10 Essential Legal Considerations Every Employer in Ghana Must Know

As an employer in Ghana, understanding the legal framework governing the workplace is essential to maintaining a fair and productive environment. The Labour Act, 2003 (Act 651), outlines key rights and obligations for both employers and employees, ensuring a balanced and transparent relationship.

Here are 10 important legal considerations that every employer should be aware of to avoid disputes and foster compliance with employment laws.

1. Employer’s Duty of Safety:

An employer is required to take all reasonably practicable steps to ensure that the worker is free from risk of personal injury or damage to their health during and in the course of the worker’s employment while lawfully on the employer’s premises.

2.      Contract of Employment:

A written employment contract is required when the employment relationship is for a period of six months or more. The contract must include specific details such as the employee’s salary, benefits, and termination procedures. The employer is obligated to provide the employee with the written contract within two months of the employment commencement date.

3.      Employee’s Right to Join or Form a Trade Union:

Workers have the right to join or form trade unions to protect their interests. Employers cannot compel employees to join a union, participate in union activities, or refrain from doing so. Therefore, terminating a worker’s employment solely because they are a union member, intend to join a union, or participate in union activities is unlawful.

However, by agreement between the employer and the workers or trade unions, certain classes of workers, such as those holding managerial positions, performing duties of a highly confidential nature, or performing decision-making and policy-making roles may be excluded from joining or forming trade unions.

4.      Notice of Termination of Employment:

An employment contract may be terminated by either the employer or the employer at any time by giving notice. Where the contract is for three or more years, one month’s prior notice must be given, or the employer can pay one month’s salary instead. For contracts less than three years, two weeks’ notice or two weeks’ pay is required. If the contract is on a weekly basis, the employer must give seven days’ notice before terminating the contract.

5.      Leave Entitlement:

Every worker has the right to at least fifteen working days of paid leave each year. Any agreement that attempts to give up this right is void. However, in urgent situations, an employer may require a worker to interrupt their leave and return to work, but the worker will still be entitled to take the remaining leave later.

6.      Maximum Hours of Work:

A worker’s hours of work are typically limited to eight hours per day or forty hours per week. Any work beyond these maximum hours is considered as overtime and must be compensated at a fixed rate. Overtime work is generally optional, except when it is essential for the job’s operation or in emergency situations to protect life and property.

7.       Employment of young persons:

An employer is prohibited from employing a young person for any work unless a medical practitioner has confirmed that the person is in good health and fit for the work. In this context, a young person is someone above 18 but below 21 years of age.

8.      Unfair Termination:

Termination of an employment contract is deemed unfair if the worker terminates the relationship due to mistreatment by the employer, or if the employer fails to address repeated complaints of sexual harassment in the workplace.

9.      Unlawful Deductions:

An employer is not permitted to impose financial penalties on a worker for any reason. Furthermore, no deductions can be made from a worker’s pay unless the worker agrees and it is for a number of reasons including the payment of provident fund, pension and other deductions permitted by law.

10. Interference by Worker That Causes Financial Loss

It is an unfair labour practice for a worker to carry on any activity that is intended to cause serious disruption to the business of their employer that may result in financial loss. The employer is entitled to submit a complaint to the National Labour Commission for an enquiry into and determination of the alleged practice and make appropriate orders.