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Does the teacher punish the students with money and reward them for breaking the law?
Legal analysis:

Schools have no right to impose fines on students. Schools have no right to punish students. They can educate students, but fines are illegal. The school has no right to fine under any circumstances. If they are fined, they can report to the higher authorities. It is illegal for teachers to fine students. Teachers are not civil servants of administrative organs, nor are they personnel of agencies entrusted with law enforcement, and they have no right to impose administrative penalties on students with fines. Teachers are not representatives of the legislature, and they have no right to set fines. In short, the teacher violated the provisions of the Administrative Punishment Law of the People's Republic of China, and only laws, administrative regulations and local regulations can formulate administrative penalties with the nature of fines. Teachers should treat students equally in education and teaching, pay attention to their individual differences, teach students in accordance with their aptitude and promote their all-round development. Teachers should respect students' personality, and must not discriminate against students, and must not punish students with corporal punishment, corporal punishment in disguised form or other acts that insult their personal dignity, or infringe upon their legitimate rights and interests.

Legal basis:

Administrative Punishment Law of the People's Republic of China

Seventeenth organizations authorized by laws and regulations to manage public affairs can impose administrative penalties within the scope of statutory authorization.

Article 18 An administrative organ may, in accordance with the provisions of laws, regulations or rules, entrust an organization that meets the conditions stipulated in Article 19 of this Law to impose administrative penalties within its statutory authority. The administrative organ shall not entrust other organizations or individuals to implement administrative punishment. The entrusting administrative organ is responsible for supervising the administrative punishment behavior of the entrusted organization and bearing legal responsibility for the consequences of this behavior.

The entrusted organization implements administrative punishment in the name of the entrusted administrative organ within the scope of entrustment; No other organization or individual may be entrusted to implement administrative punishment.

Derivative problem:

Is it illegal to receive gifts on Teachers' Day?

Teachers ask for or accept gifts, securities, payment vouchers and other property from students and parents in any way. If the circumstances are minor, it is illegal and disciplinary, and if the circumstances are serious, it is illegal and criminal. According to the relevant provisions of the Criminal Law, public officials who receive gifts or gifts totaling more than 5,000 yuan can be considered as accepting bribes. The same is true of teachers in private schools, which belong to general commercial bribery and can be sentenced with reference to the crime of accepting bribes by enterprises and company personnel.