Secondment Agreement (Ghana)

A Secondment Agreement in Ghana records the obligations the parties accept and the terms governing their arrangement.

Section 12 of the Labour Act 2003 (Act 651) requires every contract of employment in Ghana to specify the nature of work, the place of work, the remuneration, and the terms and conditions of employment. A Secondment Agreement in Ghana must be consistent with the employee's original contract of employment with the home employer and must not diminish the employee's statutory employment rights under Act 651 during the secondment period.

The Social Security and National Insurance Trust (SSNIT) administers the mandatory pension scheme for workers in Ghana under the National Pensions Act 2008 (Act 766). During a secondment, the home employer typically remains responsible for making SSNIT contributions at the rate of 18.5% of the employee's basic salary — comprising 13% employer contribution and 5.5% employee contribution — unless the Secondment Agreement expressly provides otherwise and the host reimburses the home employer for these costs.

The Ghana Revenue Authority (GRA) administers income tax on employment income under the Income Tax Act 2015 (Act 896). The home employer typically continues to withhold and remit PAYE income tax on behalf of the seconded employee. Where the host organisation bears the cost of the employee's remuneration and pays it directly, the host becomes the withholding agent and must comply with Act 896. The GRA's Employee Income Tax Filing requirements apply to all employers in Ghana.

The Immigration Act 2000 (Act 573) and the Ghana Immigration Service regulate the right of non-Ghanaian employees to work in Ghana. A secondment arrangement involving a foreign national requires a valid work permit issued by the Ghana Immigration Service. The Ghana Investment Promotion Centre (GIPC) Act 2013 (Act 865) applies where the secondment involves a company with foreign equity. Intra-company secondments from a foreign parent company to a Ghanaian subsidiary are common under Act 865.

The Data Protection Act 2012 (Act 843) requires that the personal data of the seconded employee — including employment records, salary information, and performance data — be handled lawfully by both the home employer and the host organisation. The Data Protection Commission (DPC) enforces Act 843. The home employer must confirm that sharing the employee's personal data with the host organisation is covered by a lawful basis and appropriate data sharing agreement.

The Workmen's Compensation Act 1987 (PNDCL 187) requires employers to compensate workers who suffer injuries in the course of their employment. During a secondment, the agreement should specify which party — the home employer or the host organisation — is responsible for workers' compensation claims arising from injuries sustained by the seconded employee at the host's premises.

A Secondment Agreement in Ghana is needed whenever an employer temporarily assigns one of its employees to work for another organisation, whether within the same corporate group or with an external third party, for a period typically ranging from a few months to two years.

A Secondment Agreement is required for intra-group secondments — where a Ghanaian parent company, subsidiary, or affiliate within the same corporate group under the Companies Act 2019 (Act 992) temporarily assigns an employee to another entity in the group. The agreement records the terms of the transfer, the cost-sharing arrangements, and the employee's guaranteed right of return.

A Secondment Agreement is needed when a Ghanaian company sends an employee to work at a client's premises or at a joint venture partner's operation for a defined project or capacity-building exercise. Common examples include engineering and construction companies seconding technical staff to project sites, banks seconding staff to the Bank of Ghana for regulatory work, and NGOs seconding staff to government ministries under development assistance programmes.

A Secondment Agreement is required when an international organisation — such as the United Nations, the African Development Bank, the World Bank, or a bilateral development agency — seconds a technical expert to a Ghanaian government ministry, district assembly, or public institution for a capacity development programme. The agreement specifies the supervisory arrangements between the international body and the Ghanaian host institution.

A Secondment Agreement is needed when a Ghanaian employee is seconded abroad — for example, to a regional head office in Nairobi, Lagos, London, or Dubai — to confirm that their Ghanaian employment rights, SSNIT pension contributions under the National Pensions Act 2008 (Act 766), and right of return at the end of the secondment are protected under the Labour Act 2003 (Act 651).

A Secondment Agreement is required when a professional services firm — such as a law firm enrolled with the Ghana Bar Association, an auditing firm registered with the Institute of Chartered Accountants Ghana (ICAG), or a medical practice — seconds a staff member to a corporate client or a regulatory body such as the Ghana Revenue Authority (GRA) or the Securities and Exchange Commission (SEC Ghana).

Parties in Ghana should prepare a Secondment Agreement before the employee begins working at the host organisation. Without a written agreement, disputes about remuneration, performance management, the right of return, and liability for the employee's acts may be difficult to resolve before the High Court (Commercial Division) in Accra or through arbitration under the Alternative Dispute Resolution Act 2010 (Act 798).

A binding Secondment Agreement in Ghana under the Labour Act 2003 (Act 651) and the Contract Act 1960 (Act 25) must contain the following essential elements.

Parties: Full legal names and addresses of the home employer, the host organisation, and the employee. For companies, the company registration number from the Office of the Registrar of Companies (ORC) under the Companies Act 2019 (Act 992) and the Tax Identification Number (TIN) from the Ghana Revenue Authority (GRA) must be stated. The employee's SSNIT membership number under the National Pensions Act 2008 (Act 766) should also be recorded.

Secondment Period: The commencement date, the expected end date, and whether the secondment may be extended by mutual written agreement. The Labour Act 2003 (Act 651) does not set a maximum secondment period, but extended secondments of more than two years may give rise to arguments that the employee has effectively transferred employment to the host.

Role and Duties at the Host: A description of the role, duties, and reporting line at the host organisation. The host's line manager and the employee's home employer supervisor should be identified. The employee's performance during the secondment may be assessed by the host, but formal HR decisions — including discipline, termination, and promotion — remain with the home employer under Act 651.

Remuneration and Benefits: A statement of who pays the employee's salary — whether the home employer continues to pay and is reimbursed by the host, or the host pays directly. The agreement must confirm that the employee receives at least the remuneration and benefits they were entitled to under their original employment contract. Allowances for housing, transport, or relocation specific to the secondment should be itemised.

SSNIT and Tax: Confirmation of which party makes SSNIT pension contributions at the rates required by the National Pensions Act 2008 (Act 766) and withholds and remits PAYE income tax under the Income Tax Act 2015 (Act 896). The arrangement must be disclosed to the Ghana Revenue Authority (GRA) where the tax position changes.

Leave and Benefits Continuity: Confirmation that the employee's annual leave entitlement under Section 31 of the Labour Act 2003 (Act 651) — a minimum of fifteen working days per year — and other contractual benefits continue to accrue during the secondment.

Workplace Safety and Liability: Which party is responsible for the employee's safety at the host's workplace under the Factories, Offices and Shops Act 1970 (Act 328) and the Workmen's Compensation Act 1987 (PNDCL 187). The host organisation must maintain a safe working environment for the seconded employee.

Confidentiality: The employee's obligation to maintain the confidentiality of both the home employer's and the host organisation's proprietary information, consistent with any Non-Disclosure Agreement signed by the employee. The Data Protection Act 2012 (Act 843) applies to personal data handled by the employee at the host.

Right of Return: A clear statement that the employee retains their employment with the home employer and has the right to return to a role of equivalent seniority, remuneration, and responsibility at the end of the secondment under the Labour Act 2003 (Act 651).

Termination of Secondment: The conditions under which either party may end the secondment early, the notice period required, and the employee's entitlement to return to the home employer immediately upon early termination.

Dispute Resolution: Whether disputes between the parties are referred to the National Labour Commission (NLC) under the Labour Act 2003 (Act 651), the High Court (Commercial Division) in Accra, or arbitration under the Alternative Dispute Resolution Act 2010 (Act 798).

Forms-legal.com provides this Secondment Agreement template as a starting point for employers and employees in Ghana. Parties should consult a solicitor enrolled with the Ghana Bar Association for complex intra-group or international secondments. The National Labour Commission (NLC) and the Ghana Revenue Authority (GRA) are the key regulatory authorities for employment and tax compliance during a secondment in Ghana.