40. (1) There shall be constituted a Paurashava Service in such manner and subject to such conditions as may be prescribed. (2) The Government may from time to time specify the posts in the Paurashavas which shall be filled by persons belonging to the Paurashava Service.

41. (1) The specified authority may, on the prescribed terms and conditions, appoint a secretary and one or more principal officers for a Paurashava who shall perform such functions as are assigned to them in relation to such Paurashava by or under this Ordinance. (2) A Paurashava may, and if so required by the specified authority shall, on the prescribed terms and conditions, appoint such other employees as are deemed necessary for the efficient performance of its functions under this Ordinance. (3) Subject to the provisions of this Ordinance and the rules,-(a) the specified authority may suspend, remove, dismiss, or otherwise punish any person appointed under sub-section (1); and(b) the Paurashava may suspend, remove, dismiss, or otherwise punish any person appointed under sub-section (2). (4) The specified authority may transfer any of the persons appointed under sub-section (1) from one Paurashava to another Paurashava within its jurisdiction. (5) In this section,-(a) “principal officer” means an officer notified as such by the Government; and(b) “specified authority” means an authority specified by rules.

42. (1) Notwithstanding anything contained in section 40, there shall be a Chief Executive Officer for such Paurashava as the Government may direct. (2) The Chief Executive Officer shall be appointed by the Government, or by such authority as the Government may specify, on such terms and conditions as may be prescribed. (3) Where a Chief Executive Officer is appointed for a Paurashava, he shall be the principal executive officer of the Paurashava, and all other officers and employees of the Paurashava shall be subordinate to him. (4) The Chief Executive Officer shall have the same right of being present at any meeting of the Paurashava or of any committee thereof and of taking part in the discussions thereat as if he were a commissioner or a member of such committee, and may, with the consent of the person presiding at the meeting, make a statement or an explanation of facts, but he shall not vote upon, or move, any motion at such meeting.

43. (1) A Paurashava may establish and maintain a Provident Fund and require any of its officers or employees to contribute to such Fund, and may itself contribute to it in such manner and proportion as may be prescribed. (2) A Paurashava may, in the prescribed manner, and with the previous sanction of the Government, provide for the payment of ¹[gratuity] to its officers and employees after retirement. (3) A Paurashava may, with the previous sanction of the Government, grant a special ²[* * *] gratuity to the family of any officer or employee who dies of disease or injury contracted or suffered in the discharge of official duties. (4) A Paurashava may, in the prescribed manner, operate a scheme of social insurance for its officers and employees and require them to subscribe to it. (5) A Paurashava may, in the prescribed manner, establish and maintain- ³[* * *](b) a Benevolent Fund out of which shall be paid any special ⁴[* * *] gratuity granted under sub-section (3) or such other relief as may be prescribed. (6) The Paurashavas shall contribute to the Funds established and maintained under sub-section (5) in such proportion or such amount and in such manner as may be specified by the Government.

44. The Government may, by rules,-(a) prescribe the conditions of service of the officers and employees of the Paurashavas;(b) prescribe the grades of pay for the officers and employees of Paurashavas;(c) prescribe a schedule of establishment setting forth the staff that shall be employed by a Paurashava;(d) prescribe the qualifications for various posts under Paurashavas;(e) prescribe the principles to be followed in making appointments to various posts under Paurashavas;(f) prescribe the method for the holding of enquiries in cases where disciplinary action is proposed to be taken against officers and employees of Paurashavas, and provide for penalties and appeals against orders imposing penalties; and(g) provide for other matters necessary for the efficient discharge of their duties by the officers and employees of Paurashavas.