Ombudsperson Fines State Bank of Pakistan Rs500,000 for Denying Paternity Leave Under 2023 Law

The Federal Ombudsperson for Protection Against Harassment of Women at the Workplace, Fauzia Viqar, has imposed a fine of Rs500,000 on the State Bank of Pakistan (SBP) for unlawfully denying paternity leave to a male employee, declaring the move a violation of workplace rights and an act of gender-based discrimination. The decision, reported by The News, marks a significant development for employment law compliance within Pakistan’s banking and financial sector.

The complaint was filed by a staff member of the SBP Banking Services Corporation after his request for 30 days’ paternity leave was rejected. According to the complainant, the request was denied on the grounds of the alleged “non-existence” of a policy, despite the Maternity and Paternity Leave Act 2023 already being in force. The ombudsperson’s ruling made it clear that the absence of an internal policy could not override a federal law enacted by parliament.

In her detailed order, Fauzia Viqar held that denying paternity leave under the Maternity and Paternity Leave Act 2023 amounted to harassment and discriminatory conduct. She emphasized that caregiving responsibilities should not be treated as the exclusive domain of women and that denying paternity leave reinforces outdated assumptions about gender roles. According to the ruling, such denial undermines shared parental responsibilities and may also negatively impact maternal health and family welfare.

The ombudsperson further grounded her decision in constitutional principles. She cited Article 38 of the Constitution, which directs the state to promote the social and economic well-being of citizens and ensure equitable treatment without discrimination. Viqar rejected SBP’s assertion of institutional autonomy, stating that the central bank, while operationally independent in certain respects, remains owned and supervised by the federal government. As such, it cannot bypass or selectively apply federal welfare legislation.

The ruling also addressed the broader issue of selective enforcement. Viqar noted that granting maternity leave while denying paternity leave under the same statute perpetuates gender stereotypes and undermines constitutional guarantees of equality, dignity, and fairness. She observed that modern workplace standards require inclusive parental leave policies that recognize the role of both parents in child-rearing.

As part of the order, the ombudsperson directed SBP to pay Rs400,000 in compensation to the complainant and Rs100,000 to the government exchequer, bringing the total penalty to Rs500,000. In addition to the financial penalty, SBP has been instructed to grant the employee 30 days’ paternity leave with full pay and to revise its internal leave policy to fully align with the Maternity and Paternity Leave Act 2023.

The decision carries implications beyond the central bank. By explicitly stating that federal institutions, including autonomous bodies, must adhere to welfare legislation, the ruling sets a precedent for regulatory compliance across government-linked organizations. Viqar warned that failure to implement statutory protections could expose institutions to further legal consequences for discriminatory practices.

For Pakistan’s banking and financial services sector, the case signals heightened scrutiny around employment policies and regulatory compliance. As workplace governance becomes increasingly aligned with statutory mandates and constitutional safeguards, institutions may be required to reassess internal policies to ensure they reflect evolving legal standards. The SBP case underscores that institutional autonomy does not extend to ignoring federally mandated employee rights, particularly those grounded in equality and non-discrimination.

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