Introduction
Business restructuring, technological advancement, mergers, and
economic pressures frequently cause significant changes in business
operations. One common outcome of such changes is the termination
of employment of workers, not due to their misconduct or poor
performance, but because the workers' roles are no longer
required. This form of termination, known as
"redundancy", is expressly recognised under Ghanaian
labour law as a lawful ground for terminating employment, provided
that the employer complies strictly with the statutory
procedure.
For employees, a lawful redundancy may come with substantial
financial compensation from their employers. For employers,
however, their decisions leading up to the redundancy could
determine whether or not they will face liability for unfair
termination. This article provides a practical overview of
redundancy under Ghanaian law, the procedure for conducting a
lawful redundancy exercise, the negotiation of
