The Labour Act, 2003 (Act 651) is the primary legislation governing employment and industrial relations in Ghana. It consolidates previous labor laws to provide a modern framework for the rights and duties of both employers and workers.
1. Core Employment Terms
- Working Hours: Maximum of 8 hours per day or 40 hours per week.
- Overtime: Any work beyond standard hours must be paid at fixed overtime rates, typically 150% of the hourly rate.
- Rest Periods: Workers are entitled to a daily rest of at least 12 consecutive hours and a weekly rest of 48 consecutive hours.
- Leave Entitlement: A minimum of 15 working days of paid annual leave after 12 months of continuous service.
- Maternity Leave: Female employees are entitled to at least 12 weeks of fully paid maternity leave, extendable by 2 weeks for multiple births or complications.
2. Contracts and Termination
- Written Contracts: Mandatory for employment lasting 6 months or more.
- Notice Periods:
- 3+ years of service: 1 month notice or pay in lieu.
- Under 3 years: 2 weeks notice or pay in lieu.
- Weekly contracts: 7 days notice.
- Fair Termination: Permitted for incompetence, proven misconduct, or redundancy.
- Unfair Termination: Dismissal based on gender, race, religion, disability, pregnancy, or trade union membership is illegal.
3. Key Institutions
- National Labour Commission (NLC): Established to resolve industrial disputes through negotiation, mediation, and arbitration. As of January 2026, the NLC remains active in resolving major disputes, such as current summons regarding judicial staff salary arrears.
- National Tripartite Committee: Responsible for determining the national daily minimum wage.
4. Special Protections
- Persons with Disabilities: Employers are encouraged to hire persons with disabilities through special incentives and must provide suitable working conditions.
- Young Persons: Prohibition of hazardous work or underground mining for “young persons” (defined as those under 18).
- Equal Pay: Explicit requirement for equal pay for equal work without discrimination of any kind.
Note: While Act 651 remains the current law, legislative reviews are ongoing as of 2025-2026 to modernize certain provisions. For the full text, you can refer to the official Parliament of Ghana Repository. The Labour Act, 2003 (Act 651) PDF Download

Leave a Reply