Section 3MM(1)(b) in Tamil Nadu District Municipalities Act, 1920
(b)all the employees, other than the provincialised employees, of the village panchayat, immediately before its constitution as Third Grade municipality, shall be the employees of such Third Grade municipality under this Act. The provincialised employees shall continue to serve under the Third Grade Municipality and they shall be transferred by the Director of Rural Development within three months from the date on which such Third Grade Municipality is constituted under this Act.