Hire 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.

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 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.

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

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.

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.

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.