(1)Every whole-time employee working in any Improvement Trust, whether as a member of a Trust Service constituted under section 17 of the Punjab Town Improvement Act, 1922 (Punjab Act IV of 1922), or otherwise shall, on and from the appointed day, become a member of the corresponding Municipal Service or employee of the concerned Municipality, as the case may be, and shall hold his office therein by the same tenure and upon the same terms and conditions and with the same rights and privileges as to gratuity, if any, and other matters, as he would have held on the appointed day, if this Act had not come into force, and shall continue to do so unless and until his remuneration, terms and conditions, are duly altered by the Government or by the concerned Municipality with the previous approval of the Government, as the case may be.