BONDED LABOUR SYSTEM (ABOLITION) ACT, 1992

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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) It extends to the whole of 
2
[the Punjab].  
(3) It shall come into force at once.  
2. Definitions.– In this Act, unless there is anything repug nant 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 adv ance 
                                                           
1This 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. 
2Substituted 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 consider ation 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, o r 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 tim e 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. 
                                                           
3Inserted 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 in strument, 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, i n pursuance of such attachment, any movable property of the bonded 
labourer was seized and removed fro m 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 atta ched 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 prop erty and such property shall be restored, within ninety da ys 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 ma de 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 givin g 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 sui t 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 s o 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 holde r 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 be en 
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 
this Act .– The 
4
[* * * *] Government may confer such powers and impose such 
duties on a 
5
[District Coordination Officer] as may be necessary to ensure that the 
provisions of this Act are properly carried out and the 
6
[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. 
10. Duty of 
7
[District Coordination Officer] and other officers designated by 
him.– (1) The 
8
[District Coordination Officer]  authorised by the 
9
[* * * *] Government  
under section 9, and the officer designated by the 
10
[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. 
(2) It shall be the duty of e very 
11
[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 implemen t 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 yea rs nor 
more than five years, or with fine which shall not be less than fifty thousand rupees, 
or with both. 
                                                           
4Omitted 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. 
5Substituted 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. 
6Substituted for the words “District Magistrate” by the Punjab Bonded Labour System (Aboli tion) (Amendment) Act 2012 (XXIV 
of 2012), w.e.f. 11.2.2012, s.4; and published in the Punjab Gazette (Extraordinary), pages 40169-40170. 
7Substituted 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. 
8Substituted 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. 
9Omitted 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. 
10Substituted 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. 
11Substituted 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 tha n two years nor more than five years or with fine which shall not be 
less than 
12
[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 
term which may extend to one year, or with fine which may extend to 
13
[five] thousand 
rupees, or with both; and out of the fine, if recovered, payment shall be made to the 
bonded labourer at the rate of 
14
[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 und er 
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 Admi nistration, Bar associations, Press, 
recognized Social Services and 
15
[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 a s may be necessary 
to achieve the objectives of the law. 
                                                           
12Substituted 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. 
13Substituted 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. 
14Substituted 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. 
15Substituted for the words “Labour Departments of the Federal and Provincial Government s” 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 
empowered in this behalf by the 
16
[* * * *] 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 off ence 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 a ny 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 o ther 
legal proceeding shall lie against Government or any of ficer 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. 
21. Power to make rules.– The 
17
[* * * *] Government may , by 
notification in the official Gazette, make rules for carryi ng out the purposes of this 
Act. 
                                                           
16Omitted 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. 
17Omitted 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.