Bank ordered to grant employee paid leave and align policies with Maternity and Paternity Leave Act 2023
State Bank of Pakistan. Photo: File
ISLAMABAD:
The State Bank of Pakistan (SBP) has been fined Rs500,000 for unlawfully denying paternity leave to an employee after a decision by the Federal Ombudsperson for Protection Against Harassment Fouzia Waqar. The case was filed by Syed Basit Ali, an officer serving as OG-1 at the SBP Banking Services Corporation (BSC).
Following the birth of his son on April 4 2025, he applied for 30 days’ paternity leave on April 10. His request was refused because “no such leave existed under the prevailing policy of SBP,” although maternity leave is granted to female employees under the Maternity and Paternity Leave Act, 2023.
Ali argued that SBP BSC falls under the administrative control of the federal government, and therefore, the act applies. He added that SBP and SBP BSC “cannot selectively adopt provisions of the Act, granting maternity leave while denying paternity leave under the same statute.”
SBP’s counsel countered that the bank, as an autonomous entity, is not bound by the act and that paternity leave had not been incorporated into its service rules. The arguments focused heavily on matters of jurisdiction. The complainant’s counsel presented evidence, including job advertisements and bidding documents, to show that SBP BSC adheres to federal regulations.
In her ruling, Waqar stated: “The denial of paternity leave to the Complainant, to which he is legally entitled as a father, while allowing maternity leave to female employees, constitutes clear gender-based discrimination.”
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The judgment imposed a fine of Rs500,000 on SBP, directing that Rs400,000 be paid to the complainant within 30 days, while the remaining Rs100,000 is to be deposited into the national treasury. SBP has also been ordered to grant Basit Ali 30 days’ paid paternity leave and to update its leave policies to align fully with the Maternity and Paternity Leave Act, 2023.
Waqar further said, “Refusal to grant paternity leave is equivalent to harassment on the basis of gender. Providing maternity leave while denying paternity leave constitutes gender discrimination. Childcare is not solely the responsibility of women, and refusal of paternity leave undermines the shared responsibility of parents and the best interests of the child.”
The ruling further emphasized that statutory rights cannot be overridden by internal policies, and that federal institutions, including autonomous bodies, are bound by constitutional guarantees and welfare legislation.
“The order categorically rejected the long-standing claim of institutional autonomy used to deny statutory rights. State Bank of Pakistan is owned, controlled, and supervised by the Federal Government, and SBP Banking Services Corporation, as its wholly owned subsidiary, cannot escape the application of federal welfare legislation,” the Ombudsperson added.
