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Written Agreements

The Labour Act in Ghana requires written contracts of employment for people employed for a period of 6 months or more or a number of working days equivalent to 6 months or more within a year. A contract of employment is to express in clear terms the rights and obligations of the parties involved. Employers must, within 2 months after the commencement of employment, provide the employee with a written statement of the main terms of the employment contract, including names of parties, date of the first appointment, job title, pay (including overtime rates), hours of work, holidays, sickness and work-related injury entitlements, social security or pension scheme enrollment, termination notice periods, disciplinary rules, and grievance procedures.

Oral Agreements

Employment contracts can be express or implied. The Contracts Act states that no contract is void or unenforceable by reason only that it is not in writing or that there is no memorandum or note thereof in writing.

Under the Labour Act, a written agreement for employment relationships shorter than 6 months is not required. They can be made orally. However, within 2 months of commencing employment, the employer must provide the employee with a written statement of the main terms of the employment contract unless they are employing a casual worker.

Implied Agreements

In Ghana, employment contracts can be express or implied. The Contracts Act states that no contract is void or unenforceable by reason only that it is not in writing or that there is no memorandum or note thereof in writing. This means that contracts are valid by action of the parties.

Under the Labour Act, a written agreement for employment relationships shorter than 6 months is not required. However, within 2 months of commencing employment, the employer must provide the employee with a written statement of the main terms of the employment contract unless they are employing a casual worker.

The labor law dictates that the standard working time is 8 hours per day or 40 hours per week. However, an organization may prescribe the hours of work differently, subject to the following:

• Where shorter work hours are fixed for particular days, other days may compensate proportionately, but not exceeding 9 hours a day or 40 hours a week.
• Where longer work hours are fixed for particular days, the average number of work hours over 4 weeks must not exceed 8 hours a day or 40 hours per week.
• A seasonal employee may work 10 hours daily, provided that average working hours during the year do not exceed 8.

In Ghana, workers are entitled to paid public holidays. The following holidays are observed:

• New Year's Day - January 1
• Constitution Day - January 7
• Independence Day - March 6
• Good Friday - date subject to change annually
• Easter Monday - date subject to change annually
• May Day (Workers' Day) - May 1
• Eid-Ul-Fitr - date subject to change annually
• Eid-Ul-Adha - date subject to change annually
• Founders' Day - August 4
• Kwame Nkrumah Memorial Day - September 21
• Farmer's Day - first Friday in December
• Christmas Day - December 25
• Boxing Day - December 26

In Ghana, the Labour Act does not contain explicit provisions or guidance regarding the maximum duration of probationary periods but references a “reasonable” period to be determined in advance. Probationary periods and conditions of probation may be provided for in collective agreements. However, when a probationary period is contractually required as a condition for employment, the contract must specify the duration of the probation for the employee.

Employees dismissed during their probation are not entitled to any severance or redundancy payment. They can be dismissed without notice.

Notice Period

In Ghana, an employment contract may be terminated for several reasons listed in the Ghanaian Labor Act. The notice length depends on the type of contract:

• In the case of a contract of 3 years or more - 1 month’s notice or 1 month’s pay in lieu of notice
• In the case of a contract of under 3 years - 2 weeks’ notice or 2 weeks’ pay in lieu of notice
• In the case of an agreement from week to week - 7 days’ notice
• At the close of any day without notice, for at-will employment contracts

Notices must be in writing and stipulate the date of issue. In collective agreements with terms more beneficial to the employee, the collective agreement prevails. The length of notice of termination required to be given in the case of a person with a disability must not be shorter than 1 month.

Severance Benefits

An employee has the right to receive severance pay from an employer only when the employer closes down or undergoes a merger and this causes the worker to become unemployed or suffer a diminution in the terms and conditions of employment. The amount of redundancy pay, as well as the terms and conditions of payment, are negotiated between employer and employee or relevant trade union.

In addition to possible redundancy pay, workers are also entitled to the following payments on termination of employment, made within the duration of the notice period, or the next working day in case of no notice:

• Any remuneration earned by the worker before contract termination
• Any deferred payment due to the worker before contract termination
• Any compensation due to the worker with regards to sickness or accident
• Repatriation expenses in the event of contract termination for foreign contracts

Minimum Wage

Effective March 1, 2025, Ghana's national daily minimum wage is GHS 19.97 (Ghanaian cedis), a 10 % increase over the 2024 national daily minimum wage of GHS 18.15.

Monthly minimum wage figures are calculated as daily minimum wage times 27 days. The daily minimum wage is set for all workers (except the Armed Forces, the Prison Service, the Security and Intelligence Agencies, and the Police Service) by the National Tripartite Committee led by the Minister for Employment & Social Welfare. This rate applies to all of Ghana, apart from free trade zones, where employers may freely negotiate and establish employment contracts, including wage levels, that are consistent with ILO conventions.

There are no statutory requirements for payroll frequency in Ghana. It can be determined by the employers and employees in their contracts or through collective agreements. Casual and temporary employees can be paid daily.

Overtime, Holiday & Vacation Pay

The labor law defines overtime as any work time in excess of the regular working hours, averaging at 8 hours per day and 40 hours per week over a reference period of 4 weeks. Overtime work for no additional payment is allowed in certain exceptional circumstances, including severe accidents threatening human lives or the undertaking itself. The law does not fix the rate of overtime remuneration, stipulating that employees may not be required to perform overtime work unless:

• The enterprise has fixed rates of pay for overtime work.
• The undertaking’s very nature requires overtime to be economically viable or is subject to emergencies that require overtime work to avoid a threat to life or property.

All employees are entitled to be paid on public holidays. Temporary and casual employees working on public holidays are entitled to 200% of the regular rate of wages for the hours or days worked.

Employees are also entitled to be paid regular wages during their annual leave. Every employee has the right to enjoy an uninterrupted annual leave. The exception is made in cases of urgent necessity, when employers may require employees to interrupt their leave and return to work. In such a case, employees must be compensated for any reasonable expense incurred because of the interruption.

Visas

Apart from ECOWAS (Economic Community of West African States) nationals and other nations with which the Government of Ghana has specific agreements for gratis visas, all foreign applicants are required to have a visa upon entry into Ghana.

The different types of visas offered are:

• Tourist (visitor) visa
• Business visa
• Student visa
• Employment visa
• Official visa
• Diplomatic visa
• Volunteer visa
• Press accreditation
• Transit visa

Work Permits

Foreign nationals wishing to work in Ghana must have a work permit. Applications are submitted via the Ghana Immigration Service.

A work permit issued to foreign nationals must specify the employer and the period they may occupy a particular post. The holder may not, without the consent in writing of the authorities, engage in any other form of paid employment or any business or professional occupation in Ghana.

A foreign national granted a work permit or immigrant quota cannot start working in Ghana immediately unless the Director of Immigration grants them a residence permit to remain and work in the country. Residence permits may be issued for up to 4 years, with an option for a subsequent extension for another 4 years.