Section 4A(1)(b) in Tamil Nadu Panchayats Act, 1994
(b)all the employees, other than the provincialised employees, of the Town Panchayat immediately before its constitution as Village Panchayat shall be the employees of such Village Panchayat under this Act. The provincialised employees shall continue to serve under the Village Panchayat and they shall be transferred by the Director of Town Panchayats within three months from the date on which such Village Panchayat is constituted under this Act.