(1) On and from the appointed date, all the employees of the Corporation shall become employees of the Authority with out any break in service period and the condition of service of such employees shall not in any case be less favourable than the conditions of service in the Corporation applicable on the appointed date. The posts and the nomenclature of the employees of Authority for the posts and nomenclature of the employees of Corporation shall be determined by the Authority with in the prior approval of the State Government.
(2) It is hereby expressly provided with respect to the Provident Fund, Gratuity, Leave Encasement, etc. created for the benefit of the employees of the Corporation mat for all objectives and works, the Authority shall replace the Corporation from the appointed date, so that the operations and management of such schemes and funds, the liabilities of subscriber under the provisions of the trust deed shall be discharged property. Lastly, it is construed that all the rights, duties, powers and liabilities with respect to these funds, etc. shall vest in the Authority. It is hereby clarified that the services of all the employees of the Corporation shall be deemed to be continued uninterruptedly under the rules of above funds, schemes, etc