Ghana Labour Laws
A comprehensive guide to employment and labour legislation in Ghana — your rights, employer obligations, and the key statutes that govern the workplace.
The Labour Act, 2003 (Act 651)
Primary Legislation
Overview of Act 651
The principal law governing employment relationships in Ghana
Overview of Act 651
The principal law governing employment relationships in Ghana
The Labour Act, 2003 (Act 651) is the cornerstone of Ghana's employment law framework. It regulates the relationship between workers and employers, establishes minimum standards for working conditions, and provides mechanisms for resolving disputes. It applies to all workers in Ghana except members of the Armed Forces, Police Service, Prison Service, and the Security and Intelligence Agencies.
- Enacted by Parliament of Ghana on 7 November 2003
- Replaces the Labour Decree, 1967 (NLCD 157) and Industrial Relations Act, 1965
- Covers contract of employment, collective agreements, and labour disputes
- Establishes the National Labour Commission (NLC)
- Protects fundamental worker rights including freedom of association
- Sets standards for working hours, leave, and termination of employment
Act 651 has been supplemented by the Labour Regulations, 2007 (LI 1833), which provide detailed operational rules. Both documents must be read together for a complete picture of Ghana's labour law.
Employment Terms & Contracts
Section 10–12
Contract of Employment
Written agreement requirements and probationary periods
Contract of Employment
Written agreement requirements and probationary periods
Under Act 651, every employer must provide a written statement of the terms of employment within two months of the commencement of employment.
- Written contracts are mandatory for all employees
- Must include: names of parties, job description, place of work, date of commencement
- Must state remuneration (rate, method, and intervals of payment)
- Must include terms relating to hours of work, holidays, and leave
- Probationary period shall not exceed 6 months (extendable to 12 months by agreement)
- Employee may be terminated during probation with one week's notice
Fixed-term contracts automatically terminate at expiry. However, where a worker continues to work after expiry without a new contract, the contract shall be deemed to be renewed on the same terms and conditions.
Section 33
Working Hours
Normal hours, overtime, and rest periods
Working Hours
Normal hours, overtime, and rest periods
| Category | Standard |
|---|---|
| Normal working hours | Maximum 8 hours per day / 40 hours per week |
| Rest break (if 6+ hrs/day) | At least 30 minutes |
| Weekly rest period | Minimum 48 consecutive hours |
| Overtime rate | At least 1.5× normal hourly rate |
| Night shift supplement | Additional payment as agreed |
| Public holiday work | Double the basic rate |
Employers who require overtime without compensation commit an offence under Act 651 and may be prosecuted. Workers cannot be compelled to work more than 48 hours per week including overtime.
Wages, Salaries & Deductions
Section 67–74
National Daily Minimum Wage
Statutory minimum wage and payment obligations
National Daily Minimum Wage
Statutory minimum wage and payment obligations
The National Daily Minimum Wage (NDMW) is set annually by the National Tripartite Committee (NTC), comprising the Government, organised labour (TUC and NCWD), and employers (GEA). The current NDMW is GH¢ 25.50 per day.
- All workers are entitled to at least the NDMW
- Wages must be paid in legal tender (Ghana Cedis)
- Payment intervals: daily, weekly, fortnightly, or monthly as agreed
- Wages must be paid on working days, at or before end of shift
- Deductions only permitted for PAYE tax, SSNIT, and agreed authorised purposes
- Deductions must not reduce pay below 50% of earned wages
Any employer who pays below the NDMW commits an offence and is liable on summary conviction to a fine or imprisonment. Workers may report violations to the Labour Department or National Labour Commission.
SSNIT / PAYE
Social Security & Tax Obligations
SSNIT contributions, PAYE deductions, and Tier 2 pensions
Social Security & Tax Obligations
SSNIT contributions, PAYE deductions, and Tier 2 pensions
| Contribution | Employee | Employer |
|---|---|---|
| SSNIT (Tier 1) | 5.5% | 13% |
| Occupational Pension (Tier 2) | — | 5% (of 13%) |
| Total Pension Contribution | 5.5% | 18.5% |
| PAYE (Income Tax) | Per GRA bands | Deduct & remit |
Employers must register all employees with SSNIT within 30 days of engagement. Failure to remit contributions attracts penalties under the National Pensions Act, 2008 (Act 766).
Leave Entitlements
Section 31–32, 57–59
Annual, Sick & Maternity Leave
Statutory leave entitlements under Act 651
Annual, Sick & Maternity Leave
Statutory leave entitlements under Act 651
| Leave Type | Entitlement | Notes |
|---|---|---|
| Annual Leave | Minimum 15 working days per year | After 12 months continuous service |
| Sick Leave | As per medical certificate | Full pay for first 12 days; 50% thereafter |
| Maternity Leave | 12 weeks (3 months) | Full pay; may begin 4 weeks before delivery |
| Nursing Breaks | 1 hour per day | For up to 12 months after delivery |
| Paternity Leave | Not specified in Act 651 | By agreement or collective bargaining |
| Public Holidays | All gazetted public holidays | With full pay; 13 public holidays in Ghana |
Annual leave cannot be waived or replaced by cash payment except upon termination of employment. Leave not taken within 12 months of being due may be forfeited unless the employer prevented the worker from taking it.
Termination of Employment
Section 16–20
Notice Periods & Termination Pay
Minimum notice requirements and severance entitlements
Notice Periods & Termination Pay
Minimum notice requirements and severance entitlements
| Basis of Pay | Minimum Notice Period |
|---|---|
| Daily / Weekly / Fortnightly | 1 week's notice |
| Monthly paid | 1 month's notice |
| Quarterly paid | 3 months' notice |
| Yearly paid | 3 months' notice |
Payment in lieu of notice is permissible. Termination without notice or payment in lieu constitutes wrongful dismissal. Redundancy requires additional consultation and a redundancy pay of at least one month's salary per year of service.
- Employer must give written reasons for termination on request
- Summary dismissal (no notice) permitted only for gross misconduct
- Worker must be heard before dismissal for misconduct (right to a hearing)
- Unfair termination may be challenged at the National Labour Commission
Termination on grounds of pregnancy, gender, race, religion, or trade union membership is automatically unfair and unlawful under Act 651.
Occupational Health & Safety
Section 118–120; PNDCL 328
Employer Duties & Worker Safety Rights
Workplace safety obligations and the Factories, Offices and Shops Act
Employer Duties & Worker Safety Rights
Workplace safety obligations and the Factories, Offices and Shops Act
The Factories, Offices and Shops Act, 1970 (Act 328) and the Labour Act together impose comprehensive safety duties on employers.
- Employer must provide a safe and healthy workplace
- Personal Protective Equipment (PPE) must be provided at no cost to the worker
- Workplace must be properly lit, ventilated, and kept clean
- Dangerous machinery must be guarded and maintained
- Workers must be trained on hazards relevant to their work
- Employers must report workplace accidents and injuries to the Labour Department
- Workers have the right to refuse unsafe work without penalty
- Health and safety committees required in workplaces with 25+ workers
The Labour Inspectorate of the Department of Labour is empowered to inspect workplaces, issue improvement notices, and prosecute non-compliant employers.
Equality, Dignity & Anti-Discrimination
Worker Rights
Protected Characteristics & Equal Pay
Prohibition of discrimination in the workplace
Protected Characteristics & Equal Pay
Prohibition of discrimination in the workplace
Section 14 and 63 of Act 651, together with the 1992 Constitution of Ghana, prohibit discrimination in employment on the following grounds:
Equal pay for equal work; no differential terms based on sex.
No discrimination in hiring, promotion, or conditions of service.
Reasonable accommodation for religious practice must be considered.
Persons with disability are protected under the Disability Act, 2006 (Act 715).
Dismissal due to pregnancy is automatically unfair and illegal.
No adverse treatment for political beliefs or party membership.
Sexual harassment at work is prohibited under Act 651. Employers have a duty to prevent and address harassment. Victims may file complaints with the NLC or the courts.
Trade Unions & Collective Bargaining
Section 79–99
Freedom of Association & Collective Agreements
Workers' right to organise and bargain collectively
Freedom of Association & Collective Agreements
Workers' right to organise and bargain collectively
- Every worker has the right to form or join a trade union of their choice
- Employers must not interfere with workers' right to organise
- Collective Bargaining Agreements (CBAs) are legally binding on both parties
- CBAs must be registered with the Chief Labour Officer to be enforceable
- Sole bargaining agents must represent at least 35% of workers in the unit
- Employers must bargain in good faith with recognised unions
- The right to strike is protected — after exhausting conciliation procedures
- Essential services workers have restricted strike rights
- Lock-outs (employer work stoppages) are equally regulated
Ghana has two umbrella union bodies: the Trades Union Congress (TUC) and the Ghana Federation of Labour (GFL). Both are recognised negotiating partners under the National Tripartite Committee.
Child Labour & Young Persons
Section 57–59 & Children's Act 560
Minimum Age & Prohibited Work
Child labour prohibitions and protections for young workers
Minimum Age & Prohibited Work
Child labour prohibitions and protections for young workers
| Age Group | Rule |
|---|---|
| Under 15 years | No employment in any form whatsoever |
| 15 – 17 years | Light work only; not hazardous, harmful, or likely to harm health or development |
| Under 18 years | Prohibited from night work (10 pm – 6 am) and underground/mining work |
| 18+ years | Full employment rights under Act 651 |
The Children's Act, 1998 (Act 560) further prohibits all forms of child trafficking and the worst forms of child labour as defined by ILO Convention 182, which Ghana has ratified.
Engaging a child in prohibited labour is a criminal offence. Report child labour violations to the Department of Children (Ministry of Gender, Children and Social Protection) or call the Child Helpline: 116.
Dispute Resolution
Section 135–178
National Labour Commission (NLC)
The independent body for resolving labour disputes in Ghana
National Labour Commission (NLC)
The independent body for resolving labour disputes in Ghana
The National Labour Commission (NLC) was established under Act 651 to resolve labour disputes through mediation, conciliation, and arbitration. Its decisions are enforceable as court orders.
- Either party may refer an unresolved dispute to the NLC in writing
- NLC first attempts mediation — a neutral mediator facilitates agreement
- If mediation fails, dispute goes to arbitration (binding decision)
- NLC decisions may be appealed to the High Court
- No filing fees for workers pursuing individual grievances
- NLC can issue interim orders to prevent irreparable harm
- Collective disputes (affecting multiple workers) may also be referred to NLC
NLC Contact: Accra — (030) 277 3854 / nlc@ghana.gov.gh | Regional offices in Kumasi, Tamale, Takoradi, and Ho. Workers may also report violations to the nearest Department of Labour office.