In a landmark decision, the Peshawar High Court (PHC) has mandated that all private schools in Khyber Pakhtunkhwa must provide social security benefits to their employees, including teaching staff, in compliance with the Khyber Pakhtunkhwa Employees Social Security Act 2021.
A two-judge bench, consisting of Justice Syed Arshad Ali and Justice Dr Khurshid Iqbal, upheld a January 6, 2025 notification that classified private schools as establishments covered under provincial social security law. The ruling came as the court dismissed a petition filed by the Private Education Network, which had contested the notification and sought exemption from providing such benefits to staff.
The court clarified that the social security law is a welfare-focused statute that explicitly applies to private educational institutions. It further rejected the argument that the Khyber Pakhtunkhwa Private Schools Regulatory Authority Act 2017 supersedes the social security legislation, explaining that the two laws serve different purposes: the regulatory law addresses school registration, fees, and academic standards, while social security law is dedicated solely to employee welfare.
Additionally, the bench turned down claims that compliance would place an undue administrative burden on private schools. The court also stated that institutions cannot avoid their obligations based on charitable status or regulation under other laws.
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With the petition dismissed, the stay order previously in effect has been lifted. Private schools across the province are now legally required to enroll their employees in the social security scheme and ensure they receive all entitled benefits.
