Redundancy and final pay

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Redundancy and final pay

Worksheet under the Labour Act 2003 (Act 651) and a letter asking for the final settlement

Employee: [YOUR NAME]

Employer: [EMPLOYER NAME]

Employed: [FIRST DAY] to [LAST DAY]

1. My numbers

What Value

Monthly pay (normal remuneration, no overtime) GH₵ [AMOUNT]

Years of service [YEARS]

Notice paid in lieu? [YES / NO]

Annual leave days a year / taken this year [DAYS] / [DAYS]

Months worked this calendar year [MONTHS]

Redundancy pay agreed: weeks per year of service [WEEKS]

Unpaid salary and other pay owed GH₵ [AMOUNT]

2. The calculation

Step Amount

Weekly pay = monthly × 12 ÷ 52 GH₵ [AMOUNT]

Pay in lieu of notice (s. 17): 1 month if 3 years or more, otherwise 2 weeks GH₵ [AMOUNT]

Leave earned this year (s. 30): [DAYS] days × daily rate [AMOUNT] GH₵ [AMOUNT]

Redundancy pay (s. 65): agreed weeks × years × weekly pay GH₵ [AMOUNT]

Unpaid salary and other pay owed (s. 18) GH₵ [AMOUNT]

Total to ask for GH₵ [TOTAL]

What the Labour Act 2003 (Act 651) says • s. 17: one month's notice or a month's pay in lieu for a contract of three years or more; two weeks for less than three years; in writing. • s. 18: remuneration earned, deferred pay and compensation for sickness or accident are paid not later than the next working day after termination. • s. 30: annual leave in proportion to the service in the calendar year, and pay in lieu of notice, are not lost when employment ends. • s. 65: the employer informs the Chief Labour Officer and the union at least three months before; redundancy pay is negotiated; disputes go to the National Labour Commission. • s. 66: not for fixed-term, probation or casual workers. A collective agreement with better terms prevails (s. 19).

3. Letter asking for my final settlement

[YOUR NAME]

[YOUR ADDRESS OR GHANA POST GPS]

[DATE]

The Human Resource Manager

[EMPLOYER NAME]

[EMPLOYER ADDRESS]

Subject: Redundancy — final settlement and redundancy pay

Dear Sir/Madam,

I refer to your letter of [DATE OF NOTICE] informing me that my position as [JOB TITLE] will end on [LAST DAY] because of [REASON]. Before that date I would be grateful for a written breakdown of my final settlement.

Based on the Labour Act, 2003 (Act 651) and my records, I calculate the following:

pay in lieu of notice under section 17 — GH₵ [AMOUNT];

annual leave earned this year under section 30 — [DAYS] days, GH₵ [AMOUNT];

unpaid salary and other pay owed under section 18 — GH₵ [AMOUNT];

redundancy pay under section 65 at [WEEKS] weeks' pay per year of service — GH₵ [AMOUNT].

Total: GH₵ [TOTAL].

As section 65(4) provides that the amount and terms of redundancy pay are negotiated, I would like to meet with you and my union representative to agree them in writing. I also ask that remuneration earned before termination be paid not later than the next working day after my last day, as section 18 requires.

Please reply by [REPLY BY DATE]. Thank you for the years of work together.

Yours faithfully,

[YOUR NAME]

[PHONE]

If you cannot agree 1. Keep your appointment letter, payslips, leave record and this worksheet together. 2. Ask your union to negotiate with you; a collective agreement with better terms prevails (s. 19). 3. A dispute about redundancy pay may be referred to the National Labour Commission (s. 65(5)). 4. Ask about your SSNIT and Tier 2 statements — they are separate from the settlement.

A worksheet, not legal advice. Labour Act, 2003 (Act 651), checked 21 October 2026. The Act does not fix the amount of redundancy pay; the weeks per year are your agreement.