Employer of Record in Ghana
Skuad’s Employer of Record Ghana (EOR) solutions make business expansion to Ghana easy and hassle-free. Our unique HR platform allows companies to hire exceptionally talented employees in Ghana, without having to set up a separate legal entity. It streamlines the process of hiring and onboarding a remote team by handling payroll management, taxation, and other legal compliances. To learn more, Book a demo today.
Ghana at a Glance
Population: 34,777,522 people (2024)
Currency: Ghanaian cedi (GHS)
Capital city: Accra
Languages spoken: English and Akan
Gross Domestic Product: 75.65 billions (2024 estimate)
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Employment in Ghana
The Ghana Labor Act of 2003 (Act 651) states that the companies employing people in Ghana for six months or more should issue and sign a written employment contract. The contract shall express all obligations and rights of the parties in clear terms.
You can avail yourself of Skuad’s Ghana EOR services to manage your expansion in a timely, hassle-free manner in compliance with the local laws. Talk to Skuad experts for more details.
Contractors vs. Full-time Employees
Contractors are the employees in Ghana who operate independently on a project or contract basis. They are not entitled to employer payroll benefits. Instead, they manage and pay their own taxes. Contractors work for different clients or companies in the short term.
- When to hire contractors: Employers should consider hiring contractors if the work is not related to the core business of the company, if the role is for a seasonal or short-term project, or if there is no need for close supervision of work.
- Advantages of hiring contractors: Most businesses consider hiring independent contractors for their work due to the low costs associated. Plus, employers get the flexibility of hiring independent contractors when needed for specific tasks or projects.
- Disadvantages of hiring contractors: The downside of hiring contractors is that employers don’t have much control over the work performed by contractors as they work independently and manage their workload and deadlines according to their convenience.
Hiring Full-time Employees
Full-time employees are the workers who are engaged with the company full-time. They work according to the company’s directions. Also, they are entitled to payroll and employee benefits.
- When to hire full-time employees: A company that wishes to conduct work in Ghana in the long term should consider hiring full-time employees if it is a position that does not have an ending date and fits their business model. Employers usually consider full-time positions for the work that is important to the company and its growth.
- Advantages of hiring full-time employees: Full-time employees are comparatively more committed to the vision of the company. They are loyal and less likely to switch jobs for a more lucrative position elsewhere. Further, the knowledge they gain and trade secrets can remain within the company’s employee circle.
- Disadvantages of hiring full-time employees: Such employees are eligible for employment benefits and that increases the costs for the employer. Also, employers need to pay their salaries whether the business is making a loss or a profit.
Whether your organization requires contractors or full-time employees, Skuad’s Ghana EOR solution can cater to all your hiring requirements. Learn more by talking to Skuad experts.
Hiring in Ghana
While hiring employees in Ghana, if need be, employers can consider hiring a third-party firm for conducting background checks on prospective employees. However, the investigations should comply with the local laws and not compromise the candidate’s privacy.
The hiring process begins by short-listing the potential applicants and collecting their data from a relevant public domain or third-party employment platforms such as LinkedIn. The consent of the subject is important before collecting the data.
Medical records, criminal records, and other information are considered confidential or personal information under Ghana’s Data Protection Act,2012. Hence, employers can retrieve all this information with the applicant’s consent only or if authorized by the country’s law.
Businesses can also head to job search platforms such as Monster, Craigslist, LinkedIn, and Ghanaian job portals such as GhanaJob.com and Joblistghana for recruitment. Employers often use these popular platforms to post job openings and potential employees create profiles after updating their qualifications. This streamlines and simplifies the recruitment process.
However, there are a few disadvantages of using these job search platforms as there are high chances of redundancy and spam. These platforms have a huge audience, which often diminishes the quality of the user experience on the sites.
Skuad can help you in hiring and onboarding both contractual and full-time employees. Our EOR services are driven toward giving the business the best-in-class cost-saving solutions. Moreover, by having us by your side, you won’t have to deal with the hassle of handling the liabilities related to hiring in Ghana. Our services are completely secure and will ease your work to a great extent. Talk to us to know more about our Ghana EOR solution.
Probation & Termination
The probation period is not specified in the law. However, it should be predetermined through a collective agreement between the employer and employee and should be reasonable. It is recommended to include the probation period, as mutually decided, in a written employment contract.
Termination of Service
To ensure your expansion endeavors adhere to the laws regarding probation and termination in Ghana, talk to Skuad experts and book a demo.
EOR Solution in Ghana
The Employers of Record (EOR) model is a smart solution for companies seeking to enter and expand in Ghana fast and agilely. With the help of Skuad's Employer of Record solution, business entities abroad can quickly source and hire the right professionals as per the organization's requirements. Hired employees get onboard seamlessly, helping your business save up a huge percentage of hiring and onboarding costs. Skuad’s End-to-end solutions help manage employment contracts, process payroll and income tax, blend statutory benefits, and manage overall administration of the backend HR processes. Our platform works as a unified employment platform with automated workflows, digital signatures, employee payroll, contractor payout, and all types of compliance solutions. Book a demo today
General Employer of Record Service Terms
Outsourcing Employment through an Employer of Record
Whether your business is looking for employees to meet strategic expansion requirements or you require skilled professionals for specific undertakings, our Ghana EOR solutions can help you find the right way to expand your company in Ghana. Contact us today to kick-start your expansion endeavor.
Types of Visas in Ghana
The main types of visas in Ghana are tabulated below.
Talk to us and get more information and guidance related to types of visas and work visa requirements in Ghana. Skuad can handle all your visa requirements and ensure the expansion process is not delayed.
Skuad’s local partner in Ghana can sponsor work permits for employees. As an EOR firm in Ghana, Skuad takes care of all the requirements and responsibilities related to employment.
To learn more about work permits in Ghana and how Skuad’s EOR solution for Ghana can secure them for you, talk to Skuad experts.
Payroll & Taxes in Ghana
Following acts are applicable in Ghana to manage payroll and taxes in the region
Things You Must Know to Set Up Payroll in Ghana
The Labor Act, 2003 regulates the payroll in Ghana. Every company looking forward to setting up their business in Ghana should have complete information on payroll management solutions. With the right information, they can make better decisions for payroll-related matters.
Payroll solutions in Ghana can be categorized into two outsourcing and in-house payroll systems.
Here is all you need to know about them.
Taxes in Ghana
The tax breakdown in Ghana is as follows.
To understand how payroll and taxes are managed in Ghana and expedite your expansion process, talk to Skuad experts and book a demo.
Bonuses account for about 15% of the annual base wage and are taxed at a rate of 5%.
Incorporation: How to Set Up a Subsidiary in Ghana
Company incorporation is one of the first steps to establishing a subsidiary in a different country. Incorporation means that your business has attained a legal status and is operating under local laws.
Before you set up a Ghana subsidiary, it is recommended to research factors such as costs, suitable locations available in the region, and Ghana subsidiary laws. It is best to contact a consultant who can help you find the right solutions, as per your requirements.
Note that the process of subsidiary establishment in Ghana varies according to entity type. Four types of entities can be established in Ghana.
- Public limited company
- Limited liability company (LLC)
- Free zone company
- Branch office
An LLC is one of the most preferred options as it facilitates businesses the freedom and flexibility to work similarly to a resident company in Ghana.
Follow the steps listed below to set up an LLC in Ghana.
- Register your office, postal addresses, and place of your business.
- Authorize your company’s number of shares and issue them.
- Write down the addresses and names of the shareholders of your company.
- Hire a company secretary.
- File and present all the required company documents and other details such as business type.
- File and document the information of at least two directors.
- File and document the address and name of your company’s auditor.
- Obtain the certificate of commencement of business and certificate of incorporation.
- Obtain a copy of the documents stating the regulations of your company.
Skuad can help you with subsidiary incorporation while saving you both time and money. Also, our services are formulated to ensure statutory compliances for national and international legislation, thereby reducing risks associated with incorporation. As your local partner, we simplify the entire process for the businesses.
To learn more about how our expertly designed solutions can work for you, talk to Skuad experts.
Professional Employer Organization (PEO)
A professional employer organization (PEO) works with businesses for leasing potential employees according to their requirements. The PEO manages and shares various liabilities and responsibilities related to employee hiring.
A PEO may ease the work of the company’s HR department by assisting them with the following.
- Hiring and recruitment
- Unemployment management
- Payroll management
- Compliance assistance
- Workers’ compensation management
- Medical leave management
Both PEOs and EOR services take control of an organization’s HR functions, but they differ in various aspects.
1. A PEO is a co-employer; thus, your company has an equal say when hiring employees. The PEO takes care of employee reviews, on-boarding, and contract termination. They may even offer advice to help you to make informed decisions related to hiring. However, in the end, the final decision remains with you.
On the other hand, an EOR service provider serves as the legal employer for your company in Ghana. In other words, the EOR service manages HR tasks efficiently and autonomously.
2. If you have access to enough resources for supplying the compliance documents, a PEO is an appropriate option for your organization.
However, if you do not know the local laws, an EOR service makes business expansion to new markets comparatively easier. In this case, you’ll have an expert by your side who will handle your organization’s hiring requirements.
3. Since a PEO is a co-employer, it does not take responsibility for any compliance-related liabilities and damages to your organization.
An EOR service is legally the owner of your subsidiary. Therefore, any issues arising due to the accidental contravention of the laws of the land are handled by an EOR service.
Skuad's EOR solution is a good way to expand your business in Ghana without setting up a separate entity. Our solutions help you to stay focused on your business and leave all business compliances, payroll processing and complete management work to us. Connect with Skuad to know more.
Conclusion: What Gives Skuad’s Ghana Solutions an Edge?
Skuad’s EOR solutions can offer you the greatest benefits when establishing your business in Ghana, where it is difficult to navigate the compliance risks, cost, and complexity of local employment.
Our advanced, tech-enabled, unified HR platform features a network of over 150 countries. We expedite your expansion process and provide bespoke end-to-end solutions to scale up your organization, from recruitment to termination.
To ensure the smooth expansion of your business in Ghana, book a consultation with Skuad experts today.