Employment law in Ghana
Employment law in Ghana is governed primarily by the Labour Act, 2003 (Act 651), which provides the legal framework for employer-employee relationships, workers' rights, and the regulation of labor practices. The law aims to protect both employees and employers, ensuring fair treatment and addressing various aspects of employment, from contracts to dispute resolution.
Here’s an overview of key aspects of employment law in Ghana:
1. Employment Contracts
Written Contracts: While employment contracts can be oral, it is best practice to have a written contract. This helps define the terms of employment, including duties, salary, working hours, and conditions for termination.
Types of Contracts:
Fixed-term contracts: These are typically used for specific projects or temporary work.
Indefinite-term contracts: This is the default type of employment contract in Ghana.
The written contract should include important details, such as work schedule, remuneration, and any other terms mutually agreed upon by both parties.
2. Working Hours and Rest Periods
Standard Working Hours: The standard workweek is 40 hours, typically distributed over 5 days (Monday to Friday), with 8 hours per day.
Overtime: Employees who work beyond the standard working hours are entitled to overtime pay. Overtime compensation is generally at a rate of 1.5 times the regular hourly wage.
Rest Periods: Employees are entitled to at least 1 hour of rest for every 8-hour workday and must also have a weekly rest day (usually Sunday).
3. Minimum Wage
Ghana has a national minimum wage that employers are legally required to pay their employees. The minimum wage is reviewed periodically and updated by the government.
As of 2025, the national minimum wage is set at GHS 14.88 per day (approximately USD 1.25 per day), but this can be subject to change depending on the government’s economic policies.
4. Leave Entitlements
Annual Leave: Employees are entitled to at least 15 working days of paid annual leave after completing one year of continuous service.
Sick Leave: Employees are entitled to sick leave. Sick leave is typically paid for a period of up to 10 days annually, depending on the employer's policies. If extended sick leave is needed, employees may be required to provide a medical certificate.
Maternity Leave: Female employees are entitled to 12 weeks of paid maternity leave, with at least 6 weeks to be taken after childbirth. This is subject to the condition that the employee has worked with the employer for a minimum of 12 months before the leave.
Paternity Leave: There is currently no statutory provision for paternity leave under Ghanaian law, but some employers may provide this benefit at their discretion.
5. Social Security and Benefits
Social Security: Employees are required to contribute to the Social Security and National Insurance Trust (SSNIT) for retirement benefits, and employers are also required to make contributions on behalf of their employees. The contribution rate is typically 13.5% of an employee’s monthly salary, of which the employee contributes 5.5% and the employer contributes 8%.
Other Benefits: In addition to social security contributions, employers may offer additional benefits, such as health insurance, housing allowances, or transport allowances, depending on company policy.
6. Termination of Employment
Termination by the Employer: Employers can terminate employees for valid reasons such as poor performance, misconduct, or redundancy. However, the termination must follow proper procedure to avoid wrongful dismissal claims.
Notice Period: Employees are entitled to a notice period when they are being terminated. The length of notice varies depending on the duration of employment:
1 week for employees who have worked for less than 1 year.
2 weeks for employees who have worked for 1 to 3 years.
1 month for employees who have worked for more than 3 years.
Severance Pay: Employees who are terminated without cause or laid off due to redundancy are entitled to severance pay. Severance is generally calculated based on length of service and salary.
Termination by the Employee: Employees may also terminate their contract by providing the required notice period. Failure to give proper notice could result in the employee losing the right to severance pay.
Dismissal for Misconduct: Employers can dismiss employees for misconduct (e.g., theft, violence, insubordination) but must follow due process, including an investigation and the opportunity for the employee to present their case.
7. Discrimination and Equal Treatment
Non-Discrimination: Discrimination in employment on the basis of gender, age, race, religion, or disability is prohibited under the Labour Act.
Employers are required to ensure that hiring practices and working conditions are non-discriminatory and provide equal opportunities to all employees.
The law mandates that employers make reasonable accommodations for workers with disabilities.
8. Trade Unions and Collective Bargaining
Trade Unions: Employees have the right to join trade unions and participate in union activities. Trade unions can represent employees in negotiations regarding wages, working conditions, and benefits.
Collective Bargaining: Workers, through their unions, are entitled to engage in collective bargaining with employers to negotiate terms of employment, including salaries, benefits, and working conditions.
Strike Action: Employees are allowed to go on strike in the event of a dispute, but they must follow specific legal procedures, including attempting to resolve the issue through conciliation or arbitration before proceeding to strike.
9. Health and Safety
Workplace Safety: Employers are legally required to provide a safe and healthy working environment. This includes ensuring that the workplace is free from hazards, providing protective equipment, and taking steps to prevent accidents.
Workplace Injuries: Employees who suffer from workplace injuries are entitled to compensation through the Workmen's Compensation Scheme, which is administered by SSNIT. Employees can receive medical treatment and compensation for lost income in the case of work-related injuries.
10. Foreign Workers
Foreign workers can be employed in Ghana but must comply with immigration and work permit regulations. Employers must ensure that foreign employees have the necessary documentation, such as work visas and permits, to work in the country legally.
Foreign workers are entitled to the same rights and protections under the Labour Act as local workers, including wages, benefits, and protection against discrimination.
11. Labor Disputes and Legal Recourse
Labor Disputes: Employees and employers can resolve disputes through various mechanisms, such as conciliation, mediation, and arbitration. Disputes may be referred to the Industrial Court if they cannot be resolved through these methods.
Complaints: Workers can file complaints with the Labour Commission or Labor Inspectorate if they believe their rights have been violated, such as unpaid wages, unlawful termination, or discrimination.
12. Child Labor
The Labour Act prohibits the employment of children under the age of 13 years in any form of work, with the exception of light work that does not interfere with their education.
The employment of young people (ages 13–15) is restricted to certain types of light work and must not interfere with their schooling or health.
Summary of Key Worker Rights in Ghana:
Employment Contracts: Written contracts are encouraged, with clear terms on salary, job duties, and working conditions.
Working Hours: 40-hour workweek, with overtime compensation.
Leave: Annual leave (15 days), sick leave, maternity leave (12 weeks).
Minimum Wage: Set by the government, periodically reviewed.
Termination: Notice periods and severance pay required for unjust dismissal.
Social Security: Employees contribute to SSNIT for pensions and other benefits.
Discrimination: Prohibited on various grounds, including gender and disability.
Trade Unions: Workers have the right to join unions and engage in collective bargaining.
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