Knowledge and understanding of labour laws is important for employers in Ghana. Adhering to labour laws is crucial for maintaining a lawful and productive workplace in Ghana.
- 1. Employment Contracts (Labour Act 2003, Act 651)
- 2. Working Hours and Overtime (Labour Act 2003, Act 651)
- 3. Minimum Wage
- 4. Leave Entitlements (Labour Act 2003, Act 651)
- 5. Termination of Employment (Labour Act 2003, Act 651)
- 6. Social Security and National Insurance Trust (SSNIT) Contributions
- 7. Non-Discrimination (Labour Act 2003, Act 651)
- 8. Occupational Health and Safety
Employers must therefore be aware of key legal obligations, from employment contracts to workplace safety, to ensure compliance and avoid penalties. Here are eight vital labor laws every employer should be familiar with to safeguard both their business and employees
1. Employment Contracts (Labour Act 2003, Act 651)
Employers must provide employees with a written contract within two months of employment. This contract must include their job description, hours of work, remuneration, and conditions of service.
2. Working Hours and Overtime (Labour Act 2003, Act 651)
The standard working hours required of an employee are 8 hours a day and 40 hours a week. Any additional work done qualifies for overtime pay which should be set at a higher rate than regular hours.
3. Minimum Wage
The government periodically sets the country’s minimum wage and employers are mandated to comply with it. Any wage below the standard set by the government is illegal.
4. Leave Entitlements (Labour Act 2003, Act 651)
Employees are entitled to annual leave which should be at least 15 working days per year, sick leave, maternity leave which should be at least 12 weeks and public holidays.
5. Termination of Employment (Labour Act 2003, Act 651)
Employers must provide valid grounds for terminating employment. Employees must be given the required notice or compensation in place of it. An unfair termination may lead to legal repercussions.
6. Social Security and National Insurance Trust (SSNIT) Contributions
Employers must contribute to the SSNIT scheme, which provides retirement and other benefits to employees. The contributions are mandatory and must be deducted and paid on time.
7. Non-Discrimination (Labour Act 2003, Act 651)
Employers must ensure that the workplace is fair and inclusive. Employees must not be discriminated against on the basis of gender, race, religion, ethnicity, or nationality.
8. Occupational Health and Safety
It is the duty of employers to provide a safe working environment and take measures to prevent workplace accidents. They must provide protective equipment such as gloves and training on safety procedures in order to achieve this.
Philipa N. A. Sima Nuamah on behalf of OSD & Partners
