Ghana labour law on redundancy

Jun 26, 20 in view of this, the labour law of ghana could be given a second look on the issue of redundancy to clarify these ambiguities as well 5 as set a premise to be used by trade unions and employers so. All the information and labour laws about redundancy pay entitlement for employees at workplace in ghana redundancy occurs when an undertaking is closed down or there is amalgamation which causes severance of the legal relationship of a worker and employer as it existed immediately before the close down, arrangement or amalgamation. Early retirement means workers may quit now yet still remain eligible for their retirement benefits later. In the event of a redundancy, the employer is further required to consult the trade. Redundancy the law provides that where an employer contemplates that the introduction of major changes in production, programme, organization, structure or technology of an undertaking that are likely to entail terminations of employment of workers in the undertaking, that employer is mandated under act 651 to submit in writing to the chief labour officer, all relevant information including the reasons for any termination, the number and categories of workers likely to be affected and the.

Otherwise its a contract breach on your side and the office may sue you for damages according to article 90 of the labor contract law, although it rarely happens. Redundancy, redundancy and wages and salaries, redundancy and. And there is no law or contract which specified how the quantum of the severance pay was to be calculated in case of redundancy. Redundancy can take place when an employer contemplates the introduction of major. The national labour commission nlc is established under section 5 of the labour act, 2003 act 651. Payment of severance benefits to the redundant staff of. Can i make a complaint when there is a dispute regarding my redundancy pay and the terms and conditions of payment. Still, if you break the law, you can be dismissed instantly.

By this act the following employment incomes are taxexempt. Pay in lieu of notice, severance package, termination pay in ghana. The redundancy pay is subject to negotiation between the employer or representative of the employer on the one hand and the worker or the trade union concerned on the other. National labour commission located in accra, ghana. What you need to know about redundancy law employment. A nofault dismissal by karen ainslie za on june 11, 2014 posted in south africa this article was written by jonathan jones, an associate at norton rose fulbright south africa. Nov 23, 2016 the main legislation governing industrial relations or employment matters is the labour act 2003. National labour commission accra, ghana contact phone. If youre made redundant, the termination clause in your contract will determine what happens next. However, where the contract of employment is for three 3 years or more, it may be terminated upon a months notice or a months pay in lieu of notice. Mar 07, 2019 any dispute concerning redundancy pay and terms and conditions of payment may be referred to the labour commission for redress. The main reasons why thailand employers may consider payroll cuts by terminating staff can be summarised briefly as economic, poor performance or misconduct.

They arealso turning permanent employees into casual or contract workers. Former ilo termination of employment legislation digest ghana. Procedure for terminating contractual employment on. The maximum duration permitted for an oral fixed term contract is 6 months and 2 years for a written fixedterm contract. Most employers claim their human resources are their most valuable asset, and thus formulate policies to ensure the best employees are recruited into. Know more about employee labour laws, labour rights, industrial laws in ghana. It is certain there was no law which entitled the respondents to severance award. All the information and labour laws about redundancy pay entitlement for employees at workplace in ghana. Labour act, 2003 international labour organization. Redundancy may occur when an employer contemplates the introduction of a major change in production, programme, organisation, structure or technology of an undertaking that is likely to entail terminations of employment of workers in the industry. The primary law and regulations that govern employment relationships in ghana are the labour act 2003 act 651 and the labour regulations. Typically an employee is liable to ghana income tax based on income earned in respect of duties performed in the countryterritory. On 26 july 2017, the supreme court ruled that the high court has concurrent jurisdiction with the labour commission in hearing cases of unfair termination of employment. An act to amend and consolidate the laws relating to labour, employers.

However, you must give your employer a notice before resigning. Jul 19, 2015 unfortunately, no redundancy regulations have so far been published by the minister for employment, labour and productivity. There is no common definition for the concept of redundancy in labour law and relations the world over. The employeremployee relationship is regulated under thai law, including matters relating to the termination of an employee. If you become involved in an altercation serious enough to warrant police attention, for example, or if youre found guilty of drunken driving, your employer will probably dismiss you. Jun 11, 2014 employees rights on redundancy in south africa. Ghana redundancy if an employer is anticipating significant changes in production, structure, organisation or technological changes to their establishment that are likely to cause redundancies, they must provide all relevant information relating to the terminations in writing to the chief labour officer and any trade union concerned, no. In ghana, section 65 of the labour act 2003, act 651 expressly provides for the procedures that must be followed when an employer decides to severe relationship with hisher workers. A structured guide to employment and labour law in ghana. All trademarks and s on this page are owned by their respective owners. Where the termination is for businessrelated reasons, such termination may be treated as being a redundancy. National labour commission business profile on ghanayello. Labour laws in ghana for the business starter graphic online.

An act to amend and consolidate the laws relating to labour, employers, trade unions and industrial relations. As per the internal revenue act, 2000 act 592, section 8 as amended by the internal revenue amendment act, 2002 act 622, s. Ghana labour law on termination of appointment and all other ghana labour laws ensure the countrys productive group is working under optimum conditions by keeping both parties in check. Discharge of the relationship by dismissal, termination, redundancy and effect. Employment in liberia is mainly governed by the liberia labour practices law, 1956. Pursuant to section 652 of the labour act, redundancy pay is payable where the employers companyorganization is closed down or undergoes an arrangement or amalgamation and the close down, arrangement or amalgamation causes. The constitution of ghana and the labour laws prohibit discrimination on the basis of race, sex, ethnic origin, creed, colour, religion, social, or economic status. Mr elvis vanlare, volta regional secretary of the trades union congress tuc, has observed that employers in the banking, maritime and mining sectors were taking advantage of lapses in the labour act to lay off workers.

Jun 24, 20 on the other hand, redundancy in ghana is defined by section 651 of the labour act 2003, act 165 as. Accordingly, the court hereby declines to hear this matter and refers the plaintiff to the labour commission. Labour department accra, ghana contact phone, address. Mar 20, 2019 any dispute arising from the amount of redundancy pay and the terms and conditions of the payment may be referred to the labour commission and the decision of the labour commission shall be final. Once dismissed, your employer is required to transfer redundancy payments under the cover of your termination. In these times of economic uncertainty, employers are always considering implementing cost cutting including reducing their payroll costs. The labour act defines the term redundancy as an involuntary and permanent loss of employment caused by an excess of manpower. Attrition implies that positions will be eliminated as workers quit or retire. Employee labour laws industrial labour laws, rights in ghana. On the other hand, redundancy in ghana is defined by section 651 of the labour act 2003, act 165 as. Mar 07, 2019 the primary law and regulations that govern employment relationships in ghana are the labour act 2003 act 651 and the labour regulations. The information has been carefully selected and compiled from unhcrs global network of field. Redundancy law is a fundamental employee right found in the united kingdoms labor law.

The law relating to and regulating redundancy in the country is provided for in the labour act. Redundancy, redundancy and wages and salaries, redundancy. General provisions as to protection of wages, contracts of employment and terms and conditions of employment. I have carefully perused the docket and the court is of the firm view that this is a dispute concerning the plaintiffs redundancy pay. Redundancy is a specific legal term in uk labour law. The respondents admitted signing for severance awards but they claimed they were imposed on them by the appellant. Puwu demand paying redundancy packages for all workers of the electricity company of ghana.

This also means that the high court, just as the labour commission, is able to order the reinstatement of an employee a remedy which previously was said to be unknown to the courts at common law. Kenya labour law on redundancy corporate staffing kenya. Labour inspection, forced labour, workmens compensation. Termination archives the federation of international. All about redundancy, redundancy and wages and salaries, redundancy and labour laws, redundancy and employers on africapay ghana. Employment and labour law in ghana related international articles. Regrettably, that is the case with the redundancy provisions under ghanas labour act the provisions on redundancy in ghanas labour act.

Nov 27, 2016 this act came into force several years after ghana gained independence in 1957. Therefore, the law further makes explicit provision in subsection 5 for the resolution of conflict, stating that any dispute that concerns the redundancy pay and the terms and conditions of payment be referred to the commission by the aggrieved party for settlement, and the decision of the commission shall subject to any other law be final. In the uae, the federal uae labour law n8 of 1980 uae labour law does not make express reference to the concept of redundancy. The management of this university has refused to pay us workers for two months now. Labour legislation of ghana ilo national labour law database. The terms of the employment, rights and obligations of parties, wages, protection of remuneration. However, under the uae labour law, any termination of an employment contract that would take place without a valid reason would be deemed to be of an arbitrary nature. Redundancy may occur when an employer contemplates the introduction of a major change in production, programme, organisation, structure or technology of an undertaking that is likely to entail terminations of.

The information has been carefully selected and compiled from unhcrs global. The laws bring about order and peace in the process, as everything is clearly laid down and measures on how it shall be followed to the latter put into place. Refworld contains a vast collection of reports relating to situations in countries of origin, policy documents and positions, and documents relating to international and national legal frameworks. Understanding severance and redundancy in ghana adrdaily. Before the promulgation of act 651, the industrial relations act 1960 act 299 and few other related labour regulations governed labour relations. Home articles irm understanding severance and redundancy in ghana. An act to repeal and replace the labour code act and consolidate the law relating to labour. The laws governing redundancy and termination of employment. Questionnaires were administered to people known by the researcher who are redundant staff of both public and private sectors in nigeria. He therefore urged the clo to intervene and firmly uphold the law and apply the authority of his office in which first atlantic bank has disregarded the requirements of the law with respect to termination and redundancy, but in itself dependent on the protective cover of the laws of ghana in its business dealings. The sec 65 1 a and b state that when an employer contemplates the introduction of major changes in. An assessment of poverty reducing policies and policies and programmes in ghana, nii kwaku sowa, centre for policy analysis, ghana, 2002.

Oct 24, 2019 in the united arab emirates uae, the federal law number 8 of 1980 is the principal labour law referred to as the uae labour law hereon, and there is no express statutory definition of the term redundancy, and thus, this causes a lot of uncertainty and confusion amongst business owners with regards to the correct legal. Labour act, 2003, act 651 gives an insight on termination of employment and redundancy. One of the elements that are crucial to ensuring a smooth redundancy procedure, is ensuring that it takes place fairly. The laws governing redundancy and termination of employment in ghana. Prior to 2003, the main sources of regulations relating to termination of employment in ghana were the industrial relations act, 299 of 1965, the labour decree of 1967, nlcd 157, as well as the civil service act and the civil service disciplinary code regulations, 1971, which regulated only state employees. Any dispute concerning redundancy pay and terms and conditions of payment may be referred to the labour commission for redress.

Part vi of the labour act ensures protection of working women and part v protects workers with disabilities. There is a provision in the law regarding redundancy pay paid only if an organization closes down or is merged with another organization and this leads to the worker losing his benefits or even job, however this compensation is subject to negotiation between the employer or representative of the employer and the worker or the trade union. Under ghanaian law, a redundancy may arise where a business. Liberian employment law recognises both fixedterm and indefinite duration contracts. Redundancy pay in ghana redundancy pay entitlement at. Termination of employment under act 651, a contract of employment may be terminated by either party at any time.

All efforts made to inform management of our predicament has proved futile. Typically, in the event of a redundancy, a worker is. Refworld is the leading source of information necessary for taking quality decisions on refugee status. Ghana labour law on termination of appointment made simple. Many businesses have been forced to lay off staff or reduce their working hours temporarily during the coronavirus covid19 pandemic this document outlines the difference between lay off and short term working, gives information on social welfare supports and tells you when a redundancy payment can arise. The main legislation governing industrial relations or employment matters is the labour act 2003. The main legislation governing industrial relations or employment matters in ghana is the labour act 2003, act 651.

The kenyan employment act 2007, defines redundancy as the loss of a job or occupation through no fault of an employee, happening mostly where the services of the said employee are no longer needed. Consequently, instigating a redundancy process involves. Agyarbeng and others v sgssb bank ltd j41120152015. This act came into force several years after ghana gained independence in 1957. Ilo decent work pilot programme ghana, programme document, november 2002. Nov 16, 2016 the nigerian labor law acknowledges that an employer reserves the right to pay off any employee whether on the basis of redundancy, idleness etc. Official gazette, the labour act, 2003, ghana, 20031010, pp. When an employer contemplates the introduction of major changes in production, programme, organisation, structure or technology of an undertaking that are likely to entail terminations of employment of workers in the undertaking. Ghana does not adopt the economic employer approach. As an employee and a ghanaian i would like to find out from the labor commission of ghana about the law to protect employees at private organizations such as this. It is allowed and provided for in the ghana labour laws.

Any dispute arising from the amount of redundancy pay and the terms and conditions of the payment may be referred to the labour commission and the decision of the labour commission shall be final. In ghana, section 65 of the labour act 2003, act 651 expressly provides for the procedures that must be followed when an employer decides to. Nov 23, 2017 regrettably, that is the case with the redundancy provisions under ghanas labour act the provisions on redundancy in ghanas labour act, 2003 act 651 labour act do no favours for. The function of the commission includes the settlement of industrial dispute through negotiations and other effective alternative methods of disputes resolution, such as mediation and arbitration. As a result, the general practice is that redundancy severance pay is usually computed using the employees length of service, the last remuneration of the employee, among other things, as a guide. In view of this, the labour law of ghana could be given a second look on the issue of redundancy to clarify these ambiguities as well 5 as set a premise to be used by trade unions and employers so. Who do these cover, including categories of worker. Under section 655 of the labour act, such disputes are to be referred to the labour commission. The nigerian labor law acknowledges that an employer reserves the right to pay off any employee whether on the basis of redundancy, idleness etc. If no, are the taxation authorities in ghana considering the adoption of this interpretation of economic employer in the future. Procedure for terminating contractual employment on grounds.