State Bank Fined Rs 5 Lakh for Denying Paternity Leave to Officer
Officer
In a major decision strengthening workplace equality in Pakistan, the Federal Ombudsperson for Protection Against Harassment (FOSPAH) has imposed a Rs. 500,000 fine on the State Bank of Pakistan for unlawfully denying paternity leave to one of its officers.
The ruling, announced on February 16, 2026, has been described as a defining moment for paternity leave rules in Pakistan, reinforcing that parental rights apply across public and state-owned institutions.
Case Background: What Happened?
The Complainant
Syed Basit Ali, an OG-1 officer at SBP Banking Services Corporation.
The Issue
After the birth of his son in April 2025, he applied for 30 days of paid paternity leave.
The bank rejected the request, stating that such leave was not part of its internal service regulations.
Legal Framework
The case was reviewed under the Maternity and Paternity Leave Act, 2023, a federal law that grants:
- 180 days of paid maternity leave
- 30 days of paid paternity leave
The Ombudsperson ruled that SBP’s refusal violated federal law.
The Verdict and Financial Penalty
The Ombudsperson categorized the denial as:
- Gender-based discrimination
- Workplace harassment
Orders Issued:
- Rs. 400,000 to be paid directly to the employee as compensation
- Rs. 100,000 to be deposited into the national treasury
- Immediate approval of 30 days paid paternity leave
- Mandatory revision of SBP’s internal leave policies
This decision clarifies that federal welfare laws override institutional autonomy.
Why This Decision Is Important
The SBP argued that, as an autonomous body, it was not automatically bound by the 2023 Act unless formally adopted.
The Ombudsperson rejected this stance, emphasizing that:
- Childcare is a shared parental responsibility
- Denial of paternity leave reinforces gender inequality
- Federal social welfare legislation applies to state institutions
This ruling sets a clear precedent for other public sector bodies like:
- WAPDA
- Federal ministries
- Autonomous regulatory authorities
Understanding the Maternity and Paternity Leave Act 2023
The Maternity and Paternity Leave Act, 2023 applies across federal government departments and extends protections to many public sector institutions.
Key Provisions
Maternity Leave
- 180 days (first child)
- 120 days (second child)
- 90 days (third child)
Paternity Leave
- 30 days of fully paid leave
- Applicable for up to three children
- Can be availed within a specified period after childbirth
Paternity Leave Rules in Punjab, Pakistan
Many people search:
- Paternity leave rules in Punjab Pakistan
- Paternity leave Pakistan notification
- Paternity leave WAPDA
- Maternity and paternity leave notification 2023
In Punjab Government Departments
Punjab follows federal labor and welfare principles. However:
- Implementation may vary between provincial and federal institutions.
- Departments are required to align policies with federal protections.
Public servants can challenge denial of paternity leave before appropriate forums, including:
- Departmental grievance committees
- Ombudsperson offices
- Service tribunals
Does the Law Apply to Private Sector Employees?
The Act primarily covers federal government employees. However:
- Many private companies are voluntarily adopting paternity leave policies.
- Courts may interpret denial of such leave as discriminatory under broader workplace protection laws.
Legal experts believe this ruling will push private corporations to introduce clearer parental leave frameworks.
What About WAPDA and Other Autonomous Bodies?
Employees in autonomous institutions like WAPDA often face policy gaps.
This ruling sends a strong message that:
- Institutional autonomy cannot override federal welfare legislation.
- Internal service rules must comply with national law.
If a government-owned organization denies paternity leave, employees now have a stronger legal precedent to challenge it.
Broader Impact on Workplace Equality
This decision reshapes the conversation around:
- Shared parenting responsibilities
- Gender equality in employment
- Corporate accountability
- Family-friendly workplace policies
By recognizing denial of paternity leave as workplace harassment, the Ombudsperson has expanded the definition of gender discrimination in Pakistan.
Frequently Asked Questions
Is paternity leave mandatory in Pakistan?
Yes, under the Maternity and Paternity Leave Act 2023 for federal employees.
How many days of paternity leave are allowed?
30 days of paid leave.
Can an employer refuse paternity leave?
No, if covered under the Act. Refusal may lead to penalties.
Does Punjab government allow paternity leave?
Yes, subject to departmental rules and alignment with federal law.
Final Analysis
The Rs. 500,000 penalty against the State Bank of Pakistan marks a turning point in Pakistan’s labor rights landscape. It confirms that parental leave is not a privilege but a statutory right.
More importantly, it reinforces the idea that childcare is not solely a woman’s responsibility. With this ruling, Pakistan moves closer to modern workplace equality standards.
