There are two main types of work permits available in Ghana; the temporary work permit and the long-term/ standard work permit. The temporary work permit category is valid for a period of six months and has no option for renewal, whereas the long term/standard work permit is usually valid for a period of one year and may be renewed subject to satisfying the conditions for renewal. The Ministry of Interior oversees admission of foreign workers. Foreign nationals wishing to work in Ghana may obtain a work permit upon application to the Ministry of Interior through Ghana Immigration Service. The Labour Act, 2003 (Act 651) regulates employment and labour issues in Ghana. The legislation consolidates all laws relating to labour, employers, trade unions and industrial relations. The minimum age of employment in Ghana is 18 years but a person below the age of 21 years may not be employed into hazardous work. An employment contract (containing main terms and conditions of employment) should be provided to a worker within two months of the commencement of employment and must be signed by both parties and dated. Every employment contract made in Ghana for the duration of more than six (6) months must be evidenced in writing and it must stipulate the whole of the cash and non-cash remuneration to be made to the worker. A contract of employment that contains provisions to the contrary is void. Contracts of employment for casual workers do not have to be provided in writing, but casual workers have the right to minimum wage for each working day, overtime and medical facilities. In January 2016, the national daily minimum wage was increased to GHS8.00 payable in cash which, depending on exchange rate fluctuations, hovers around USD 1.76 2 as at March 2017. Temporary workers are entitled to certain conditions of service provided under the Labour Act with respect to minimum wage, hours of work, rest periods, paid public holidays, night work and sick leave, irrespective of whatever terms are agreed by the parties. A temporary worker employed by the same employer for a continuous period of six months or more shall be treated as a permanent worker.
The Constitution safeguards the right of all persons to freedom of association, which includes the freedom to form or join trade unions for the protection of workers’ interests. The right to engage in commercial or industrial strike is recognised by law but strictly regulated. The Labour Act also sets out procedures for the resolution of industrial disputes including arbitration. It encourages parties to negotiate in good faith to reach a settlement using their own procedures agreed upon in Collective Bargaining Agreements or contracts of employment. If the parties cannot settle within seven days, either or both parties may refer the dispute to the National Labour Commission (the Commission), whose primary function is to facilitate the settlement of industrial disputes. Ghana’s labour laws protect the worker against unfair termination and unfair redundancy practices. To terminate an employment contract, the worker must be given sufficient notice and the reason for the termination must be fair.Where the employer seeks to lay off workers, redundancy procedures provided under the law must be followed. An employee who claims that his employment has been unfairly terminated may present a complaint to the Commission and if the worker’s employment is found to have been unfairly terminated, the employer may be ordered to: • re-instate the employee as of the date of the termination; • re-employ the worker in the same or a similar position; or • pay compensation to the employee. A number of factors are considered in the determination of the amount of compensation, including the employee’s salary immediately prior to termination, and a reasonable period within which the employee is expected to find alternative employment. The Commission may also consider the average amount of severance pay awarded by companies to its terminated employees. The Pensions Act 2008 (Act 766) requires every employer to pay on behalf of each employee, an amount equal to 13% of the worker’s salary as contribution towards the employees’ pension and deduct 5.5% from the salary of every employee at the end of each month.
2 USD 1 = GHS 4.52
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