SBP fined Rs500,000 for denying paternity leave to male employee in landmark ruling

SBP fined Rs500,000 after Pakistan’s workplace harassment watchdog ruled that denying paternity leave to a male employee violated federal gender equality law. The decision marks an important step in strengthening employee rights and equal treatment.

The ruling was issued by the Federal Ombudsperson for Protection Against Harassment against the State Bank of Pakistan and its subsidiary, SBP Banking Services Corporation. The case emerged when a male officer requested 30 days of paternity leave following the birth of his child. His request was rejected on the grounds that no internal policy existed.

However, the Ombudsperson found that the Maternity and Paternity Leave Act, 2023, already guarantees such leave. The office ruled that granting maternity leave while denying paternity leave under the same law amounted to gender-based discrimination.

The Ombudsperson also dismissed the bank’s argument about the absence of policy. It stated that federal institutions must follow national welfare laws and cannot deny employees their legal entitlements. The decision stressed that caregiving is a shared duty and that equal leave supports family well-being and maternal health.

As part of the order, the bank must pay a total fine of Rs500,000. Out of this amount, Rs400,000 will be given to the affected employee as compensation. The remaining Rs100,000 will be deposited into the national treasury.

In addition to the penalty, the bank has been directed to grant the employee his full 30-day paternity leave. It must also update its internal policies to comply with the law and prevent similar violations in the future.

The SBP fined Rs500,000 ruling sends a clear message to employers across Pakistan. Authorities have made it clear that ignoring employee rights and gender equality protections will lead to legal consequences. The decision is being seen as a significant move toward fair and equal workplace practices.