THE BONDED LABOUR SYSTEM (ABOLITION) ACT, 1992

(III of 1992)
CONTENTS

1. Short title, extent and commencement

2. Definitions

3. Act to override other laws, etc

4. Abolition of bonded labour system

5. Agreement, custom, etc., to be void

6. Liability to repay bonded debt to stand extinguished

7. Property of bonded labour to be freed from mortgage, etc

8. Creditor not to accept payment against extinguished debt

9. Authorities who may be specified for implementing the provisions of

this Act

10. Duty of District Magistrate and other officers designated by him

11. Punishment for enforcement of bonded labour

12. Punishment for extracting bonded labour under the bonded labour
system

13. Punishment for omission or failure to restore possession of property to,

bonded labourer

14. Abetment to be an offence

15. Vigilance Committees

16. Offences to be tried by the Magistrate

17. Cognizance of offences

18. Offences by companies

19. Protection of action taken in good faith

20. Jurisdiction of courts barred

21. Power to make rules

 TEXT

1
THE BONDED LABOUR SYSTEM (ABOLITION) ACT, 1992
(III of 1992)
[17th March, 1992]
An
Act
to provide for abolition of bonded labour system
WHEREAS clause (2) of Article 11 of the Constitution of the Islamic Republic
of Pakistan prohibits all forms of forced labour;
AND WHEREAS it is necessary to provide for abolition of bonded labour
system with a view to preventing the economic and physical exploitation of the
labour class in the country and for matters connected therewith or incidental thereto;
It is hereby enacted as follows:–

1. Short title, extent and commencement.– (1) This Act may be called the
Bonded Labour System (Abolition) Act, 1992.
2
(2) It extends to the whole of [the Punjab].
(3) It shall come into force at once.

2. Definitions.– In this Act, unless there is anything repugnant in the subject or

context,–
(a) "advance (peshgi)" means an advance (peshgi), whether in cash or in
kind, or partly in cash or partly in kind, made by one person (hereinafter
referred to as the creditor) to another person (hereinafter referred to as
the debtor);
(b) "bonded debt" means an advance (peshgi) obtained, or presumed to
have been obtained, by a bonded labourer under, or in pursuance of,
the bonded labour system;
(c) "bonded labour" means any labour or service rendered under the
bonded labour system;
(d) "bonded labourer” means a labour who incurs, or has, or is presumed
to have, incurred, a bonded debt;

(e) "bonded labour system" means the system of forced, or partly forced,
labour under which a debtor enters, or has, or is presumed to have,
entered into an agreement with the creditor to the effect that,–
(i) in consideration of an advance (peshgi) obtained by him or by
any of the members of his family [whether or not such advance

1
This Act of Parliament received the assent of the President on 11 March 1992, and was published in the Gazette of Pakistan,
Extraordinary, dated 17 March 1992.For statement of Objects & Reasons, see Gaz. of Pak. Extra.12 Nov. 1992, p. 1421.
2
Substituted for the word “Pakistan” by the Punjab Bonded Labour System (Abolition) (Amendment) Act 2012 (XXIV of 2012),
w.e.f. 11.2.2012, s.2; and published in the Punjab Gazette (Extraordinary), pages 40169-40170.
 (peshgi) is evidenced by any document] and in consideration of
the interest, if any, due on such advance (peshgi), or
(ii) in pursuance of any customary or social obligation, or
(iii) for any economic consideration received by him or by any of the
members of his family;
he would–
(1) render, by himself or through any member of his family,
or any person dependent on him, labour or service to the
creditor, or for the benefit of the creditor, for a specified
period or for an unspecified period, either without wages
or for nominal wages, or
(2) forfeit the freedom of employment or adopting other
means of livelihood for a specified period or for an
unspecified period, or
(3) forfeit the right to move freely from place to place, or
(4) forfeit the right to appropriate or sell at market value any
of his property or product of his labour or the labour of a
member of his family or any person dependent on him,
and includes the system of forced, or partly forced, labour
under which a surety for a debtor enters, or has or is
presumed to have, entered, into an agreement with the
creditor to the effect that, in the event of the failure of the
debtor to repay the debt, he would render the bonded
labour on behalf of the debtor;
(f) "family" means,–
(i) in the case of a male bonded labourer, the wife or wives, and in
the case of a female bonded labourer, the husband of the
bonded labourer; and
(ii) the parents, children, minor brother, and unmarried, divorced or
widowed sisters of the bonded labourer wholly dependent on
him;
3
[(ff) "Government" means Government of the Punjab;]
(g) "nominal wages", in relation to any labour, means a wage which is less
than,–
(a) the minimum wages fixed by the Government, in relation to the
same or similar labour, under any law for the time being in force;
and
(b) where no such minimum wage has been fixed in relation to any
form of labour, the wages that are normally paid, for the same or
similar labour, to the labourers working in the same locality; and
(h) "prescribed" means prescribed by rules made under this Act.
3
Inserted by the Punjab Bonded Labour System (Abolition) (Amendment) Act 2012 (XXIV of 2012), w.e.f. 11.2.2012, s.3; and
published in the Punjab Gazette (Extraordinary), pages 40169-40170.
3. Act to override other laws, etc.– The provisions of this Act shall have effect
notwithstanding anything contained in any other law for the time being in force or in
any instrument having effect by virtue of any such law.

4. Abolition of bonded labour system.– (1) On the commencement of this Act,

the bonded labour system shall stand abolished and every bonded labourer shall
stand freed and discharged from any obligation to render any bonded labour.
(2) No person shall make any advance under, or in pursuance of, the
bonded labour system or compel any person to render any bonded labour or other
form of forced labour.

5. Agreement, custom, etc., to be void.– Any custom or tradition or practice or

any contract, agreement or other instrument, whether entered into or executed
before or after the commencement of this Act, by virtue of which any person, or any
member of his family, is required to do any work or render any service as a bonded
labourer, shall be void and inoperative.

6. Liability to repay bonded debt to stand extinguished.– (1) On the

commencement of this Act, every obligation of a bonded labourer to repay any
bonded debt, or such part of any bonded debt as remains unsatisfied immediately
before such commencement, shall stand extinguished.
(2) After the commencement of this Act, no suit or other proceeding shall
lie in any civil court, tribunal or before any other authority for the recovery of any
bonded debt or any part thereof.
(3) Every decree or order for the recovery of bonded debt, passed before
the commencement of this Act and not fully satisfied before such commencement,
shall be deemed, on such commencement, to have been fully satisfied.
(4) Where, before the commencement of this Act, possession of any
property belonging to a bonded labourer or a member of his family was forcibly taken
by any creditor for the recovery of any bonded debt, such property shall be restored,
within ninety days of such commencement, to the possession of the person from
whom it was seized.
(5) Every attachment made before the commencement of this Act for the
recovery of any bonded debt shall, on such commencement, stand vacated; and,
where, in pursuance of such attachment, any movable property of the bonded
labourer was seized and removed from his custody and kept in the custody of any
court, tribunal or other authority pending sale thereof, such movable property shall
be restored, within ninety days of such commencement, to the possession of the
bonded labourer:
Provided that, where any attached property was sold before the
commencement of this Act, in execution of a decree or order for the recovery of a
bonded debt, such sale shall not be affected by any provision of this Act.
(6) Subject to the proviso to sub-section (5), any sale, transfer or
assignment of any property of a bonded labourer made in any manner whatsoever
before the commencement of this Act for recovery of bonded debt shall not be
deemed to have created or transferred any right, or interest in or encumbrance upon
any such property and such property shall be restored, within ninety days of such
commencement, to the possession of the bonded labourer.
(7) If restoration of the possession of any property referred to in sub-
section (4) or sub-section (5) or sub-section (6) is not made within ninety days from
the commencement of this Act, the aggrieved person may, within such time as may
be prescribed, apply to the prescribed authority for the restoration of the possession
of such property and the prescribed authority may, after giving the creditor a
reasonable opportunity of being heard, direct the creditor to restore to the applicant
the possession of the said property within such time as may be specified in the
order.
(8) An order made by any prescribed authority under sub-section (7) shall
be deemed to be an order made by a civil court and may be executed by the court of
the lowest pecuniary jurisdiction within the local limits of whose jurisdiction the
creditor voluntarily resides or carries on business or personally works for gain.
(9) Where any suit or proceeding for the enforcement of any obligation
under the bonded labour system, including a suit or proceeding for the recovery of
any advance (peshgi) made to a bonded labourer, is pending at the commencement
of this Act, such suit or other proceeding shall, on such commencement, stand
dismissed.
(10) On the commencement of this Act, every bonded labourer who has
been detained in civil prison, whether before or after judgment, shall be released
from detention forthwith.

7. Property of bonded labour to be freed from mortgage, etc.– (1) All

property vested in a bonded labourer which was, immediately before the
commencement of this Act, under any mortgage, charge, lien or other encumbrance
in connection with any bonded debt shall, in so far as it is relatable to the bonded
debt, stand freed and discharged from such mortgage, charge, lien or other
encumbrance; and where any such property was, immediately before the
commencement of this Act, in the possession of the mortgagee or the holder of the
charge, lien or encumbrance, such property shall, except where it was subject to any
other charge, on such commencement, be restored to the possession of the bonded
labourer.
(2) If any delay is made in restoring any property referred to in sub-section
(1) to the possession of the bonded labourer, such labourer shall be entitled, on and
from the date of such commencement, to recover from the mortgagee or holder of
the lien, charge or encumbrance, such mesne profits as may be determined by the
civil court of the lowest pecuniary jurisdiction within the local limits of whose
jurisdiction such property is situated.

8. Creditor not to accept payment against extinguished debt.– (1) No

creditor shall accept any payment against any bonded debt which has been
extinguished or deemed to have been extinguished or fully satisfied by virtue of the
provisions of this Act.
(2) Whoever contravenes the provisions of sub-section (1), shall be
punishable with imprisonment for a term which may extend to three years, or with
fine which shall not be less than fifteen thousand rupees, or with both.
 (3) The court convicting any person under sub-section (2) may, in addition
to the penalties which may be imposed under that sub-section, direct such person to
deposit, in court, the amount accepted in contravention of the provisions of sub-
section (1), within such period as may be specified in the order, for being refunded to
the bonded labourer.

9. Authorities who may be specified for implementing the provisions of

4
this Act.– The [* * * *] Government may confer such powers and impose such
5
duties on a [District Coordination Officer] as may be necessary to ensure that the
6
provisions of this Act are properly carried out and the [District Coordination Officer]
may designate an officer subordinate to him to exercise all or any of the powers, and
perform all or any of the duties, so conferred or imposed and specify the local limits
within which such powers or duties shall be carried out by such officer.
7
10. Duty of [District Coordination Officer] and other officers designated by
8 9
him.– (1) The [District Coordination Officer] authorised by the [* * * *] Government
10
under section 9, and the officer designated by the [District Coordination Officer]
under that section, shall, as far as practicable, try to promote the welfare of the freed
bonded labourer by securing and protecting the economic interests of such bonded
labourer so that he may not have any occasion or reason to contract any further
bonded debt.
11
(2) It shall be the duty of every [District Coordination Officer] and every
officer designated by him under section 9 to inquire whether, after the
commencement of this Act, any bonded labour system or any other form of forced
labour is being enforced by, or on behalf of, any person resident within the local
limits of his jurisdiction and if, as a result of such inquiry, any person is found to be
enforcing the bonded labour system or any other system of forced labour, he shall
forthwith take such action as may be necessary to implement the provisions of this
Act.

11. Punishment for enforcement of bonded labour.– Whoever, after the

commencement of this Act compels any person to render any bonded labour shall be
punishable with imprisonment for a term which shall not be less than two years nor
more than five years, or with fine which shall not be less than fifty thousand rupees,
or with both.

4
Omitted the word “Provincial” by the Punjab Bonded Labour System (Abolition) (Amendment) Act 2012 (XXIV of 2012), w.e.f.
11.2.2012, s.4; and published in the Punjab Gazette (Extraordinary), pages 40169-40170.
5
Substituted for the words “District Magistrate” by the Punjab Bonded Labour System (Abolition) (Amendment) Act 2012 (XXIV
of 2012), w.e.f. 11.2.2012, s.4; and published in the Punjab Gazette (Extraordinary), pages 40169-40170.
6
Substituted for the words “District Magistrate” by the Punjab Bonded Labour System (Abolition) (Amendment) Act 2012 (XXIV
of 2012), w.e.f. 11.2.2012, s.4; and published in the Punjab Gazette (Extraordinary), pages 40169-40170.
7
Substituted for the words “District Magistrate” by the Punjab Bonded Labour System (Abolition) (Amendment) Act 2012 (XXIV
of 2012), w.e.f. 11.2.2012, s.4; and published in the Punjab Gazette (Extraordinary), pages 40169-40170.
8
Substituted for the words “District Magistrate” by the Punjab Bonded Labour System (Abolition) (Amendment) Act 2012 (XXIV
of 2012), w.e.f. 11.2.2012, s.4; and published in the Punjab Gazette (Extraordinary), pages 40169-40170.
9
Omitted the word “Provincial” by the Punjab Bonded Labour System (Abolition) (Amendment) Act 2012 (XXIV of 2012), w.e.f.
11.2.2012, s.4; and published in the Punjab Gazette (Extraordinary), pages 40169-40170.
10
Substituted for the words “District Magistrate” by the Punjab Bonded Labour System (Abolition) (Amendment) Act 2012 (XXIV
of 2012), w.e.f. 11.2.2012, s.4; and published in the Punjab Gazette (Extraordinary), pages 40169-40170.
11
Substituted for the words “District Magistrate” by the Punjab Bonded Labour System (Abolition) (Amendment) Act 2012 (XXIV
of 2012), w.e.f. 11.2.2012, s.4; and published in the Punjab Gazette (Extraordinary), pages 40169-40170.
12. Punishment for extracting bonded labour under the bonded labour
system.– Whoever enforces, after the commencement of this Act any custom,
tradition, practice, contract, agreement or other instrument, by virtue of which any
person or any member of his family is required to render any service under the
bonded labour system, shall be punishable with imprisonment for a term which shall
not be less than two years nor more than five years or with fine which shall not be
12
less than [three hundred and fifty] thousands rupees, or with both; and out of the
fine, if recovered, payment shall be made to the bonded labourer at the rate of not
less than fifty rupees for each day for which bonded labour was extracted from him.

13. Punishment for omission or failure to restore possession of property to,

bonded labourer.– Whoever, being required by this Act to restore any property to
the possession of any bonded labour, omits or fails to do so, within a period of ninety
days from the commencement of this Act shall be punishable with imprisonment for a
13
term which may extend to one year, or with fine which may extend to [five] thousand
rupees, or with both; and out of the fine, if recovered, payment shall be made to the
14
bonded labourer at the rate of [one hundred] rupees for each day during which
possession of the property was not restored to him.

14. Abetment to be an offence.– Whoever abets any offence punishable under

this Act shall, whether or not the offence abetted is committed, be punishable with
the same punishment as is provided for the offence which has been abetted.

Explanation.– For the purpose of this section, "abetment" has the same meaning as
is assigned to it in the Pakistan Penal Code (Act XLV of 1860).

15. Vigilance Committees.– (1) Vigilance Committees shall be set up at the

District level in the prescribed manner, consisting, of elected representatives of the
area, representatives of the District Administration, Bar associations, Press,
15
recognized Social Services and [Labour Department of the Government].
(2) The following shall be the functions of the Vigilance Committees,
namely:–
(a) to advise the District Administration on matters relating to the effective
implementation of the law and to ensure its implementation in a proper
manner;
(b) to help in the rehabilitation of the freed boned labourer;
(c) to keep an eye on the working of the law; and
(d) to provide the bonded labourers such assistance as may be necessary
to achieve the objectives of the law.

12
Substituted for the word “fifty” by the Punjab Bonded Labour System (Abolition) (Amendment) Act 2012 (XXIV of 2012), w.e.f.
11.2.2012, s.5; and published in the Punjab Gazette (Extraordinary), pages 40169-40170.
13
Substituted for the word “one” by the Punjab Bonded Labour System (Abolition) (Amendment) Act 2012 (XXIV of 2012), w.e.f.
11.2.2012, s.6; and published in the Punjab Gazette (Extraordinary), pages 40169-40170.
14
Substituted for the word “ten” by the Punjab Bonded Labour System (Abolition) (Amendment) Act 2012 (XXIV of 2012), w.e.f.
11.2.2012, s.6; and published in the Punjab Gazette (Extraordinary), pages 40169-40170.
15
Substituted for the words “Labour Departments of the Federal and Provincial Governments” by the Punjab Bonded Labour
System (Abolition) (Amendment) Act 2012 (XXIV of 2012), w.e.f. 11.2.2012, s.7; and published in the Punjab Gazette
(Extraordinary), pages 40169-40170.
16. Offences to be tried by the Magistrate.– (1) A Magistrate of the first class
16
empowered in this behalf by the [* * * *] Government may try any offence under this
Act.
(2) An offence under this Act may be tried summarily.

17. Cognizance of offences.– (1) Every offence under this act shall be
cognizable and bailable.

18. Offences by companies.– (1) Where an offence under this Act has been
committed by a company, every person who, at the time the offence was committed,
was in charge of, and was responsible to, the company for the conduct of the
business of the company, as well as the company, shall be deemed to be guilty of
the offence and shall be liable to be proceeded against and punished accordingly.
(2) Notwithstanding anything contained in sub-section (1), where any
offence under this Act, has been committed by a company and it is proved that the
offence has been committed with the consent or connivance of, or is attributable to,
any neglect on the part of any director, manager or other officer of the company,
such director, manager or other officer shall be deemed to be guilty of that offence
and shall be liable to be proceeded against and punished accordingly.

Explanation.– For the purposes of this section,–

(a) "company" means any body corporate, and includes a firm or other
association of individuals; and
(b) "director", in relation to a firm, means a partner in the firm.

19. Protection of action taken in good faith.– No suit, prosecution or other

legal proceeding shall lie against Government or any officer of the Government for
anything which is in good faith done or intended to be done under this Act.

20. Jurisdiction of courts barred.– Save as otherwise provided in this Act, no

court shall have jurisdiction in respect of any matter to which any provision of this Act
applies and no injunction shall be granted by any court in respect of anything which
is done or intended to be done under this Act.
17
21. Power to make rules.– The [* * * *] Government may, by
notification in the official Gazette, make rules for carrying out the purposes of this
Act.

16
Omitted the word “Provincial” by the Punjab Bonded Labour System (Abolition) (Amendment) Act 2012 (XXIV of 2012), w.e.f.
11.2.2012, s.4; and published in the Punjab Gazette (Extraordinary), pages 40169-40170.
17
Omitted the word “Federal” by the Punjab Bonded Labour System (Abolition) (Amendment) Act 2012 (XXIV of 2012), w.e.f.
11.2.2012, s.8; and published in the Punjab Gazette (Extraordinary), pages 40169-40170.