Expat Employment in Ghana: A Step-by-Step Compliance Guide
Hiring expatriates in Ghana for your Company comes with legal obligations that both employers and foreign employees must comply with. Whether you’re an employer looking to hire foreign talent or an expatriate considering a job transition, understanding immigration compliance is crucial to avoid penalties and unplanned expenses.
Before engaging in employment in Ghana, all foreign nationals must obtain a work permit or immigrant quota. This permit:
• Authorizes employment in Ghana and specifies the job title and employer.
• Restricts the expatriate from working for any other employer or engaging in unauthorized business activities.
• Must be complemented by a residence permit issued by the Comptroller General of Immigration before the expatriate can officially begin work.
Additionally, foreign spouses with specialized skills may apply for a work permit through the Minister of Interior, provided they reside with a legally permitted partner in Ghana.
Employer Responsibilities When an Expatriate Employee’s Contract Ends
When an expatriate’s employment is terminated, employers in Ghana must:
• Notify the Ghana Immigration Service (GIS).
• Cancel the employee’s work and residence permit to avoid accruing penalties of $100 per month for non-renewal.
• Ensure the expatriate exits Ghana upon termination of employment.
Failure to follow these steps makes the company liable for non-compliance penalties and potential legal consequences.
Employment Reporting Requirements
Both employers and expatriate employees must adhere to strict reporting obligations:
• Employment Start: Employers must notify the issuing authority and the Comptroller General within seven days of the expatriate’s first day at work. A letter of guarantee covering potential repatriation expenses must also be submitted.
• Employment Cessation: If a foreign employee leaves the company, the employer and the expatriate must notify the authorities within seven days and follow the directives for repatriation.
• Annual Returns: Employers must submit an annual report by January 14 each year, detailing the names and addresses of all foreign employees as of January 1.
Employer’s Liability for Repatriation
If an expatriate employee leaves their job and must be repatriated, the employer is responsible for covering all repatriation expenses for the employee and any dependents.
By ensuring compliance with these legal requirements, employers and expatriates can avoid unnecessary fines and legal complications while contributing to a smooth employment process in Ghana.
Navigating Ghana’s immigration and employment regulations can be complex, but ensuring compliance protects your business from unnecessary fines and legal risks. At Scribe Advisory, we provide expert guidance on work permits, residence permits, and corporate governance to help you manage expatriate employment seamlessly.
Need assistance with your compliance obligations? Contact us today to ensure your business stays on the right side of the law while creating a smooth transition for your foreign employees.