Navigating employment regulations in Ghana can be complex, especially for SMEs and foreign companies entering the market. Understanding Ghanaian labour laws is essential to ensure compliance, avoid legal issues, and foster a positive work environment. This guide provides a practical overview of key employment laws and best practices for employers.
1. Employment Contracts
All employees in Ghana should have a written employment contract, clearly outlining:
- Job title and responsibilities
- Salary, benefits, and payment frequency
- Working hours and leave entitlements
- Termination notice periods
Having a proper contract protects both employer and employee and provides clarity in case of disputes.
2. Working Hours and Leave
- Standard Workweek: The typical workweek is 40-44 hours.
- Overtime: Employees are entitled to overtime pay for work beyond standard hours.
- Leave Entitlements:
- Annual leave: minimum 15 working days per year
- Sick leave: up to 12 working days per year
- Maternity/paternity leave: as prescribed under law
Employers must track hours and leave accurately to stay compliant.
3. Termination and Severance
Termination must comply with Ghanaian labour laws:
- Notice Periods: Depending on the employee’s length of service, notice can range from 1–3 months.
- Severance Pay: Employees may be entitled to severance based on tenure.
- Unfair Dismissal: Employers must have valid reasons and follow due process to avoid claims.
4. Social Security and Statutory Contributions
Employers must contribute to statutory schemes including:
- Social Security and National Insurance Trust (SSNIT)
- Provident funds or pension schemes (if applicable)
- National Health Insurance contributions
Failure to comply can result in penalties and legal issues.
5. Workplace Safety and Compliance
Employers are responsible for ensuring a safe working environment:
- Comply with Occupational Health and Safety regulations
- Provide safety training and equipment
- Establish procedures for reporting accidents or incidents
6. Hiring Foreign Employees
Foreign nationals require valid work permits. Employers must ensure:
- Compliance with immigration laws
- Proper documentation and visa sponsorship
- Understanding of additional tax and reporting requirements
Conclusion
Understanding Ghanaian labour laws is critical for building a compliant and productive workforce. At Kaliber Partners, we help SMEs and foreign companies navigate employment regulations, manage payroll, and implement HR best practices.
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