Ghana

Ghana

Capital: Accra
Currency: Ghanaian Cedi- GHS
GHS

Ghana Labour Law and Employment Policy Overview

Employment Law Overview

  • Key Legislation:
    • Labour Act (Act 651 of 2003)
    • Social Security Act (Act 247 of 1991)
    • Workmen's Compensation Act (Act 187 of 1987)
  • Legal Characteristics:
    • Aims to protect employees' rights and welfare
    • Stipulates minimum wage, working hours, leave, termination, and severance pay

Employment Contract Requirements

  • Contract Types:
    • Fixed-term contracts (not exceeding 3 years)
    • Indefinite contracts
  • Contractual Terms:
    • Must include the following:
      • Names of employer and employee
      • Commencement date
      • Job title
      • Working hours
      • Wages
      • Annual leave
      • Social security
      • Overtime pay
      • Sick leave
      • Dispute resolution
  • Language and Currency:
    • Contracts must be written in English and use the Ghanaian Cedi currency

Working Hours Regulations

  • Standard Working Hours: 40 hours per week, 8 hours per day
  • Rest Days and Breaks:
    • 12 hours of rest within every 24-hour period
    • 48 hours of rest per week

Leave Policy

  • Annual Leave: 15 days of paid annual leave per year
  • Public Holidays: 15 statutory public holidays
  • Special Leave:
    • Maternity leave: 12 weeks of paid maternity leave (extended to 14 weeks for multiple births or complications)
    • Sick leave: Not provided by law, but may be offered by employers
    • Paternity leave: Not provided by law

Employee Termination and Contract Termination

  • Notice Period:
    • Contracts of 3 years or more: 1 month's notice
    • Contracts of less than 3 years: 2 weeks' notice
    • Week-to-week contracts: 7 days' notice
    • Contracts terminable at any time by either party: Ends on the day, no notice required
  • Severance Pay:
    • Termination without economic reasons: No severance pay
    • Redundancy: Severance pay amount to be negotiated between employer and employee
  • Unfair Dismissal Protection:
    • Employees can file unfair dismissal claims with the Labour Court
    • Court may order reinstatement or award compensation

Taxation

  • Personal Income Tax:

    • Salary Range (GHS)Tax Rate
      0 - 4,3800%
      4,380 - 5,7005%
      5,700 - 7,26010%
      7,260 - 43,26017.5%
      43,260 - 240,00025%
      240,000.01 and above30%
  • Social Security Contributions:

    • Employer: 13%
    • Employee: 5.5%

Health Insurance

  • Insurance Policy:
    • Ghana has a nationalized healthcare system, with all citizens entitled to healthcare
    • Employers may provide private health insurance for their employees

Compensation and Benefits

  • Minimum Wage: GHS 14.88 per day
  • Compensation Structure:
    • Wages
    • Bonuses
    • Allowances

Work Permits and Visas

  • Permit Requirement:
    • Foreigners require a work permit to work in Ghana
  • Application Process:
    • Employer applies to the Immigration Service on behalf of the employee
    • Application requires submission of:
      • Employment contract
      • Proof of qualifications
      • Passport copy

Confidentiality and Non-Compete Clauses

  • Enforceability:
    • Confidentiality and non-compete clauses are enforceable in Ghana
  • Common Provisions:
    • Confidentiality clauses: Prohibit employees from disclosing confidential information
    • Non-compete clauses: Restrict employees from working for competitors for a specified period

Training and Development

  • Legal Requirements:
    • Employers must provide safety training and skills development training to employees
  • Government Support:
    • Government provides funding and incentives to support corporate training

Workplace Diversity and Inclusion

  • Legal Requirements:
    • Discrimination based on race, gender, religion, or disability is prohibited
  • Enforcement Measures:
    • Employers must develop and implement diversity and inclusion policies
    • Government agencies investigate and resolve discrimination complaints

Remote Work Policy

  • Legal Framework:
    • No specific legal framework governing remote work
  • Tax and Insurance Implications:
    • Remote work may impact employees' tax and social security obligations

Authoritative Website Addresses

1.Ghana Labour Law and Employment Policy Overview
1.1Employment Law Overview
1.2Employment Contract Requirements
1.3Working Hours Regulations
1.4Leave Policy
1.5Employee Termination and Contract Termination
1.6Taxation
1.7Health Insurance
1.8Compensation and Benefits
1.9Work Permits and Visas
1.10Confidentiality and Non-Compete Clauses
1.11Training and Development
1.12Workplace Diversity and Inclusion
1.13Remote Work Policy
1.14Authoritative Website Addresses