with this Code.

With respect to Section 7 of the Minimum Wages Act, 1948, the Appropriate government will designate an advisory board for the rationale of coordinating the work of committees and sub-committees nominated underneath section 5 and advising the appropriate Government in general, in the matter of putting in place and updating minimum wage rates.

Section 8 of Minimum Wages Act, 1948 states that the Central Government will choose a Central Advisory Board for the reason for prompting the Central and State Governments in the issues of the fixation and correction of minimum rates of wages and different issues beneath this Act and coordinating the work of the Advisory Boards.

The Central Government representing managers and workers in the programmed employments will nominate the persons of the Central Advisory Board who will be equivalent in number.

The Central Government will appoint one of the independent persons out of the sum total independent individuals not exceeding one-third (33.3%) of its total number of members as the chairman of the board.

Thus, through these provisions under the Minimum Wages Act, 1948 and The Code on Wages, 2019, relating to the establishment of Advisory boards and their functions, the overall betterment of Corporate Governance in any Organization is properly ensured and amended from time to time to maintain pace with the dynamic society and technological advancement.


[1] 5th Year, BBA LLB (H.) in Corporate Laws, UPES, Dehradun.

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