Business

SBP Fined Rs. 5 Lac for Denying Paternity Leave to Employee

The Federal Ombudsman has declared 30 days of paternity leave mandatory under the Maternity and Paternity Leave Act, 2023, and imposed a Rs. 500,000 fine on the State Bank of Pakistan for denying leave to a male employee in what it termed clear gender discrimination.

The ruling stated that refusing paternity leave while granting maternity leave constitutes unequal treatment and violates constitutional guarantees of equality and dignity. The Ombudsman further held that absence of internal policy cannot override statutory rights once a federal law is in force.

The complaint was filed by an officer of the State Bank of Pakistan Banking Services Corporation, whose request for 30 days leave after the birth of his child was rejected. The Ombudsman ruled that such denial amounts to harassment in the form of gender discrimination under workplace protection laws.

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Rejecting the argument of institutional autonomy, the forum clarified that the State Bank and its subsidiary operate under federal oversight and cannot claim exemption from welfare legislation. It added that selective implementation of the law reinforces outdated gender roles and undermines shared parental responsibility.

The Ombudsman directed the bank to grant the employee 30 days of fully paid leave and align its policies with the law. Out of the total penalty, Rs. 400,000 will be paid to the complainant as compensation, while Rs. 100,000 will be deposited in the national exchequer.

The decision is being seen as a significant step toward enforcing workplace equality and expanding recognition of shared caregiving responsibilities in Pakistan.

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Published by
Muhammad Bilal