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Bitrix24 Redundancy pay · Labour Act 2003 (Act 651)
Redundancy pay Ghana — what to ask for when your job ends, under the Labour Act 651
Short answer. The Labour Act does not fix the amount of redundancy pay: it is negotiated. Notice (s. 17): one month's notice or a month's pay in lieu for a contract of three years or more; two weeks for less than three years; seven days week to week; in writing (Labour Act 2003, s. 17).
- Earned pay is due not later than the next working day after termination (s. 18) — checktype the date
- Send the letter asking for the breakdown — about 2 weeks beforetype the date
Check your own case.
The first date is from section 18 of the Labour Act 2003; the second is a reminder, not a legal deadline.
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Redundancy pay · Labour Act 2003 (Act 651)
Your final settlement — notice pay, leave, unpaid pay and the redundancy pay you negotiate
Put in your monthly pay, your first and last day, your leave and the weeks of pay per year of service on the table. You see each part under the Labour Act 2003 (Act 651), a worksheet with different offers, and a letter asking for the final settlement. No sign-up.
- Try different weeks per year: the Excel «Negotiation» sheet shows what each offer means in cedis.
- Send the letter asking for a written breakdown and a meeting with your union representative.
- If you cannot agree, a dispute about redundancy pay may be referred to the National Labour Commission (s. 65(5)).
From the Labour Act, 2003 (Act 651): notice or pay in lieu (s. 17), pay earned paid not later than the next working day (s. 18), leave in proportion to service in the calendar year (s. 30), redundancy pay negotiated between the employer and the worker or union (s. 65(4)). The Act sets no formula for redundancy pay: the weeks per year are your input. Not for fixed-term, probation or casual workers (s. 66). Not legal advice.
Lida, Layers template assistant
Tell me your pay, your dates and the offer on the table, and I will show each part of your final settlement.
The letter asking for the breakdown is ready below.
Deadlines
The rules, with the source
| What | Deadline | Source |
|---|---|---|
| Notice (s. 17) | One month's notice or a month's pay in lieu for a contract of three years or more; two weeks for less than three years; seven days week to week; in writing | Labour Act 2003, s. 17 |
| Pay on termination (s. 18) | Remuneration earned, deferred pay and compensation for sickness or accident, paid not later than the next working day after termination | Labour Act 2003, s. 18 |
| Leave (ss. 20, 30) | At least 15 working days a year with full pay; when employment ends, leave in proportion to service in the calendar year | Labour Act 2003, ss. 20, 30 |
| Redundancy (s. 65) | Employer informs the Chief Labour Officer and the union at least three months before; the amount and terms of redundancy pay are negotiated; disputes go to the National Labour Commission | Labour Act 2003, s. 65 |
Section 66: the redundancy part does not apply to fixed-term or specified-work contracts, probation, or casual workers. A collective agreement with better terms prevails (s. 19). The weeks of pay per year of service are what you, your union and your employer agree.
Step by step
What to do, in order
1
Gather your papers
Appointment letter, payslips, leave record and the redundancy notice.
2
See each part
Notice pay, leave earned this year, unpaid pay and the redundancy pay at different offers.
3
Ask in writing
Send the letter asking for the final settlement and a meeting to agree the redundancy pay.
Questions
How is redundancy pay calculated in Ghana?
Section 65(4) of the Labour Act 2003 says the amount and terms of redundancy pay are negotiated between the employer and the worker or union. The calculator multiplies the weeks of pay per year you agree by your years of service, and adds notice pay, leave earned and unpaid pay.
How much notice must my employer give?
Section 17: one month's notice or a month's pay in lieu for a contract of three years or more, two weeks for less than three years, and seven days for a week-to-week contract. Notice must be in writing.
Do I get paid for leave I did not take?
Section 30: when employment ends, you are entitled to annual leave in proportion to your service in the calendar year. The calculator pays the days earned minus days taken at your daily rate.
What if we cannot agree on the redundancy pay?
Section 65(5): a dispute about redundancy pay may be referred to the National Labour Commission, whose decision is final subject to other law.
Is redundancy pay taxable?
Ask GRA or your payroll: this calculator shows amounts before any tax.
Is it free? Do I need to sign up?
It is free and you do not need to sign up. With a free account you can save a copy to your Layers.
Official sources
Other documents
Keep the papers in one place
Letters, receipts and notices in one folder you can share with family or a lawyer. The templates and the editor are free; Layers is free for up to 20 people.
A worksheet, not legal advice. Your contract, collective agreement and the National Labour Commission decide disputes.