Section 42 Code on Wages, 2019: Central Advisory Board and State Advisory Boards

Section 42 of Code on Wages, 2019: Central Advisory Board and State Advisory Boards

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(1) The Central Government shall constitute the Central Advisory Board which shall consist of persons to be nominated by the Central Government—

(a) representing employers;

(b) representing employees which shall be equal in number of the members specified in clause (a);

(c) independent persons, not exceeding one-third of the total members of the Board; and

(d) five representatives of such State Governments as may be nominated by the Central Government.

(2) One-third of the members referred to in sub-section (1) shall be women and a member specified in clause (c) of the said sub-section shall be appointed by the Central Government as the Chairperson of the Board.

(3) The Central Advisory Board constituted under sub-section (1) shall from time to time advise the Central Government on reference of issues relating to—

(a) fixation or revision of minimum wages and other connected matters;

(b) providing increasing employment opportunities for women;

(c) 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

(d) any other matter relating to this Code, and on such advice, the Central Government may issue directions to the State Government as it deems fit in respect of matters relating to issues referred to the Board.

(4) Every State Government shall constitute a State Advisory Board for advising the State Government—

(a) in fixation or revision of minimum wages and other connected matters;

(b) for the purpose of providing increasing employment opportunities for women;

(c) with regard to the extent to which women may be employed in such establishments or employments as the State Government may, by notification, specify in this behalf; and

(d) in any other matter relating to this Code, which the State Government may refer from time to time to the Board.

(5) The State Advisory Board may constitute one or more committees or sub-committees to look into issues pertaining to matters specified in clauses (a) to (d) of sub-section (4).

(6) The State Advisory Board and each of the committees and sub- committees thereof shall consist of persons—

(a) representing employers;

(b) representing employees which shall be equal in number of the members specified in clause (a); and

(c) independent persons, not exceeding one-third of the total members of the Board or committee or sub-committee, as the case may be.

(7) One-third of the members referred to in sub-section (6) shall be women and one among the members specified in clause (c) of the said sub-section shall be—

(a) appointed by the State Government as the Chairperson of the Board;

(b) appointed by the State Advisory Board as the Chairperson of the committee or sub-committee, as the case may be.

(8) 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.

(9) 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.

(10) 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.

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

Legal Commentary & Landmark Judgments: Section 42

Section 42 of the Code on Wages, 2019 establishes the statutory framework for Central and State Advisory Boards, mandating tripartite governance representing employers, employees, and independent experts, enforcing a landmark mandatory one-third female representation quota, and empowering boards to advise governments on minimum wage fixation, national floor wages, and the expansion of women's employment opportunities.

Tripartite Composition and Gender Parity Mandate: Advisory Boards must consist of equal numbers of employer and employee representatives, plus independent persons not exceeding one-third of the total membership. Sub-sections (3) and (6) introduce a mandatory requirement: at least one-third of the total members must be women, ensuring gender-responsive labor policy and combating structural wage discrimination.
Central Advisory Board Functions: The Central Board advises the Central Government on fixing and revising minimum wages, setting the national floor wage across geographical regions under Section 9, expanding female employment, and resolving inter-state wage coordination issues. It possesses powers to constitute specialized committees to conduct ground-level socioeconomic surveys.
State Advisory Boards Functions: State Boards advise State Governments on minimum wage schedules, wage differentials across skill categories and agro-climatic zones, and policies to enhance female labor force participation, bridging the gap between national floor standards and regional industrial realpolitik.

Key Landmark Precedents:

People's Union for Democratic Rights (PUDR) v. Union of India (Asiad Workers Case) (1982) 3 SCC 235: The Supreme Court held that paying less than minimum wage constitutes 'forced labor' under Article 23 of the Constitution, emphasizing that advisory bodies and governmental wage fixation are constitutional imperatives to prevent human exploitation.
Sanjit Roy v. State of Rajasthan (1983) 1 SCC 525: The Supreme Court invalidated the payment of sub-minimum wages during famine relief works, holding that the State cannot bypass statutory minimum wage recommendations formulated by advisory mechanisms.
Chandra Bhavan Boarding and Lodging, Bangalore v. State of Mysore (1969) 3 SCC 84: The Supreme Court upheld the constitutional validity of tripartite advisory boards in minimum wage determination, ruling that procedural flexibility in consultations does not violate natural justice so long as employer and employee views are evaluated fairly.

Courtroom Practice & Strategic Litigation Guidance:

Corporate HR leaders, trade union representatives, and industry associations must actively monitor Advisory Board draft notifications, which form the bedrock of statutory minimum wage revisions and regional floor wages. Stakeholders should submit detailed cost-of-living indices, skill classifications, and regional inflation data during the public consultation window before draft recommendations are finalized into binding wage orders.

Section 42: Central Advisory Board and State Advisory Boards

Section 42 of Code on Wages, 2019: Central Advisory Board and State Advisory Boards

Legal Commentary & Landmark Judgments: Section 42