Navigating the Upcoming Labour Law Changes: What Small Businesses Need to Know
Today, July 23, 2024, Finance Minister Mohammed Amin Adam presented the mid-year budget review for 2024 to Parliament. During his address, he announced progress on a draft Labour Bill slated for enactment before the year’s end.
As a small business owner, staying updated on changes in labour laws is crucial to ensure compliance and create a supportive work environment for your employees. The draft Labour Bill, 2024, proposes several key reforms that will impact businesses of all sizes, including SMEs. Here’s a breakdown of the most important changes and how they might affect your business.
1. Extension of Maternity Leave
Currently, the Labour Act, 2003 (Act 651) provides for a minimum of 12 weeks of maternity leave. The proposed changes will extend this period, giving new mothers more time to recover and bond with their newborns before returning to work. This change will require businesses to adjust their leave policies and plan for longer absences.
Current Act:
- Section 57 (1): A woman worker is entitled to at least twelve weeks of maternity leave with full pay.
Proposed Change:
- Draft Labour Bill, 2024: Extends maternity leave beyond the current 12 weeks, though the specific period has not been specified. It is worth mentioning that Ghana has one of the best maternity leave provisions across Africa, and this proposal will only improve it.
2. Introduction of Paternity Leave
The new bill introduces paternity leave, recognizing the role of fathers in early childcare. This is a significant shift from the current Labour Act, which does not mandate paternity leave. Small businesses will need to plan for these short-term absences and update their employee handbooks to reflect this new entitlement.
Current Act:
- No provision for paternity leave.
Proposed Change:
- Draft Labour Bill, 2024: Introduces paternity leave for fathers. Most African countries have no paternity leave provisions, and the few that do have less than 1 month of paternity leave days. A recent ruling in South Africa is changing their paternity leave from 10 days to about 4 months potentially.
3. Strengthening Labour Migration Governance
For SMEs that employ foreign workers, the new bill aims to streamline the processes involved in hiring and managing these employees. This includes better governance and coordination, which can reduce bureaucratic delays and make it easier for small businesses to hire the talent they need.
Current Act:
- Section 7 (e): Facilitates employment creation and the hiring of expatriates as provided in the Act.
Proposed Change:
- Draft Labour Bill, 2024: Enhances governance and coordination of labour migration.
4. Improved Employment Coordination
The proposed changes include measures to improve employment coordination, ensuring that businesses can find and hire suitable candidates more efficiently. This is particularly beneficial for SMEs that often operate with limited HR resources.
Current Act:
- Section 13 (1): The Ministry shall ensure effective coordination of employment creation and placement.
Proposed Change:
- Draft Labour Bill, 2024: Introduces measures for improved employment coordination.
What Should SMEs Do?
- Update Employee Handbooks: Reflect the changes in maternity and paternity leave policies.
- Plan for Absences: Adjust workflows and staffing plans to accommodate longer maternity leaves and new paternity leaves.
- Review Hiring Practices: Ensure compliance with enhanced labour migration governance.
- Stay Informed: Regularly check for updates on the Labour Bill and participate in any public consultations or forums.
By understanding and preparing for these upcoming changes, your business can ensure compliance and continue to provide a supportive work environment for your employees.