Probationary Employment Contract (Ghana)

A Probationary Employment Contract in Ghana defines the duties, pay, hours and termination terms governing the relationship between employer and employee. It defines duties, remuneration, working hours, leave, and termination procedures binding employer and employee.

Section 19 of the Labour Act 2003 (Act 651) requires that a written contract of employment state: the name of the employer and the worker; the date on which employment began; the nature of the work; the place of work; the hours of work; the remuneration — including the rate of pay, method of calculation, and intervals at which payment is made; and the terms relating to termination. A Probationary Employment Contract must comply with these minimum requirements in addition to setting out the specific terms applicable during the probation period.

Under Section 62 of the Labour Act 2003 (Act 651), employment may be terminated during the probation period by either party without giving the notice periods that apply to confirmed employees, provided the contract expressly provides for this and the termination is not for a reason that constitutes unlawful termination under Section 63 of Act 651 — for example, termination on grounds of trade union membership, pregnancy, religion, ethnicity, or disability.

The National Labour Commission (NLC), established under Part XIV of the Labour Act 2003 (Act 651), is the statutory body responsible for receiving and mediating labour disputes in Ghana, including disputes arising from the termination of probationary employees. An employee dismissed during probation who believes the termination was unlawful may file a complaint with the NLC.

The Ghana Trades Union Congress (TUC) and the Ghana Employers Association (GEA) are the principal national bodies representing workers and employers in collective bargaining and labour relations in Ghana. Employers operating in sectors covered by collective bargaining agreements registered with the NLC should confirm whether the terms of those agreements apply to probationary employees.

The minimum wage in Ghana is set annually by the National Tripartite Committee (NTC) — comprising representatives of the Government of Ghana, the TUC, and the GEA — and gazetted by the Minister of Employment and Labour Relations under Section 68 of the Labour Act 2003 (Act 651). The daily minimum wage must be paid even during the probation period and cannot be reduced by agreement.

The Social Security and National Insurance Trust (SSNIT), established under the National Pensions Act 2008 (Act 766), administers the mandatory first-tier pension scheme in Ghana. Employers are required by Section 67 of the National Pensions Act 2008 (Act 766) to register new employees — including probationary employees — with SSNIT within 30 days of the commencement of employment and to deduct and remit 5.5% of basic salary as the employee's SSNIT contribution, with the employer contributing 13% of basic salary.

The Ghana Revenue Authority (GRA) administers pay-as-you-earn (PAYE) income tax under the Income Tax Act 2015 (Act 896). Employers are required to deduct PAYE from all employment income paid to employees — including probationary employees — and to remit the deducted tax to the GRA within 15 days after the end of the month in which deductions were made. A Probationary Employment Contract should acknowledge the employer's statutory obligation to deduct PAYE and SSNIT contributions.

A Probationary Employment Contract in Ghana is needed whenever an employer wishes to engage a new employee and assess their performance and suitability before committing to a permanent employment relationship.

A Probationary Employment Contract is required when recruiting a new employee for a position where the employer needs to evaluate the employee's technical skills, client-facing competencies, or leadership abilities before confirming the appointment — particularly for senior or specialised roles in sectors such as banking regulated by the Bank of Ghana (BoG), telecommunications, oil and gas under the Petroleum Commission Act 2011 (Act 821), or professional services.

A Probationary Employment Contract is needed when an employer is subject to a collective bargaining agreement registered with the National Labour Commission (NLC) that permits the use of a probation period, and the employer wishes to document the specific terms that apply during that period consistently with the collective agreement.

A Probationary Employment Contract is required when the employer wishes to make the confirmation of employment conditional on the satisfactory completion of a formal performance review or the attainment of specific targets, rather than on the mere passage of time. Documenting these conditions in writing reduces disputes before the National Labour Commission (NLC) about whether the employer had a legitimate basis for non-confirmation.

A Probationary Employment Contract is needed when an employer registered with the Ghana Investment Promotion Centre (GIPC) under the Ghana Investment Promotion Centre Act 2013 (Act 865) engages a Ghanaian employee to work alongside an expatriate employee — where the terms of the probation period need to be clearly distinguished from the terms applicable to the expatriate's employment permit.

A Probationary Employment Contract is required when an employee is re-engaged following a break in service — for example, following resignation and re-hiring — and the employer wishes to treat the re-engagement as a new employment subject to an assessment period.

A Probationary Employment Contract is needed when a company incorporated under the Companies Act 2019 (Act 992) and registered with the Office of the Registrar of Companies (ORC) is scaling its workforce and needs standardised documentation for new hires to comply with labour audits and Ghana Revenue Authority (GRA) employment records requirements.

A compliant Probationary Employment Contract in Ghana under the Labour Act 2003 (Act 651) must contain the following essential elements.

Parties and Commencement: The full legal names and addresses of the employer (including company registration number from the Office of the Registrar of Companies if the employer is a company under the Companies Act 2019 (Act 992)) and the employee. The contract must state the date on which employment and the probation period commence, as required by Section 19 of Act 651.

Job Title and Duties: A clear description of the employee's position, reporting line, principal duties, and place of work. Where the role requires a professional licence — for example, a medical practitioner registered with the Medical and Dental Council, an accountant registered with the Institute of Chartered Accountants Ghana (ICAG), or a lawyer enrolled with the Ghana Bar Association — the contract should reference the applicable professional qualification.

Duration of Probation: The probation period must be expressly stated. Under Section 62 of the Labour Act 2003 (Act 651), probation periods of up to six months are standard; longer probation periods may be permissible in limited circumstances with justification. The contract must state the date on which the probation period ends and what will occur at the end — confirmation of employment, extension of probation, or termination.

Remuneration: The basic salary or wage rate, payment intervals (monthly in Ghana), and method of payment must be stated in accordance with Section 19 of Act 651. The salary must not be less than the national daily minimum wage gazetted by the National Tripartite Committee (NTC) under Section 68 of Act 651. Any allowances — transport, housing, medical — should be separately itemised.

Working Hours: Standard working hours in Ghana are eight hours per day and forty hours per week under Section 33 of the Labour Act 2003 (Act 651). Overtime arrangements, including the overtime premium rate of at least 150% of the basic hourly rate required by Act 651, should be stated.

SSNIT and PAYE Obligations: The contract should acknowledge that the employer will deduct and remit SSNIT contributions (employee: 5.5% of basic salary; employer: 13% of basic salary) to the Social Security and National Insurance Trust under the National Pensions Act 2008 (Act 766), and PAYE income tax to the Ghana Revenue Authority (GRA) under the Income Tax Act 2015 (Act 896).

Performance Assessment: The criteria against which the employee will be assessed during the probation period — attendance, output, conduct, client feedback — should be stated clearly so the employee understands what is required for confirmation of employment.

Termination During Probation: The notice period required to terminate employment during probation (which may be shorter than the notice applicable to confirmed employees) and the grounds on which the employer may terminate without notice — for example, serious misconduct — should be stated, consistently with Sections 62 and 63 of the Labour Act 2003 (Act 651).

Confidentiality and IP: Where the employee will have access to confidential business information, the contract should include confidentiality obligations consistent with the Contract Act 1960 (Act 25), and intellectual property assignment clauses consistent with the Copyright Act 2005 (Act 690) and the Patents Act 2003 (Act 657).

Governing Law and Dispute Resolution: The contract is governed by the laws of the Republic of Ghana. Disputes should be referred in the first instance to the National Labour Commission (NLC) under Part XIV of the Labour Act 2003 (Act 651), with the right to appeal to the High Court (Labour Division) in Accra.

Forms-legal.com provides this Probationary Employment Contract template as a starting point for employers and employees in Ghana. Employers in regulated sectors — banking, insurance, telecommunications, mining — should confirm with a solicitor enrolled with the Ghana Bar Association that the terms comply with applicable sector-specific regulations and any relevant collective bargaining agreements registered with the NLC.