Redundancy Notice (Ghana)

A Redundancy Notice in Ghana communicates a binding demand or notice and the consequences of failing to comply. The National Labour Commission (NLC), established under Part XV of the Labour Act 2003 (Act 651), adjudicates disputes arising from redundancy declarations and enforces the statutory rights of workers. The NLC operates through conciliation and arbitration processes before disputes are escalated to the High Court (Labour Division) in Accra. Employers must comply with Section 65 of Act 651 in full before issuing a redundancy notice, or risk an unfair labour practice finding by the National Labour Commission. Section 65(1) of the Labour Act 2003 (Act 651) requires that before declaring any worker redundant, the employer shall consult the relevant trade union or workers' representative. Where the workers are members of a trade union affiliated to the Trades Union Congress (TUC) of Ghana or the Ghana Federation of Labour (GFL), the employer must notify and consult the union before issuing individual redundancy notices. The consultation must be genuine and allow the union an opportunity to propose alternatives to redundancy, such as reduced hours or redeployment. The worker must also be given the minimum period of notice before redundancy takes effect. The notice period must be not less than the contractual or statutory minimum notice applicable to the worker, which under Section 18 of Act 651 is at least one month for workers employed on monthly or continuous contracts. A failure to give adequate notice entitles the worker to payment in lieu of notice. Section 65(4) of the Labour Act 2003 (Act 651) requires the employer to pay the affected worker compensation for the redundancy, but Act 651 does not prescribe a fixed statutory formula for the amount. Instead, the amount and terms of the redundancy pay are negotiated between the employer and the worker or the worker's trade union, taking account of the worker's length of service, salary, the contract of employment, and any applicable collective bargaining agreement. Where the parties fail to agree, either party may refer the dispute over the quantum and terms of redundancy pay to the National Labour Commission under Section 65(5) of Act 651 for settlement. The Fair Wages and Salaries Commission Act 2007 (Act 737) establishes the Fair Wages and Salaries Commission (FWSC), which sets pay benchmarks in Ghana. The Ghana Revenue Authority (GRA) treats redundancy payments as taxable income under the Income Tax Act 2015 (Act 896), though certain exemptions and reliefs may apply. The Social Security and National Insurance Trust (SSNIT) administers Ghana's mandatory pension scheme under the National Pensions Act 2008 (Act 766). Upon redundancy, the employer must confirm that all SSNIT contributions up to the date of termination are remitted and that the worker receives their SSNIT contribution records. Workers with at least fifteen years of contributions may be eligible for early access to pension benefits. The Companies Act 2019 (Act 992) and registration with the Registrar General's Department (RGD) govern employers' corporate obligations independent of the redundancy process. Forms-legal.com provides this Redundancy Notice template as a compliant starting point for Ghanaian employers. Employers handling complex or large-scale redundancies involving twenty or more workers should seek advice from a solicitor enrolled with the Ghana Bar Association (GBA) and notify the Chief Labour Officer in accordance with Act 651.

A Redundancy Notice in Ghana is required whenever an employer decides to terminate employment on the grounds of redundancy as defined by Section 65 of the Labour Act 2003 (Act 651). The document protects both employer and worker by recording the statutory basis for termination and the entitlements due.

A Redundancy Notice is required when a company registered under the Companies Act 2019 (Act 992) with the Registrar General's Department (RGD) closes a department, factory, or branch and no suitable alternative employment exists for the affected workers. The notice must be issued after the mandatory consultation with the relevant trade union or workers' representative under Section 65(1) of Act 651.

A Redundancy Notice is needed when a business undergoes restructuring due to technological change or automation that reduces the number of positions required. Section 65(1)(d) of Act 651 specifically recognises changes in technology or working methods as a valid ground for redundancy, making a formal notice essential to confirm the lawful basis for termination.

A Redundancy Notice is required when a foreign-invested company licensed by the Ghana Investment Promotion Centre (GIPC) under the Ghana Investment Promotion Centre Act 2013 (Act 865) reduces its workforce following a change in business strategy. Compliance with Section 65 of Act 651 is a condition of operating lawfully in Ghana and is monitored by the Labour Commission.

A Redundancy Notice is needed when a financial institution licensed by the Bank of Ghana (BoG) under the Banks and Specialised Deposit-Taking Institutions Act 2016 (Act 930) undergoes a merger, acquisition, or portfolio reduction that renders certain positions redundant. The NLC has jurisdiction over redundancy disputes in the financial sector.

A Redundancy Notice is required when an employer in the mining sector licensed by the Minerals Commission under the Minerals and Mining Act 2006 (Act 703) closes a mine site or reduces extraction operations. The mining sector employs large numbers of Ghanaian workers and is subject to the full application of Act 651.

The Redundancy Notice must be issued promptly once the decision to declare redundancy has been made and consultation has been completed. Delay in issuing formal notice may give rise to constructive dismissal claims before the National Labour Commission (NLC) or the High Court (Labour Division) in Accra.

A compliant Redundancy Notice in Ghana under Section 65 of the Labour Act 2003 (Act 651) must contain the following essential elements.

Employer and Employee Identification: Full legal name of the employer as registered with the Registrar General's Department (RGD) under the Companies Act 2019 (Act 992), employer address, and the full name, position, department, and employee number of the affected worker. The Ghana Card number issued by the National Identification Authority (NIA) and SSNIT registration number should be referenced.

Statutory Basis for Redundancy: A clear statement that the termination is on grounds of redundancy as defined by Section 65 of the Labour Act 2003 (Act 651), with a brief description of the specific reason — closure of business, reduction in workforce, technological change, or cessation of the worker's category of work.

Consultation Record: Confirmation that the employer complied with the mandatory consultation requirement under Section 65(1) of Act 651, including the date consultation commenced, the trade union or workers' representative involved, and the outcome of the consultation process. Where the relevant union is affiliated with the Trades Union Congress (TUC) of Ghana or the Ghana Federation of Labour (GFL), the union's name should be stated.

Notice Period: The effective date of redundancy and the notice period being given. Under Section 18 of the Labour Act 2003 (Act 651), the minimum notice for monthly-paid workers is one month. Where the contractual notice exceeds the statutory minimum, the longer period applies. Where notice cannot be worked, the employer must pay salary in lieu of notice.

Redundancy Pay: A clear statement of the redundancy pay due to the worker under Section 65(4) of Act 651. The Labour Act 2003 does not fix a statutory formula for redundancy pay; the amount and terms are negotiated between the employer and the worker or the worker's trade union, taking account of length of service, salary, the contract of employment, and any collective bargaining agreement. Where there is no agreement, the quantum and terms may be referred to the National Labour Commission under Section 65(5). The notice should state the number of completed years of service and the total amount payable. Taxation of redundancy pay under the Income Tax Act 2015 (Act 896) and the applicable withholding tax rate should be noted.

Final Pay Statement: Details of all amounts due on termination, including accrued salary to the date of termination, accrued and untaken annual leave under Section 20 of Act 651, the redundancy benefit, and any other contractual entitlements. SSNIT contributions up to the date of termination must be remitted to the Social Security and National Insurance Trust.

Return of Company Property: A requirement for the worker to return all company property — access cards, laptops, vehicles, and confidential documents — before or on the last day of employment.

Right to Appeal or Complain: Information about the worker's right to refer a dispute about the redundancy to the National Labour Commission (NLC) under Act 651 if the worker considers the redundancy to be procedurally or substantively unfair.

Forms-legal.com provides this Redundancy Notice template as a structured starting point for Ghanaian employers under the Labour Act 2003 (Act 651). Large-scale redundancies involving twenty or more workers require notification to the Chief Labour Officer under Act 651 and should be managed with the assistance of a solicitor enrolled with the Ghana Bar Association (GBA) and an HR professional familiar with NLC practice.

Additional compliance elements for a Redundancy Notice (Ghana) used in Ghana include: Under the Labour Act 2003 (Act 651), the National Labour Commission (NLC) adjudicates workplace disputes in Ghana. Section 12 of the Labour Act 2003 requires written terms of employment. The National Pensions Act 2008 (Act 766) mandates employer contributions to the Social Security and National Insurance Trust (SSNIT). The Ghana Revenue Authority (GRA) administers PAYE under the Income Tax Act 2015 (Act 896). The Labour Division of the High Court hears employment appeals. Forms-legal.com provides this template as a starting point for Ghana-compliant documentation.