Ghana Employers Association, TUC to promote understanding of Labour Act

| Updated Nov 29, 2017 at 3:37pm



The Ghana Employers Association (GEA), in collaboration with the Trades Union Congress, (TUC), is embarking on a project to deepen the knowledge of the Labour Act 2003, Act 651 among operators in the informal economy.

This will help to sharpen the skills, and build the capacity of employers in the informal sector to appreciate the provisions of Act 651.

It also seeks to facilitate compliance of the Labour law to ensure industrial peace, high productivity, good labour-management cooperation among others to enhance the transition of the informal economy to formality.

In a statement, the Ghana Employers Association estimates that the informal sector forms about 86% of total employment. However, this number forms the most vulnerable in the employment chain.

The Informal Economy plays a critical role in the production and distribution of goods and services in the country.

However, lack of understanding of the Labour Act by players in the sector have made it difficult for for operators to comply with health and safety standards, pension schemes, among others.

The lack of understanding and appreciation of the Labour Act has led to increased decent work deficits and other illegitimate labour practices and abuses in the informal economy.

The absence of employment contract in the informal economy weakens the principle of social contract, among others. These challenges have led to the exploitation of employees in the sector.

The Director of Industrial Relations of the Ghana Employers Association, Joseph Kingsley Amuah, said these deficits in the informal economy have been largely attributed to the lack of understanding and appreciation of the Labour Act 2003 (Act 651) and its accompanying regulations.

He stated that a stakeholders’ workshop will be held to bring together the Ministry of Employment and Labour Relations and the National Labour Commission to discuss how the two institutions can assist the Informal Economy to meaningfully apply and implement the Labour Act at the workplace.

This is because, the sector is a critical component of local economies and a crucial livelihood strategy for the poor and the very poor urban majorities.

Educating informal economy operators to understand and appreciate the Labour Act will not only assist in addressing the decent work deficits in the sector but also contribute to a more conducive policy environment for enterprise creation, improved labour standards, industrial peace and harmony and increased productivity and development.

There will be media engagement to promote the project and the need to support the informal economy to understand and appreciate the Labour Act 2003.

About 200 Informal Economy Operators have been trained to extend the training on the Labour Act to their members.