Provided that the municipality may move the State Government to take such action as they deem necessary.

Power of State Government to create a Local Fund Service :- (1) Notwithstanding anything contained in this Act [but subject to the provisions of Sections 81-A, 81-B and 81-C], *[* * #] the State Government may by notification, constitute any class of officers or servants of municipalities *[* * #] into a Local Fund Service for the State of Orissa :

Provided that no notification shall be issued under this sub-section unless

3[* * *#] the municipalities concerned have been consulted in respect thereof.

¹ Inserted by the Orissa Act 2 of 1992, w.e.f. 22.11.1991

² Inserted by the Orissa Act 23 of 1972, w.e.f. 30.12.1972.

4[(2) The State Government shall, subject to the provisions of Section 392, have power to make rules to regulate the classification, methods of recruitment, conditions of service, pay and allowances. discipline and conduct of the officers and servants belonging to the Local Fund Service and such rules may vest jurisdiction in

³ Omitted by the Orissa Act 16 of 1968, w.e.f. 01.08.1968

⁴ Substituted by the Orissa Act 23 of 1972, w.e.f. 30.12.1972.

relation to such service in the State Government or in such other authority or authorities as may be prescribed therein :

Provided that the terms and conditions of service prescribed under

such rules in respect of the officers and servants who, on the constitution of the

Local Fund Service have been absorbed therein, shall not in any way be less

favourable than the terms and conditions which were applicable to them

immediately prior to such constitution. |

1[(3) The State Government shall have power to transfer any officer or servant of the Local Fund Service working under a municipality to the service of any other municipality. ]

1. (4) The State Government shall have a power to issue such general or special directions as they may think necessary for the purpose of giving due effect to transfer ‘made under sub-section (3). ?[81-A. Exercise of option by officers and servants of municipalities :— (1) Before the constitution of the Local Fund Service, the State Government or, if empowered in that behalf, the concerned municipality, shall furnish detailed information in respect of the conditions of service prescribed for such Service to every officer or servant belonging to any class in respect of which such Service is to be constituted with a notice requiring him to exercise his option, within such period, not being less than thirty days, as may be specified therein, for not being absorbed in such Service.
2. (2) Any such officer or servant who fails to exercise his option within the aforesaid period shall be deemed to have opted for being absorbed in the Service.
3. (3) Where any such officer or servant exercise his option for not being absorbed in such Service within the said period, his services shall stand terminated with effect from the date of constitution of the Service.] 2[81-B. Municipality bound to employ and pay the dues of members of the Local Fund Service :- [Whenever any officer or servant belonging to the Local Fund Service is transferred or posted to a Municipality, the Executive Officer of the Municipality from which he is transferred shall be bound to relieve him as per orders of the State Government and the Executive Officer of the Municipality to which he is so transferred or posted shall be bound to accept his joining report forthwith, employ him in the service of Municipality and pay all amounts due to him on account of his pay, allowances and other dues from out of the Municipal Fund.]] 2[81-C. Consequences of termination of service :— (1) Where the services of any person have been terminated under sub-section (3) of Section 81-A, he shall, without prejudice to his claims to any leave, provided fund, gratuity or other benefits, if any, as an officer or servant of a municipality to which he may be entitled on his retirement or termination of service had the Local Fund Service not been constituted, be paid by the municipality under which he last served an amount determined in the following manner— I. Substituted by the Orissa Act 16 of 1968, w.e.f. 01.08.1968 No. 566, dt. 26.04.2002. (@ THE ORISSA MUNICIPAL MANUAL Amount to be paid I. Inthe case of a permanent employee—
   • (a) Where the continuous Pay for the remaining period of service service rendered by him or for six months, whichever is less. by the date of termination exceeds ten years.
   • (b) Where such services does Pay for the remaining period of not exceed ten years service or for three months, whichever is less. 2. In the case of a temporary Pay for one month. employee Explanation— For the purpose of this sub-section, 'pay" shall include dearness allowance and other ad hoc additions to pay by way of interim relief that may be admissible.
4. (2) For the purposes for calculating gratuity, if any, payable to any permanent employee whose services have terminated under sub-section (3) of Section 81-A, the period of qualifying service of such employee shall be increased by the period calculated on the basis provided hereunder— Period to be added 1 Where the period of actual qualifying One year service does not exceed five years. 2. Where such period exceeds five years Two years but does not exceed ten years. 3 Where such period exceeds ten years Three years. but does not exceed fifteen years. 4. Where such period exceeds fifteen years Four Years.] ![81-D. Governments power to issue orders during the period of transition :— The State Government may, as in their opinion the expediency of the circumstances requires, by general or special order, provide for any matter necessary, ancillary or incidental to the constitution and working of the Local Fund Service for which this Act makes no provision or makes insufficient provision : Provided that no such order shall be issued after the expiry of two years from the date of constitution of the Local Fund Service.]

² Inserted by the Orissa Act 23 of 1972, w.e.f. 30.12.1972

³ Substituted by the Orissa Act 6 of 2002, w.e.f. 26.04.2002, published in Orissa Gazette, Extraordinary