Landmark Ruling: SBP Fined Rs 500,000 for Denying Paternity Leave to Employee. -

In a landmark ruling for workers’ rights, the Federal Ombudsperson for Protection Against Harassment, Fouzia Waqar, has fined the State Bank of Pakistan (SBP) Rs 500,000 for unlawfully denying paternity leave to an employee. The decision follows a complaint by SBP employee Syed Basit Ali, whose request for 30 days of paid leave following the birth of his son in April 2025 was rejected by the bank.

Key Points of the Ruling

Discriminatory Action: The Ombudsperson ruled that the SBP’s refusal, based on its internal policies, constituted gender-based discrimination and a violation of statutory rights.
Financial Compensation: Of the total fine, the SBP has been ordered to pay Rs 400,000 directly to Syed Basit Ali as compensation for the mental distress and hardship caused.
Policy Overhaul: The central bank has been directed to immediately update its internal HR policies to strictly comply with the Maternity and Paternity Leave Act 2023.
Statutory Rights: The ruling emphasized that childcare is a shared responsibility and that statutory rights granted by federal law cannot be overridden by the internal regulations of any institution, including the central bank.

This case sets a significant legal precedent for the implementation of paternity leave laws across all government and financial institutions in Pakistan, reinforcing the shift toward gender equality in the workplace.