PESHAWAR: The Peshawar High Court (PHC) has ruled that private school in Khyber Pakhtunkhwa must provide social security benefits to all their employees, including teachers. A two-judge bench, comprising Justice Syed Arshad Ali and Justice Dr Khurshid Iqbal, dismissed a petition filed by the Private Education Network (PEN), upholding the applicability of the Khyber Pakhtunkhwa Employees Social Security Act (KPESSA), 2021.
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PEN had challenged a notification issued on January 6, 2025, which classified private schools as “establishments” liable to extend social security benefits. The petitioner argued that the KP Private Schools Regulatory Authority Act, 2017, being a special law regulating registration, operations, and fees, should take precedence over KPESSA and that compliance would impose administrative burdens, including maintaining employee records, attendance, salary details, and bank information.
The court rejected this argument, noting that KPESSA is a beneficial legislation aimed at safeguarding employee welfare. The bench clarified that regulations under the KP-PSRA Act govern operational standards and fee structures but have no bearing on social security obligations. It added that charitable or non-profit status of schools does not exempt them from providing benefits to employees.
The judgement relied on precedents under the Employees’ Social Security Ordinance, 1965, and held that the impugned notification had been validly issued under statutory authority. With the dismissal of the petition, the interim stay granted earlier has been lifted, making it mandatory for private schools across KP to enrol their staff under the social security scheme.
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Advocate Ali Gohar Durrani represented the Employees’ Social Security Institution (ESSI), while Barrister Asadul Mulk appeared for the Private Schools Regulatory Authority. The ruling ensures that teachers and staff in private institutions will now be legally entitled to welfare benefits, marking a significant step toward employee protection in the province.