Employer of Record Guide in 

Ghana

Vacation Leave

All employees are entitled to a minimum of 15 working days of paid annual leave after completing 12 months of continuous service. Key provisions include:

• Accrual: Leave typically accrues monthly (1.25 days per month)
• Carry-over: Unused leave may be carried forward with employer consent
• Payout: Must be paid out upon termination if unused

Sick Leave

Employees are entitled to sick leave, though the Labour Act does not specify duration. Common practices include:

• Medical certificate required for absences exceeding 3 days
• Full pay for short-term illness
• Reduced pay for extended illness (often 50% after initial period)
• Job protection during legitimate medical leave

Maternity Leave

Female employees receive comprehensive maternity protection:

• Duration: 12 weeks of paid leave
• Extension: Additional 2 weeks for complications
• Pay: Full salary during leave period
• Job Protection: Guaranteed return to same or equivalent position
• Nursing Breaks: Additional time for breastfeeding upon return

Parental Leave

Ghana does not provide statutory paternal leave. However, some progressive employers offer:

• 3-5 days of paternity leave
• Adoption leave (company policy)
• Family emergency leave

Bereavement Leave

No statutory bereavement leave exists. Employers typically provide:

• 3-5 days for immediate family members
• 1-2 days for extended family
• Additional unpaid leave if needed

Other Leave Types

• Study Leave: May be granted for job-related education
• Compassionate Leave: For family emergencies
• Civic Duty: Time off for jury service, voting

Summary

Termination Types

Termination With Just Cause:

• Immediate dismissal without notice or compensation
• Requires serious misconduct (theft, fraud, gross insubordination)
• Employer must prove just cause

Termination Without Cause:

• Permitted with proper notice or payment in lieu
• Must not be discriminatory or retaliatory
• Requires adherence to procedural fairness

Redundancy:

• Due to economic reasons or restructuring
• Requires consultation with employees
• May trigger severance obligations

Notice Period Requirements

Notice periods depend on length of service and employment terms:

Note: Employment contracts may specify longer notice periods

Severance Pay

Severance is not mandatory except in redundancy situations. When required:

• Calculated based on length of service
• Typically 1-2 weeks' pay per year of service
• Must include accrued benefits and unused leave

Probationary Periods

• Duration: Typically 3-6 months (no statutory maximum)
• Termination: Shorter notice periods may apply
• Benefits: Full benefits usually apply during probation
• Extension: Possible with mutual agreement

Final Pay Requirements

Employers must provide final payment by the day after termination when proper notice is given. Final pay must include:

• Outstanding salary
• Accrued vacation pay
• Any earned bonuses or commissions
• Expense reimbursements

Legal Protections

Employees are protected against termination based on:

• Pregnancy or maternity leave
• Trade union membership
• Filing complaints or grievances
• Discrimination based on protected characteristics

National Holidays (2025)

Ghana observes 13 statutory holidays annually:

Holiday Pay Rules

• Eligibility: All employees entitled to holiday pay
• Rate: Regular daily wage
• Working on Holidays: Double pay (200% of regular rate)
• Substitute Days: If holiday falls on weekend, following Monday becomes holiday

Regional Variations

Some regions observe additional local festivals, but these are not statutory holidays requiring employer obligations.

Required Documentation

Employment Contracts:

• Mandatory for employment lasting 6+ months
• Must be provided within 2 months of employment start
• Should include job description, salary, benefits, termination clauses

Government Registration:

• Ghana Revenue Authority (GRA): Tax identification number
• SSNIT Registration: Social security enrollment
• Tier 2 Pension: Private pension scheme enrollment

Employee Documents:

• Valid identification (passport, national ID, voter ID)
• Educational certificates
• Previous employment references
• Bank account details for salary payments

Language Requirements

English is Ghana's official language, making it the standard for all employment documentation and workplace communication. No translation requirements exist for standard business operations.

Background Checks & References

Background verification is permitted and commonly practiced:

• Employment History: Previous employer verification
• Educational Credentials: Certificate authentication
• Criminal Background: With employee consent and job relevance
• Credit Checks: Limited to financial positions

All checks must be job-relevant and conducted with written employee consent.

Data Protection & Privacy

Ghana's Data Protection Act, 2012 (Act 843) governs employee data handling:

• Consent Required: For collection and processing of personal data
• Purpose Limitation: Data use must align with stated purposes
• Security Measures: Employers must protect employee information
• Access Rights: Employees can request access to their data

IP Assignment & Confidentiality

Employment contracts should clearly address:

• Intellectual Property: Work-related creations belong to employer
• Confidentiality: Protection of business information
• Non-Compete: Limited enforceability, must be reasonable
• Trade Secrets: Protection of proprietary information

Probation Period Setup

• Duration: 3-6 months is standard practice
• Performance Reviews: Regular evaluation during probation
• Termination: Shorter notice periods may apply
• Benefits: Full benefits typically provided during probation

Onboarding Timeline

What the EOR Handles

Borderless AI manages:

• Employment contract drafting and execution
• GRA and SSNIT registration
• Payroll processing and tax compliance
• Benefits administration
• Local legal compliance
• Employee relations support

Worker Classification: Employee vs. Contractor

Ghana's Labour Act distinguishes between employees and independent contractors based on several factors:

Employees:

• Work under employer control and supervision
• Receive regular salary and benefits
• Use employer-provided tools and equipment
• Work set hours at designated locations
• Entitled to full labour law protections

Independent Contractors:

• Operate with autonomy and independence
• Invoice for services rendered
• Provide their own tools and equipment
• Set their own schedules and work locations
• Limited labour law protections

Temporary Workers:

• Engaged for specific projects or periods
• May work through employment agencies
• Entitled to proportionate benefits
• Subject to maximum engagement periods

Misclassification can result in penalties, back payments, and legal liability

Unionisation & Collective Agreements

Ghana's Constitution guarantees workers' rights to:

• Form and join trade unions
• Engage in collective bargaining
• Strike (with proper procedures)
• Protection from anti-union discrimination

Key Considerations:

• Some sectors have strong union presence (mining, manufacturing, public sector)
• Collective agreements may override individual employment terms
• Employers must recognise and negotiate with certified unions
• Strike action requires proper notice and procedures

Cultural Norms & Workplace Expectations

Ghanaian workplace culture emphasises:

• Respect for Hierarchy: Clear organisational structures
• Relationship Building: Personal connections matter
• Religious Observance: Accommodation for Christian and Islamic practices
• Community Orientation: Team-based decision making
• Punctuality: Increasing emphasis on time management
• Professional Dress: Conservative business attire expected

Anti-Discrimination Laws

Ghana prohibits employment discrimination based on:

• Gender and pregnancy
• Religion and belief
• Ethnic origin and nationality
• Political affiliation
• Disability (with reasonable accommodation)
• Age (in certain circumstances)

Sexual Harassment:

• Explicitly prohibited in all workplaces
• Employers must maintain harassment-free environments
• Complaint procedures required
• Both civil and criminal remedies available

Remote Work Considerations

Ghana lacks specific remote work legislation, so general Labour Act provisions apply:

Employer Responsibilities:

• Ensure safe working conditions (even at home)
• Provide necessary equipment or reimbursement
• Maintain regular communication and supervision
• Respect working time limits and overtime rules
• Protect confidential information and data

Employee Rights:

• Same labour protections as office-based workers
• Right to disconnect outside working hours
• Reimbursement for work-related expenses
• Access to training and development opportunities

Best Practices:

• Written remote work policies
• Clear performance metrics
• Regular check-ins and team meetings
• Cybersecurity protocols
• Equipment and expense policies

Industry-Specific Considerations

Mining Sector:

• Heavily regulated with specific safety requirements
• Strong union presence
• Additional permits and licenses required
• Environmental compliance obligations

Financial Services:

• Bank of Ghana licensing requirements
• Enhanced background checks
• Continuing education requirements
• Strict confidentiality obligations

Technology Sector:

• Growing government support and incentives
• Intellectual property considerations
• Data localisation requirements emerging
• Skills development partnerships available