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THE LABOUR NEWS

Legal Resource Centre

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.

Updated April 2025 Labour Act, 2003 (Act 651) Republic of Ghana
Jump to: Labour Act 651 Employment Terms Wages & Pay Leave Entitlements Termination Health & Safety Equality Trade Unions Child Labour Dispute Resolution

The Labour Act, 2003 (Act 651)

Primary Legislation

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

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

CategoryStandard
Normal working hoursMaximum 8 hours per day / 40 hours per week
Rest break (if 6+ hrs/day)At least 30 minutes
Weekly rest periodMinimum 48 consecutive hours
Overtime rateAt least 1.5× normal hourly rate
Night shift supplementAdditional payment as agreed
Public holiday workDouble 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

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

ContributionEmployeeEmployer
SSNIT (Tier 1)5.5%13%
Occupational Pension (Tier 2)—5% (of 13%)
Total Pension Contribution5.5%18.5%
PAYE (Income Tax)Per GRA bandsDeduct & 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

Leave TypeEntitlementNotes
Annual LeaveMinimum 15 working days per yearAfter 12 months continuous service
Sick LeaveAs per medical certificateFull pay for first 12 days; 50% thereafter
Maternity Leave12 weeks (3 months)Full pay; may begin 4 weeks before delivery
Nursing Breaks1 hour per dayFor up to 12 months after delivery
Paternity LeaveNot specified in Act 651By agreement or collective bargaining
Public HolidaysAll gazetted public holidaysWith 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

Basis of PayMinimum Notice Period
Daily / Weekly / Fortnightly1 week's notice
Monthly paid1 month's notice
Quarterly paid3 months' notice
Yearly paid3 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

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

Section 14 and 63 of Act 651, together with the 1992 Constitution of Ghana, prohibit discrimination in employment on the following grounds:

🚺
Gender

Equal pay for equal work; no differential terms based on sex.

✊
Race & Ethnicity

No discrimination in hiring, promotion, or conditions of service.

🕌
Religion

Reasonable accommodation for religious practice must be considered.

♿
Disability

Persons with disability are protected under the Disability Act, 2006 (Act 715).

🤰
Pregnancy

Dismissal due to pregnancy is automatically unfair and illegal.

🏛️
Political Affiliation

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

  • 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

Age GroupRule
Under 15 yearsNo employment in any form whatsoever
15 – 17 yearsLight work only; not hazardous, harmful, or likely to harm health or development
Under 18 yearsProhibited from night work (10 pm – 6 am) and underground/mining work
18+ yearsFull 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

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.