Workplace Harmony 101: What Employers And Employees Must Know Under Ghana's Labour Act

The other day, my cousin's employees (all four of them) decided not to show up for work. Apparently, a small misunderstanding had escalated into a full-blown pay-rise campaign. After several attempts to convince my cousin to increase their salaries failed, they took matters into their own hands and staged what I can only describe as a micro-demonstration, by simply staying home.

Now, my cousin runs a hairdressing salon, and because I'm a very regular customer there, I have a good relationship with her staff. So naturally, I was nominated as the mediator. During our little "salon summit," something became clear: neither employer nor employees knew their rights or responsibilities under the law. And honestly, this is more common than you'd think, one of the major reasons so many disputes end up at the Labour Commission or in court.

So, in this article, we're going to walk through the basic rights and responsibilities of employers and employees under Ghana's Labour Act, because peaceful workplaces don't just happen; they're built on understanding, communication, and a sprinkle of legal knowledge.

Employer Rights: Yes, Employers Have Rights Too!

Many people assume the Labour Act is all about protecting employees, but employers aren't left out. Every business owner from hairdressers to high-rise CEOs, have rights under the law.

1. The Right to hire and the right to not hire

Employers have the freedom to choose who they bring into their business. Skills, attitude, punctuality, all fair game. A salon is no place for someone who faints at the smell of conditioner.

2. The Right to Set Reasonable Rules

From "No lateness" to "No TikTok dances during working hours" , employers can set rules to ensure productivity and order. The key word here is reasonable. No "Employees must bring jollof to work every Monday."

3. The Right to Discipline

Employers can take disciplinary action when needed. Warnings, suspensions, and in serious cases, termination. Of course, it must follow due process. You can't fire someone just because they ate the last meat pie.

4. The Right to Protect Their Business Interests

This includes confidentiality, safety, protecting it from law suits and maintaining a healthy working environment. An employer's business is their livelihood, protecting it is part of the deal.

The Employer Responsibilities and Obligations

Much like everything in the world, rights come with responsibilities. It is the employers responsibility to:

1. Provide Safe Working Conditions

Whether it's a salon, an advisory firm or a construction site, the workplace must be physically safe. No exposed wires, no broken chairs, no fire hazards. When and if the floor is wet, signage needs to be place as notice. If someone gets hurt at the workplace due to negligence, that's an employer headache.

2. Pay Employees Promptly and Fairly

The Labour Act insists on timely payment of wages. No employer has the right to withhold an employee's salary. Salary should not be a "surprise gift", it's an obligation.

3. Respect the Terms of the Contract

If the contract says 8 hours, you can't suddenly demand 12, unless you're giving overtime. A contract is a contract, not a suggestion.

4. Provide Rest Periods and Leave

Yes, annual leave, maternity leave, sick leave, they all apply. Employees are human, not robots powered by words and vibes.

5. Ensure Social Security Contributions are paid.

Employers must pay SSNIT. No debates, no negotiations, no "Let's discuss next month." It is a criminal offense to not pay SSNIT, with a penalty of a fine, or imprisonment for up to 5 years, or both.

Common Misunderstandings: Where Drama Usually Begins

Here's where things get spicy. Many disputes stem from simple misunderstandings:

1. "But I thought salary includes overtime?"

No, please. Salary is salary; overtime is overtime, they are completely different.

2. "If I don't come to work, they can't deduct my pay."

They can, and they will. No work, no pay is very legal.

3. "My boss can terminate me without explanation."

Not so fast. Termination must be based on lawful grounds and follow due process.

4. "My employees must agree to any rule I make."

Employment is not a dictatorship. Rules must be lawful and reasonable.

5. "Verbal contracts don't count."

They do. They really do. But written contracts save everyone's sanity.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.