Chapter IV PROVISIONS RELATING TO EMPLOYEES

(1) Every teacher and every other employee of educational institution who was immediately before the appointed day, employed by the educational institution shall on the appointed day, become a teacher or other employee as the case may be, of the State Government in which the right, title and interest of the educational institutions have vested under this act and shall hold office or service under the State Government on the same terms and conditions and with the same right to pension gratuity and other matters as would have been admissible to him if there had been no such vesting and shall continue to do so unless and until his employment under the State Government is duly terminated after giving notice of three months or the salary for three months in lieu thereof or until his remuneration and condition of service are duly altered by the State Government: Provided that every such teacher or other employee shall within a period of six months or such further period beyond six months as may be fixed by the State Government, from the appointed day, exercise his option either to be retrenched from service or to be absorbed in the service of the Government on such terms and conditions as may be offered to him by the State Government: Provided further that when any teacher or other employee has been absorbed in the service of the Government under the first proviso then— (i) any service rendered by any such teacher or other employee immediately before the appointed day shall be deemed to be service rendered in connection with the affairs of the State; (if) the State Government may employ any such teacher or other employee in the discharge of such function as the State Government may think proper and every such teacher or other employee shall discharge those functions accordingly. If any question arises as to whether any teacher or other employee was employed wholly or mainly in connection with educational institution before the appointed day, the question shall be referee within a period of two years from the appointed day, to the State Government, which shall after giving a reasonable opportunity of being heard to the person concerned in the matter, decide it in such manner as it thinks fit and such decision shall be final. Notwithstanding anything contained in the Payment of Gratuity Act, 1972 or in any other law for the time being in force, the transfer of the service of any teacher or other employee under sub-section (1) shall not entitle any such teacher or other employee to any compensation or gratuity under those Acts or such other law, and no such claim shall be entertained in any Court, Tribunal or other authority.

(1) Where a provident superannuation welfare or other fund has been established by an educational institution for the benefit of the persons employed by it, the moneys relatable to the employees— (i) whose services are transferred by or under this act to the State Government, or (ii) who are in receipt of pension or other pensionary benefit immediately before the appointed day, shall, out of the money standing on that day to the credit of such provident superannuation welfare or other fund stand transferred to and vested in, the State Government free from any trust that may have been constituted by the educational institution in respect thereof. (2) The moneys which stand transferred in sub-section (1) to the State Government shall be dealt with by the State Government in such m be prescribed. (3) The State Government shall, as soon as may be, after the educational institution becomes vested in it, constitute, in respect of moneys and other assets which are transferred to and vested in it under this section, one or more funds having objects as similar to the objects of the existing trust, as in the circumstances may be practicable, so however, that the rights and interests of the beneficiary of the trust referred to in sub-section (1) are not in any way, prejudiced or diminished. (4) Where all moneys and other assets belonging to an existing trust are transferred to, and vested in the State Government under this section, the trustees of such trust shall, as from the date of such vesting stand discharged from the trust except as respects things done or omitted to be done before the date of such vesting.