(1) The Managing Committee of every recognised private school shall enter into a written contract of service with every employee of such school :
Provided that if, at the commencement of this Act, there is no written contract of service in relation to any existing employee of a recognised school, the Managing Committee of such school shall enter into such contract within a period of three months from the commencement of this Act :
Provided further that no contract referred to in the foregoing proviso shall vary to the disadvantage of any existing employee the term of any contract subsisting at the commencement of this Act between him and the school.
(2) A copy of every contract of service referred to in sub-section (1) shall be forwarded by the managing committee of the concerned recognised school to the Director who shall on receipt of such copy register it in such a manner as may be prescribed.
(3) Every contract of service referred to in sub-section (1) shall provide for the following matters, namely :-
(a) the terms and conditions of service of the employee, including the scale of pay and other allowances to which he shall be entitled;
(b) the leave of absence, age of retirement, contributory provident fund or any other benefits to which the employee shall be entitled;
(c) the penalties which may be imposed on the employee for the violation of any code of conduct or the breach of any term of the contract entered into by him;
(d) the manner in which disciplinary proceedings in relation to the employee shall be conducted and the procedure which shall be followed before any employee is dismissed, removed from service, or reduced in rank;
(e) arbitration of any dispute arising out of any breach of contract between the employee and the managing committee with regard to:—
(i) pay and other allowances ;
(ii) leave of absence, age of retirement, contributory provident fund and other benefits ; and
(iii) any disciplinary action leading to the dismissal or removal from service or reduction in rank of the employee ;
(f) any other matter which in the opinion of the managing committee, ought to be, or may be specified in such contract.