CRITIQUING SECTIONS 8, 62, 64 AND 65 OF THE
LABOUR ACT, 2003 (ACT 651) OF GHANA
SECTION 8 — RIGHTS OF EMPLOYER
Introduction
Section 8 of the Labour Act, 2003 (Act 651) of Ghana grants employers the
authority to recruit, discipline, promote, transfer, and dismiss employees, as
well as to make key operational decisions such as setting targets, determining
products and prices.
This critique explores both the strengths and weaknesses of Section 8,
drawing on relevant legal scholarship and empirical evidence to assess its
effectiveness and implications in practice.
Content of Section 8
Subject to this Act and any other enactment, the rights of an
employer include the right to
(a) employ a worker, discipline, transfer, promote and terminate
the employment of the worker;
(b) formulate policies, execute plans and programmes to set
targets;
(c) modify, extend or cease operations; and
(d) determine the type of products to make or sell and the prices of
its goods and services.
Critiques - Strenghts
1. Gives Employers freedom to recruit employees: Section 8 subsection “a”
allows employers the legal backings to make important operational decisions
like hiring and firing.
2. Gives room for human Resource Management: The section empowers
employers the right to discipline, promote, transfer or terminate employment
in line with organizational goals.
3. Clearly states what employers are allowed to do: Subsection “b” and “c”
serve as basis for employer protection by putting their rights into legal
framework which strengthens employers to formulate policies for the
organization It strengthens the enforceability of management decisions and
offers a defense against wrongful claim litigation (Gyesi, 2024)
4. Protects Investment and Promotes Economic growth: Subsection “d”
allows employers business freedom to decide product types and pricing
strategies, Section 8 enhances Ghana's investment climate.
Critiques - Weaknesses or Challenges
1. No guidelines on disciplinary actions and termination: While
employers can discipline or terminate workers, Section 8 lacks explicit
procedural safeguards, which may result in arbitrary or unfair dismissals.
2. Potential ground for unfair use of Policy power: This means that
employers may formulate policies that may be too hard on workers if the
law does not set boundaries.
3. Imbalance between employer and employee rights: The section
robustly defines employer rights without offering a parallel clause for
workers, which may perpetuate power asymmetries in the workplace.
4. Absence of specific monitoring mechanisms: This section does not
does not make sure employers follow due process in their decision
making. This omission weakens the practical enforcement of labour
standards.
Conclusion
This section of Ghana’s Labour Act provides an
essential legal foundation for the operational and
managerial rights of employers. It supports
organizational autonomy and investment growth.
However, its effectiveness is limited by ambiguous
disciplinary provisions, lack of explicit worker
protections, and weak enforcement mechanisms.
SECTION 62: FAIR TERMINATION OF
EMPLOYMENT
Introduction
This section outlines the permissible grounds on
which an employer may lawfully terminate a
worker’s contract. While it aims to provide legal
clarity and protection against arbitrary dismissal,
several limitations have been identified in its scope,
procedural detail, and practical enforcement.
Content of Section 62
“A termination of a worker's employment is fair if the contract of
employment is terminated by the employer on any of the following
grounds:
(a) the incompetence or lack of qualification of the worker for the
work for which the worker is employed;
(b) the proven misconduct of the worker;
(c) redundancy under section 65; or
(d) due to legal restriction imposed on the worker prohibiting the
worker from performing the work for which the worker is
employed” (Ghana Labour Act, 2003)
Critiques - Strenghts
a. Legal certainty and clarity: Section 62 outlines four grounds for lawful
termination. This promotes transparency and legal certainty in employer-
employee relations. As (Tsikata, 2009) posits, a well-defined legal framework
for termination ensures both parties understand their rights and limitations.
b. Protection against discretionary dismissal: By limiting the circumstances
under which an employment contract may be terminated, Section 62 serves
as a barrier against arbitrary or unjustified dismissals, thereby promoting job
security and work place fairness.
c. Legal basis for redress and dispute resolution: The defined grounds allow
for judicial and administrative review of termination decisions, giving
employees a basis to challenge wrongful dismissals in court
d. Employer accountability: Section 62 (b) indirectly obliges employers to
document justification or gather evidences before terminating a contract,
promoting due diligence and Professional Human Resource practice.
Critiques - Weaknesses
a. Limited grounds for termination: The section offers only four
termination grounds, excluding legitimate causes like organizational
restructuring or consistent poor performance which varied inversely
with lack of qualification.
b. Insufficient procedural clarity: The section lacks detail on procedures
like hearings or formal notifications, which are critical for fairness
c. Ambiguous terminology: Terms like 'incompetence' and 'proven
misconduct' are undefined, allowing subjective interpretation and abuse.
d. Practical enforcement challenges: Many workers, especially in informal
sectors, are unaware of their rights and this lacks access to justice for the
informal sectors.
Conclusion
Section 62 of Ghana’s Labour Act serves as an essential legal safeguard
against unfair dismissal, promoting employer accountability and aligning
national labour practices with international standards. Despite the relevance,
the provision’s impact is constrained by ambiguous terminologies,
insufficient procedural clarity, and limited enforcement capacity. To enhance
its effectiveness, future legislative amendments should incorporate clearer
definitions, detailed procedural guidelines, and stronger mechanisms for
enforcement and public awareness.
