Section 76(2) in Andhra Pradesh Education Act, 1982
(2)Notwithstanding any contract or agreement or any law for the time being in force, every teacher or other person employed in any of the said schools immediately before the date on which the control and management thereof is transferred to the Zilla Parishad shall, as from the said date, be deemed to be an employee of the Zilla Parishad and shall hold office on the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension, gratuity and other matters as he would have held under the Government, or Panchayat Samithi, as the case may be, until his remuneration and terms and conditions of service are duly altered by the Zilla Parishad:Provided that every such employee shall, within a period of three months or such other period beyond three months as may be specified by the Zilla Parishad, from the date of transfer of the control and management of the school, exercise his option either to be retrenched from the service on receipt of such retrenchment benefits as may be prescribed or to be absorbed in the service of the Zilla Parishad with effect from the said date and shall be governed by the said terms and conditions governing the said service which shall not be less favourable than those applicable to such employee prior to the said date.
