The legal department gave its green signal after going through a proposed draft prepared by secondary education department.
This will be followed by presenting the proposal to the cabinet in May, the official informed.
After the cabinet ratifies it, the bill would be moved in the next session of the state assembly.
The tribunal will be responsible for hearing and settling disputes of teachers and employees of the basic and government aided secondary education schools.
Once approved by the legislature, the tribunal would function both at divisional and state levels, Jitendra Kumar, principal secretary secondary (Education), said.
Officials believed that once such a body comes into being, thousands of cases pertaining to disputes and other issues of teachers and staff would be settled here and would in turn bring down huge backlogs in various courts.