FAQs - Bonded Labour in Pakistan

What is Forced Labour?

In accordance with the definition of the International Labour Organization (ILO), under the Forced Labour Convention, 1930 (No. 29), forced or compulsory labour is any kind of work or service rendered which is exacted from any person through implied coercion manifested as a penalty for which the person has not offered herself or himself voluntarily.

How is Bonded Labour different from Forced Labour?

Although Bonded Labour and Forced Labour share similar patterns of oppression, the difference lies between the exploitation based on monetary conditions.

At the simplest, Bonded Labour can be defined as when workers are forced into work or services to a creditor in exchange for a monetary advance, incur restrictions on their freedom of movement or occupation until this debt has been worked off. The debtors are often pressurized into mortgaging the services of not only themselves but of their family members as well for a specified or indeterminate period, with or without wages. The exploitative nature of the relationship between the creditor and debtor allows for the bondage to last for several years, in cases the debts can be inherited by children making it inter-generational.

What areas is Bonded Labour most concentrated in?

According to the Global Slavery Index (2018), Pakistan ranks as 8/167 countries for modern slavery. One of those forms, considered as modern slavery, is Bonded Labour (also interchangeable with Debt Bondage). Per ILO global estimates of 2016, 25 million people were in forced labour out of which 54.9% were concentrated in the Asia-Pacific region. The U.S Department of Labour’s 2020 list of goods produced under forced labour or bonded labour in Pakistan included: Cotton, Sugarcane, Wheat (Agriculture) Bricks, Carpets, Glass Bangles (Manufacturing) and Coal (Mining).

Has Pakistan ratified any ILO Conventions regarding bonded labour?

Yes, Pakistan has ratified the International Labour Organizations (ILO) Convention C029, Forced Labour Convention, 1930 and is in force since December 23, 1957. Pakistan has also ratified other similar conventions such as C105, Abolition of Forced Labour Convention, 1957 and C182 - Worst Forms of Child Labour Convention, 1999.

Can Bonded Labour manifest itself as different forms other than debt?

Yes, Bonded Labour can take place through other ways, namely:

• Bonded Labour in exchange of advance or an amount of money given before services are rendered defined per the legislation and commonly known as ‘Peshgi’, received by a person or their family
• Bonded Labour as a consequence of some social or customary obligation
• Bonded Labour in exchange for an economic benefit/consideration received by a person or their family
• Bonded Labour of a Guarantor in exchange for a debtor who was unable to pay off their debt

What are the indicators of any practice considered as Bonded Labour?

The main indicator of a practice being ‘bonded’ in nature can be assessed by the working conditions of the employee. Mentioned are a few indicators that can determine whether a practice falls under the definition of Bonded Labour:

• Wage rates: Whether the workers’ wages are equal to minimum wages or wages that are normally paid to that class of workers. If they are being paid lower wages (or wages lower than the amount negotiated or finalized earlier), they are in the conditions of bondedness. Moreover, if an employer is making undue deductions from wages, the employer is also creating a system of bondedness.
• Payment to the person: Whether wages are directly paid to the worker or someone else is taking away their wages.
• Working hours: Whether daily working hours are in accordance with the provisions of the law (i.e. 8 hours per day, 48 hours per week) and whether the person has the right to choose overtime work. If an employer is requiring any worker to work overtime more than what is provided in the law (a maximum of 12 hours per week), the employer is treating this worker as a bonded labourer.
• Freedom of employment/movement: Whether the person can leave their work (after giving notice) and move to some other place to start new work.
• Freedom of business: Whether the person can sell their family’s produce in the market
• Working under peshgi: Whether the person is working under “peshgi” or “bonded loan” as “peshgi” itself has no problem unless it creates bondage. Workers usually take advances from their employers but not all advances lead to bondedness.
• Documentation: Whether the worker can keep their identity documents with themselves or is kept in the custody of their employer (these can include passports, Identity Cards, Educational Degrees, Domicile etc).

Why is Bonded Labour considered a menace?

Bonded Labour is identified as a “practice similar to slavery” but it is not actual slavery. It is considered similar to slavery due to the nature of the obligations attached to the debt. The creditor often artificially inflates the amount of the debt, often adding excessive interest, deducting little or none from the actual debt. Additionally, the creditor not only coerces through violent threats but through instruments of obligation to repay the said debt. Extra ‘costs’ of living such as housing, clothing or providing food is added into the debt and the amount of debt keeps increasing making the bondage last a lifetime,[1] and even generations.

The Bondage System comes with an infringement of fundamental rights that the Constitution of the Islamic Republic of Pakistan have guaranteed. By keeping a person under Bonded Labour is taking away their fundamental Right to Freedom of Movement (Article 15), Freedom of Assembly (Article 16), Freedom of Association (Article 17), Freedom of Profession (Article 18), Freedom of Speech (Article 19) and the Right to be Equal Citizen (Article 25).

What are the relevant laws that have provisions regarding bonded labour?

Article 11(3) of the Constitution of Pakistan prohibits forced labour. In line with the constitutional guarantee, the following laws are in place to combat the Bonded Labour System, namely:

• The Bonded Labour System (Abolition) Act, 1992
• The Bonded Labour System (Abolition) Rules,1995
• The Sindh Bonded Labour System (Abolition) Act, 2015
• The Khyber Pakhtunkhwa Bonded Labour System (Abolition) Act, 2015
• The Punjab Bonded Labour System (Abolition) Act, 1992 (Amendment, 2012)
• The Gilgit-Baltistan Bonded/Forced labour system (Abolition) Act, 2020
• The Punjab Prohibition of Child Labour at Brick Kilns Act, 2016
• Prevention of Trafficking in Persons Act, 2018
• The Pakistan Penal Code, 1860

What are the relevant provisions under these laws?

Under these laws the following provisions are made:

• Abolition of the Bonded Labour System: In line with the aforementioned Act(s), Bonded Labour System stands abolished throughout the country from the time of the commencement of the Act(s).
• Unobligated to work: Through these laws, the debtor or their family are set free from any such obligation which requires them to work for the said creditor in a Bonded Labour System.
• Agreements nullified: Under these laws any custom or tradition or practice or any contract, agreement or other instruments, whether agreed upon before or after the commencement of this Act which requires the person or her/his family to be rendered in Bonded Labour stands nullified.
• Liability to payment revoked: In accordance with the laws, any liability to pay the debt on part of the debtor is extinguished.
• No-suit can be filed: Within these laws, no suit can be filed for recovery of this debt on part of the creditor against the debtor and every order issued before the commencement of these Act(s) for recovery of bonded debt is void.
• Restoration of property: The Act(s) also require the restoration of property of a bonded labour, which was forcibly taken by the creditor for recovery of his or her debt.
• Acceptance of Extinguished Debt: Under the Act(s) no creditor can accept any extinguished debt after the commencement of the Act(s), the acceptance of extinguished debt is a punishable offence with imprisonment and fine.
• Contract: Under the Punjab Prohibition of Child Labour at Brick Kilns Act, 2016 any employer employing a worker will be made under a contract. In case the employment is based on a peshgi or advance money, the contract will explain the amount of the peshgi and the time frame of returning the said amount. A copy of this contract will be sent to the local Labour Inspector.
• Concentrated amount of peshgi: the Punjab Prohibition of Child Labour at Brick Kilns Act, 2016 limits the amount of peshgi that can be made, i.e. the amount should not exceed PKR 50,000/-. The schedule for payment will be sent to the local Labour Inspector.
• Employment of children: The Punjab Brick Kiln (2016) Act determines that no child can be employed at any brick kilns
• Imprisonment relinquished: On the commencement of these laws, every bonded labourer who has been detained in civil prison, whether before or after judgement, shall be released from detention.

Non-discrimination policy: Under the Sindh Bonded Labour System (Abolition) Act, 2015 there shall be no discrimination while implementing these provisions on the basis of sex, religion, sect, colour, caste, creed, ethnic background in employment, professional development and the wages for work of equal value.

A similar provision is found in the Khyber Pakhtunkhwa Bonded Labour (Abolition) Act, 2015 where no discrimination can be made on the basis of gender, religion, sect, colour, caste, creed, ethnic background and political affiliation while implementing these provisions.

Can Bonded Labour Systems only be considered in a non-corporate setting?

No, due to the nature of the Bonded Labour Systems corporate offices or a ‘company’ as defined by the Bonded Labour System Abolition Act, 1992 et al. can be tried under the said laws. During the time the offence is committed, not only the owner of the company but the manager, director or officer can also be punished under this law.

How is human trafficking connected with Bonded Labour?

Bonded Labour is considered a practice similar to modern-day slavery due to the nature of exploitation which can be extracted by human traffickers on false hope of employment, fraud opportunities of monetary gain or simply by force and threat (kidnapping). Article 11 of the Constitution adopted in 1973, and amended in 2015, has strictly prohibited any form of slavery or facilitation to slavery including forms of forced labour.

The U.S State Department’s Office to Monitor and Combat Trafficking in Persons TIP Report, 2020 reported that over the past five years that the largest human trafficking problem is bonded labour, where human traffickers exploit domestic and foreign victims both in Pakistan and abroad through initial debt assumed by the worker as part of the terms of their employment.

Additionally, human traffickers buy, sell, rent, and kidnap children for forced labour in begging, domestic work, small shops, and sex trafficking. One other example is where Pakistan workers (men and women) migrate overseas, particularly to the Gulf states and Europe for low-skilled employment such as construction, domestic work, driving; but are trafficked into labour trafficking through false job offers, forged contracts of employment, sham recruitment agencies and fake labour agents. The workers are forced to work in sub-human conditions and in cases their documents, certificates are forcefully taken away, creating no escape and a system of bonded labour[2]. Apart from Article 11 of the Constitution, Pakistan Penal Code, 1860 (section 369-A) and Prevention of Trafficking in Persons Act, 2018 (section 3, subsection 3-b) have provisions for human trafficking in regard to bonded labour.

How are these provisions implemented?

Under Section 9 of The Bonded Labour System (Abolition) Act, 1992, the Provincial Governments can empower and impose duties on District Magistrates to ensure smooth implementation of these laws. The District Magistrates can further extend their powers to subordinate officers to implement these provisions.

Whereas under the Sindh Bonded Labour System (Abolition) Act, 2015 the duties fall with the Deputy Commissioner. In the Khyber Pakhtunkhwa Bonded Labour System (Abolition) Act, 2015 the power resides with Officers appointed by the Government which are deemed public servants as explained by Pakistan Penal Code (Act No. XLV of 1860).

Apart from the powers conferred, Provincial Governments are required to set up Vigilance Committees at the District level.

What are the functions of the said Vigilance Committee?

In accordance with the laws, the functions of the Vigilance Committee are:

• As an advisory entity to the District Administration on the effective implementation of these Acts
• Assist with the rehabilitation of the released bonded labourers in any way or form
• To establish a Complaint Office
• To procure any necessary documents from an establishment, employer, individual or company for the implementing of the said Act(s)
• To keep check and balance on the workings of the law

Who is part of the Vigilance Committee?

The Vigilance Committee will consist of the following members:

• Elected representatives of the area (MNA, MPA, Nazim)
• Representatives of District Administration (Police, judiciary, DCO, Agriculture, Health, labour)
• Bar associations
• Press
• Social Partners (Employees, Employers, NGOs)
• Social Services
• Labour Departments

Is there any financial aid for the bonded labourers?

The Government of Pakistan under the Bonded Labour System (Abolition) Rules,1995, has established a Bonded Labour System (Abolition) Fund which allocates budgets to the training and rehabilitation projects concerned with the released bonded labourers. It also provides legal and financial assistance to every labourer and their families freed from the Bonded Labour System.

Where can I find help/ How can I help?

The Governments of Punjab and Khyber Pakhtunkhwa have established a Legal Aid Service Units (LASU) under the Bonded Labour System (Abolition) Fund to legally assist bonded labourers. If you (or someone you know) are working under conditions of bondedness and forced labour, please call at this Toll-Free Help Line 0800-33888 or send an application to the Secretary Labour, Punjab along with your CNIC.

Are there any penalties under these laws?

Yes, the punishments under these laws differ where: