Ghana PEO & Employer of Record

WeHG provides an International PEO and global Employer of Record service in Ghana to companies willing to enter the Ghanaian market or hire local/expat employees in this country.

Traditional approach requires establishing a subsidiary in Ghana.  Meanwhile, our solution provides you with the beginning of the operations in Ghana in several days, therefore, save your resources.  WeHG would hire candidates on your behalf when you maintain all-embracing operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf.

Ghana fast facts

Population, million: 31
Land area: 239,567 km²
Capital: Accra
Local currency: Ghanaian cedi (GHS)

GDP per capita:$ 2,266
GDP in currency:$ 69.757 billion

Ghana, country of western Africa, situated on the coast of the Gulf of Guinea. Although relatively small in area and population, Ghana is one of the leading countries of Africa, partly because of its considerable natural wealth and partly because it was the first black African country south of the Sahara to achieve independence from colonial rule.

Hiring, Negotiating and Doing Business in Ghana

Necessity of written employment contract

Contracts of employment may be in writing or may be verbal. An understanding between the parties resulting in quid pro quo (something for something) as in Pay for Labour service will normally constitute a binding employment contract whether in writing or not. It is the parties’ intentions that determine the contract.

Different forms of engagement: employment, contracting, work with private entrepreneur

Employment contracts regulate interactions between employees and employers in an employment relationship. Our Labour laws (LL) require that within 2 months of employment every permanent employee should be given a contract stating the particulars of conditions and terms of the contract. Contracts are negotiable and so when an employee is made an employment offer, they can negotiate the contract offer.

In Ghana, no foreigner shall employ or accept employment unless that person is granted a work permit or immigrant quota. Work permit or Immigrant quota is an authorization granted to an employer or employee to engage in lawful and gainful employment in Ghana. The work permit or immigrant quota specifies the job title. It indicates the employer by whom that person is employed, and the holder cannot engage in any other employment, business, profession or occupation in Ghana for reward than what is specified by the work permit or Immigrant quota.

Ghana Employment Contract

Types of employment agreements

Three basic types of contracts exist: permanent employment ( Continuous until 60 yrs) Casual Employment (seasonal and intermittent work for not more than six months) and temporary employment (project based with fixed duration).

Ghana working hours

The normal working hours are 8 hours a day and 40 hours a week. Worker may work for longer hours, provided that the average working hours do not exceed the normal working hours, i.e., eight hours per day and forty hours per week. Where shorter hours of work are fixed on some days of the week, the hours of work on other days of the week may be proportionately longer than eight hours but shall not exceed nine hours per day and forty hours per week.

Overtime

A worker cannot be compelled to do overtime work. However, under certain circumstances, if the viability of the undertaking or enterprise requires overtime then a worker may be compelled to do overtime. Also a worker may be required to engage in overtime work in order to prevent or avoid threat to life and property. 

A worker may be required to work beyond the fixed hours of work without additional pay in certain exceptional circumstances, including an accident threatening human lives or the very existence of the undertaking.

Vacation leave in Ghana

A worker is entitled to at least 15 working days fully paid annual leave, after completion of 12 months of continuous service. Continuity of service is not interrupted by mere change of ownership or management of the undertaking. The worker must have worked for at least 200 days in the particular year to fulfill the requirement for continuous service, in case of irregular work throughout the year. If a worker is absent from work with permission of employer, this period is not considered as interruption.

Ghana Maternity Leave

Female workers are entitled to 12 weeks (84 days) of maternity leave with full pay. Pregnant worker has to provide medical certificate issued by a medical practitioner or mid- wife, indicating the expected date of her confinement.

The maternity leave can be extended by two additional weeks in case of caesarean delivery/abnormal birth or twin (or more) births. Extended leave are granted in case of illness due to pregnancy or confinement, certified by the medical practitioner. Maximum limit of extended leave is not mentioned in the law.

Ghana Severance Laws

Under Act 651, a contract of employment may be terminated by either party at any time. However, where the contract of employment is for three (3) years or more, it may be terminated upon a month’s notice or a month’s pay in lieu of notice. Where the contract of employment is less than three years, two weeks’ notice or two weeks’ pay in lieu of notice is required. In the case of contract from week to week, seven days’ notice is required to be given to the employee. In the event that the contract of employment is determinable at will by either party, it may be terminated at the close of any day without notice.

Under the law however, termination maybe deemed to be unfair where the termination is only by reason of the fact that the worker intends to join a trade union or has ceased to join a trade union; that the worker has participated in proceedings against the employer: of race, colour, religion; or in the case of a pregnant woman as a result of the pregnancy or absence of work on maternity leave; that the worker has a disability; that the worker has refused to perform duties normally required of him as a result of a lawful strike among others .Additionally, a worker’s termination would be deemed unfair where it is as a result of ill-treatment of the worker by the employer or where the employer has failed to take action on repeated complaints of sexual harassment of the worker at the workplace.

Ghana Tax

The First Tier is the Basic National Social Security Scheme for all workers in Ghana. It is a defined benefit scheme and mandatory for workers to have 13.5% contributions made on their behalf. The contribution is managed by SSNIT.

Corporate Tax: This is the tax paid by companies on their profits in the year. The tax rate is 25%. Mining and upstream petroleum companies pay corporate tax at a rate of 35%, while companies principally engaged in the hotel industry pay a reduced rate of 22%. The CIT rate for companies engaged in non-traditional export is 8%, while bank lending to the agricultural and leasing sectors pay a CIT rate of 20% on income from those business.

Health Insurance Benefits in Ghana

There is no mention in the labour act about the medical care however medical benefits are provided under the National Health Insurance Program.  It provides range of healthcare services free of charge, including inpatient and outpatient services, emergency care, eye treatment, and dental and maternity care. The program does not cover costs for rehabilitation (other than physiotherapy), prostheses, certain surgeries (including organ transplants and cosmetic surgeries), antiretroviral treatment for HIV, dialysis, and cancer treatment (other than cervical or breast cancer).

There is no provision in the above act that a worker’s job is secure during the first 6 months of his/her illness. According to the Labour Act, an employer can’t dismiss a worker during his/her period of sickness (only if it is temporary and for short period), pregnancy or disability.

Additional Benefits in Ghana

State benefits are granted by the government of Ghana to all employed, self-employed and unemployed persons and their dependents residing in the country.

Private benefits are granted by employers to employees, over and above state and compulsory benefits.

A new contributory three-tier pension scheme, under the National Pensions Act 2008, was implemented in 2010.

State and compulsory benefits encompass a set of benefits such as old-age pension, death and long-term disability pensions, short-term sickness benefits, redundancy benefits, occupational accidents and diseases, maternity benefits, benefits in the case of medical emergencies, fair treatment and compensation.

General market practice benefits/additional allowances

Ghana has attracted the attention of international businesses investing in all sectors of the economy. The main sectors of investment within Ghana include agricultural and agro-processing sectors. The financial services and telecommunications sectors are growing rapidly. Further opportunities exist in manufacturing, ICT, tourism, gold, diamonds, and oil and gas.

It is not mandatory to make payments to employees or the authorities from an in-country bank account.

Generally, banks are open to the public from 8.30AM to 4.00PM Monday to Friday. Some banks are open on a Saturday from 8:00AM to 1:00PM.

Ghana Holidays

There’re 13 public holidays in Ghana:

• New Year’s Day
• Constitution Day
• Independence Day
• Good Friday
• Easter Monday
• May Day (Workers’ Day)
• Eid-Ul-Fitr
• Eid-Ul-Adha
• Founders’ Day
• Kwame Nkrumah Memorial Day
• Farmer’s Day
• Christmas Day
• Boxing Day

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.