Ghana
Capital: Accra
Currency: Ghanaian Cedi- 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
- Must include the following:
- 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
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Personal Income Tax:
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Salary Range (GHS) Tax Rate 0 - 4,380 0% 4,380 - 5,700 5% 5,700 - 7,260 10% 7,260 - 43,260 17.5% 43,260 - 240,000 25% 240,000.01 and above 30%
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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
- National Labour Commission of Ghana: https://www.nlc.gov.gh/