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Hire in Ghana

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Last updated at May 03, 2023
Cape Coast Castle Ghana

Currency of Ghana

Ghanaian Cedi (GHS)

The Capital of Ghana

Accra

Time Zone in Ghana

GMT

Important Facts About the Country of Ghana

Introduction to Ghana

Ghana, officially known as the Republic of Ghana, is a country situated in West Africa. It is the second-most populous country in West Africa, after Nigeria, with a population of approximately 32 million people. The capital and largest city of Ghana is Accra. Ghana is a multicultural country with a diverse range of languages and religious groups. Ghana boasts a thriving and varied economy that, coupled with its plentiful natural resources, contributes to one of the highest GDP per capita rates in West Africa.

What to Know about Ghana's Geography

Covering an area of 238,535 square kilometers, Ghana comprises various biomes, ranging from coastal savannas to tropical rainforests. It shares borders with Ivory Coast to the west, Burkina Faso to the north, Togo to the east and the Gulf of Guinea and the Atlantic Ocean to the south.

Climate in Ghana

The climate of Ghana is tropical and greatly influenced by the West African monsoon winds. It is usually mild, with seasonal and elevation-dependent temperature variations. Typically, the northern part of the country experiences a single rainy season from May to September.

The Culture of Ghana

Ghana has a diverse culture, as it is home to people of many ethnicities. The country has a rich history of storytelling, which is frequently accompanied by music and dancing. Ghana is renowned for its vibrantly colored and intricately patterned textiles.

Religions Observed in Ghana

With more than 70% of its population being members of various Christian denominations, Christianity is the most widely practiced religion in Ghana. Islam is practiced by approximately 20% of the country’s population.

Languages Spoken in Ghana

English is Ghana’s official language, with Ga, Dagomba, Akan and Ewe being the most commonly spoken local languages.

Ghana’s Human Resources at a Glance

Employment Law Protections in Ghana

Employment relationships in Ghana are primarily governed by the Labour Act 2003 and the Labour Regulations 2007. Other vital legal sources include:

  • Constitution of Ghana
  • National Pension Act
  • National Health Insurance Regulation

Employment Contracts in Ghana

While a written employment contract is not always necessary, it is required if the employment continues for a period of six months or more. The following terms must be established in writing:

  • the names of the employer and the employee
  • the appointment date
  • the job title and grade
  • the rate, method and intervals of pay
  • the work hours
  • the period and details of holiday pay
  • conditions relating to sickness or injury and the details of sick pay
  • information regarding social security or a pension scheme
  • termination
  • the disciplinary rules applicable
  • the dispute resolution procedure
  • information regarding overtime payment

Ghana's Fixed Term Contract Terms

Fixed-term contracts are generally allowed in Ghana. The country’s Labor Act does not prohibit employing candidates for certain durations, nor does it specify a maximum duration for fixed-term contracts.

Pre-Employment Checks

Employers can perform pre-employment background checks, which include identity, residential, employment history, education/professional licenses, professional qualifications and personal references.

Ghana's Guidelines Regarding Probation Period/Trial Period

The Labor Act does not set a maximum length of probation but the probation period can be determined in the collective bargaining agreement. This period must be reasonable and predetermined.

Regulations and Rules Regading Working Hours in Ghana

According to the Labor Act, the maximum standard working hours per day are eight hours or 40 hours per week. While the law allows adaptations for different types of work, the average number of hours for each worker over a period of four weeks or one year must still be eight hours per day or 40 hours per week. Any additional hours worked beyond this may be considered as overtime and should be paid at an overtime rate.

Employees are entitled to a rest period of 30 minutes if their normal hours of work are continuous. If the normal hours are split into two parts, the break should not be less than one hour and will not be included in normal working hours. Furthermore, if an employee works normal hours for seven consecutive days, he or she must take a consecutive 48-hour rest period.

Ghana's Laws Regarding Overtime

The law in Ghana does not specify the rates for overtime pay. Instead, they are usually established in the employment contract or collective agreement. Typically, overtime hours are paid at 150% of the normal hourly wage.

Employees cannot be asked to work extra hours unless the company has established overtime pay rates. Additionally, employees cannot waive their right to receive overtime pay, even if they agree to work longer hours.

Termination

Termination and dismissal have different meanings in Ghana. Termination is not related to any disciplinary actions, while dismissal is.

For an employer to dismiss an employee, they must have a just cause. This means that the reason for the dismissal must be reasonable and in compliance with the Labor Act or a fair procedure. The Act outlines specific situations in which an employee’s dismissal will be considered fair, such as incompetence, lack of qualification for the job or misconduct.

In contrast, an employment contract can be terminated without cause. Employers have the legal right to terminate an employee’s contract at any time and for any reason, provided they give appropriate notice or pay the employee’s wages in lieu of notice as per the employment contract. The employer is not required to provide a reason or justification for the termination.

According to the Labor Act, unfair termination can occur if an employee is terminated for reasons such as refusal or insistence to join a union, gender, race, ethnicity, color, origin, creed, social status, economic status, political affiliation, pregnancy, disability or temporary illness.

Ghana's Requirements Regarding Notice Periods

Written notice of termination must be given to employees, with notice periods varying based on the length of the employment contract:

  • Contracts of three years or more: one month’s notice (or one month’s pay in lieu of notice)
  • Contracts of less than three years: two weeks’ notice (or two weeks’ pay in lieu of notice)
  • Weekly contracts: seven days’ notice

Redundancy/Severance Pay in Ghana

The Labor Act in Ghana allows for compensation upon termination of employment. However, this does not apply to dismissals. If an employee is made redundant, they are entitled to redundancy pay in addition to any existing benefits. This entitlement does not apply to temporary, probationary or temporary workers.

The amount of redundancy pay, along with its terms and conditions, are subject to negotiation between the employer, the employee and the employee’s union representative.

If an employment contract is terminated for reasons other than redundancy, the employee is entitled to receive payment for:

  • any remuneration earned before the termination
  • any deferred payment due before the termination
  • any compensation due for sickness or accident
  • expenses related to journey and repatriation of the employee and their family (for foreign contracts)
  • any leave entitlements

However, employees who are terminated by dismissal are not eligible for employer grants and benefits.

Post-Termination Restraints/Restrictive Covenants

In general, agreements that prevent a former employee from competing, soliciting clients or carrying on business with clients are considered invalid and unenforceable. However, such agreements can be enforceable if they serve a valid employer interest, are fair and are in the public interest.

The law does not establish a specific time frame for these agreements. Instead, each case is evaluated by the court on an individual basis to determine what length of time is appropriate and acceptable for the agreement to be in effect.

Data Protection

Under the Data Protection Act of 2012, employees have the right to privacy and their personal data must be respected by employers. Accessing or disclosing such data requires the employer to first obtain consent from the employee.

Tax and Social Security Information for Employers in Ghana

Personal Income Tax in Ghana

In Ghana, individuals who are residents are taxed on their income earned worldwide. Employers have the responsibility of deducting the monthly Pay As You Earn (PAYE) at the source. The rates for the monthly PAYE deduction are based on the following:

 

Monthly Chargeable Income (GHC) Tax Rate (%)
First 402 0
Next 110 5
Next 130 10
Next 3,000 17.5
Next 16,395 25
Next 29,963
 30
Exceeding 50,000 35

Non-resident individuals are generally taxed at a flat rate of 25%.

Social Security in Ghana

The Social Security and National Insurance Trust (SSNIT) is responsible for managing Ghana’s Social Security and National Insurance system.

Both employees and employers are required to make contributions to SSNIT. Employees contribute 5.5% of their basic salary, while employers contribute 13%.

Additionally, there is a voluntary provident fund scheme in Ghana. This allows both employers and employees to contribute up to 16.5% of the employee’s basic salary.

*The above rates serve as a broad guideline. Actual rates charged will differ.

Important Information for Ghanaian Employees

Salary Payment

According to the Labor Act, employers are obligated to pay their employees’ wages on time and in legal tender. Monthly payments must be made to employees who work on a monthly basis, while weekly payments are made to employees who work on a weekly basis. The Act also allows for in-kind wage payment.

Payslip

There is no statutory requirement for employers to provide employees in Ghana with payslips. However, this practice is recommended.

Annual Leave

Employees are entitled to 15 working days of paid annual leave for each year of continuous service or for at least 200 days of service in a year. The right to paid annual leave cannot be waived, whether by contract or any other means.

Entitlement to annual leave is not affected by public holidays, sick leave, pregnancy, confinement, or authorized absence for communal work or civil duties.

If an employee falls sick (with a medical certificate) during their annual leave, the period of sickness will not count towards their annual leave entitlement.

Sick Leave

Under the Labor Act, employees have the right to take time off work for medical reasons confirmed by a doctor. However, the Act doesn’t set out whether an employee is entitled to sick pay or the maximum duration of sick leave they can take.

Pregnant women who become ill due to their pregnancy or confinement are entitled to paid sick leave.

Employers typically have their own policies that outline the payment and length of sick leave an employee can take as part of their benefits package.

Maternity & Paternity Leave

Female employees are entitled to a minimum of 12 weeks of maternity leave. To qualify, a pregnant employee must provide a medical certificate issued by a medical practitioner or midwife indicating the expected date of confinement. During the maternity leave period, the female employee is entitled to receive her full remuneration and other benefits.

Public Holidays

Ghana celebrates 13 public holidays.

Benefits to the Employee in Ghana

Ghanaian Statutory Benefits

Employees in Ghana are entitled to social security insurance, annual leave, sick leave and maternity leave as prescribed by law.

Other Benefits

In addition to statutory benefits, it is common for employers to offer bonuses, private health insurance, life insurance, allowances and additional leave such as paternity leave.

 

Rules Regarding Visas and Foreign Workers in Ghana

General Information

Visas

While some African nationals can enter Ghana visa-free for up to 90 days, most international citizens require a visa to visit the country.

Depending on nationality and availability, many types of visas are available, such as embassy visas, visa on arrival and eVisa. In addition, a valid passport or travel document is required. Single-entry visas are valid for 90 days after issuance and should be applied for no more than 30 days before departure.

Work Permits

Foreign nationals may be authorized to work in Ghana through one of the following channels:

  • a short-term or long-term work and residency permit
  • the Ghana Investment Promotion Centre’s automatic immigration quota (GIPC)

In both cases, the employing entity must apply for and sponsor work authorization for foreign employees. The sponsoring entity must be registered in Ghana.

When applying for work authorization, there are constraints on the types of positions a foreign individual may hold. The position must be highly specialized and require expertise no Ghanaian resident possesses. To determine the gaps and the specific position the foreign expert is required to fill, resident labor market tests are required. However, these tests are not required for GIPC automatic quota applications, as the entity receives a set number of automatic quotas based on its investment in Ghana.

The GIPC automatic immigrant quota is an indefinite work permit slot allocated to companies registered with the GIPC. The number of quotas available to a company is determined by the amount of foreign equity or capital invested in the company’s operations in Ghana. Once a company is granted permission to use its quota to hire a foreign national, the GIPC requests that a residence permit be given in the employee’s name.

Public Holidays Recognized by Ghana in 2023

  Occasion Date
1. New Year’s Day 01.Jan.2023
2. New Year Holiday 02.Jan.2023
3. Constitution Day 07.Jan.2023
4. Independence Day 06.Mar.2023
5. Good Friday 07.Apr.2023
6. Easter Monday 10.Apr.2023
7. Eid al-Fitr 21.Apr.2023
8. May Day 01.May.2023
9. Eid al-Adha 28.Jun.2023
10. Founders’ Day 04.Aug.2023
11. Kwame Nkrumah Memorial Day 21.Sep.2023
12. Farmers’ Day 02.Dec.2023
13. Christmas Day 25.Dec.2023
14. Boxing Day 26.Dec.2023

 

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