Under Ghana's Labour Act, 2003 (Act 651), every worker is entitled to a written contract of employment. The employer bears the responsibility for providing it. Yet many Ghanaian businesses — from small shops to large companies — still operate without proper employment contracts, creating significant legal exposure.
The Legal Requirement
Section 12 of Act 651 states that an employer must give a worker, within two months of starting work, a written statement of particulars covering the key terms of employment. This is the minimum — a full written contract is strongly recommended.
What Must Be Included
The Labour Act requires these particulars:
- Name and address of employer
- Name and address of worker
- Job title or description of work
- Date of commencement
- The form of employment (whether fixed-term, indefinite, casual)
- Remuneration (salary, benefits, allowances)
- Hours of work
- Paid holiday entitlement
- Notice period for termination
- Any collective agreement that applies
Types of Employment Under Ghana Law
- Indefinite contract: The standard — no fixed end date. Termination requires notice.
- Fixed-term contract: Has an end date. Expires automatically — no termination notice required for expiry. But the employer cannot terminate early without cause.
- Casual employment: Irregular work, paid daily. Fewer protections but still subject to the Act.
- Part-time: Entitled to the same pro-rata rights as full-time workers.
Minimum Wage
Ghana sets a national daily minimum wage each year through the National Tripartite Committee. As of 2025, the daily minimum wage is GHS 19.97. Any employment contract that pays below this is unlawful — regardless of what both parties agreed.
Working Hours
The standard working week under Act 651 is 40 hours. Overtime must be paid — the rate is at least 1.5× the normal hourly rate for weekdays, and 2× for Sundays and public holidays.
Annual Leave
Every worker is entitled to a minimum of 15 working days paid annual leave per year. This cannot be waived — even if the worker "agrees" to no leave.
Maternity Leave
Female workers are entitled to 12 weeks paid maternity leave. The employer pays full salary during this period. A worker on maternity leave cannot be dismissed.
Termination: Notice Requirements
- Less than 3 years' service: 1 month notice (or 1 month's pay in lieu)
- 3–5 years' service: 2 months notice
- 5+ years' service: 3 months notice
Summary dismissal (no notice) is only permitted for serious misconduct — theft, gross insubordination, fraud, sexual harassment, etc.
Illegal Clauses
Clauses that attempt to exclude or reduce rights under Act 651 are void — they cannot be enforced even if the employee signed the contract. These include clauses saying the employee has no right to severance pay, or that the employee agrees to work more than 40 hours at normal pay.
Use our free Business Structure Finder to register properly. Read about wrongful dismissal and SSNIT obligations for employers.