Shafqat Ali Khan
Pakistan’s legal framework for workers’ compensation is spread across several labour laws, which can make it difficult for workers and employers to understand their rights and obligations. In Khyber Pakhtunkhwa (KP), the main laws relevant to work-related injuries and deaths are the Khyber Pakhtunkhwa Workers’ Compensation Act, 2013, the Provincial Employees’ Social Security Ordinance, 1965 (as applicable in KP), the Khyber Pakhtunkhwa Industrial and Commercial Employment (Standing Orders) Act, 2013, and the Khyber Pakhtunkhwa Occupational Safety and Health Act, 2022.
The Khyber Pakhtunkhwa Workers’ Compensation Act, 2013 is the principal law governing compensation for workers who suffer work-related injuries, occupational diseases, or death. It repealed the former federal Workmen’s Compensation Act, 1923 in KP. Under this Act, an employer is legally responsible for paying compensation when a worker is injured or dies due to an accident arising out of and in the course of employment. Section 4 and Schedule IV prescribe the compensation amounts, including PKR 300,000 as the statutory minimum compensation for a worker’s death.
The KP Occupational Safety and Health Act, 2022 does not prescribe compensation amounts. Instead, it requires employers to provide a safe and healthy workplace, identify workplace hazards, report serious accidents, investigate their causes, and take corrective measures to prevent similar incidents in the future.
Where applicable, workers may also receive benefits under the Provincial Employees’ Social Security Ordinance, 1965, such as medical treatment, sickness benefits, employment injury benefits, and survivor benefits. In addition, the Standing Orders Act, 2013 requires employers to provide certain employment protections and, where applicable, insurance benefits for permanent workers.
For construction projects, especially those financed by international development partners, statutory compensation should be considered the minimum legal requirement. Contractors should also comply with contractual obligations, workers’ compensation insurance, group life insurance, and any additional benefits provided under employment contracts.
The International Labour Organization (ILO) promotes employment injury protection based on the principle that workers and their families should receive adequate compensation, medical care, rehabilitation, and income support following work-related accidents or occupational diseases. The ILO also emphasizes accident prevention, employer responsibility, and safe working conditions.
Similarly, the World Bank Environmental and Social Framework (ESF), Environmental and Social Standard 2 (ESS2 – Labour and Working Conditions) requires borrowers and contractors to protect workers’ health and safety, comply with national labour laws, promptly report serious incidents and fatalities, investigate their causes, implement corrective actions, and ensure that workers or their legal heirs receive all compensation and insurance benefits required under national law and project contracts. While ESS2 does not prescribe a fixed compensation amount, it requires full compliance with applicable legislation and contractual obligations.
Overall, employers in KP are responsible not only for preventing workplace accidents but also for ensuring that workers or their legal heirs receive all statutory compensation and any additional contractual or insurance benefits without unnecessary delay. This approach is consistent with both ILO labour standards and the World Bank’s Environmental and Social Framework.
Shafqat Ali Khan | Social Development Specialist –
Khyber Pakhtunkhwa Integrated Tourism Development Project (KITE)
Department of Tourism, Govt. of Khyber Pakhtunkhwa
