By Elizabeth Bidzakin KOMBAT
Ghana’s economic challenges, including its heavy reliance on primary commodities and limited value-added industries, have prompted the search for transformative policies. One such policy is the ‘24-Hour Economy’ initiative, proposed by President John Mahama.
The concept envisions a shift system, where businesses operate around the clock to boost economic growth and create jobs. However, the introduction of a 24-hour economy presents several legal implications for the labour market, particularly concerning working hours, overtime compensation, and workers’ rights. This article examines these implications within Ghana’s legal framework, drawing comparisons with other jurisdictions where similar policies have been implemented.
The ‘24-hour economy’ policy and its objectives
The NDC’s ‘24-Hour Economy’ policy aims to stimulate economic growth by enabling businesses to operate continuously, leveraging a shift-based work system. This policy targets key sectors, such as agro-processing, manufacturing, health services, and transportation, while offering government incentives including tax breaks, reliable electricity, and financing support. The adoption of this policy, however, raises significant legal concerns related to working hours, health and safety, collective bargaining, and gender equality in the workplace.
According to a report by the International Labour Organization (ILO), such policies have been successfully implemented in various countries, such as the United States and Germany, but with notable adjustments to labour law to ensure the protection of workers (International Labour Organization, 2020).
Legal impacts on labour: a comparative perspective
- Working hours and overtime regulations
Under Ghana’s Labour Act, 2003 (Act 651), the maximum working hours for an employee are set at 8 hours per day and 40 hours per week. Any work beyond these hours is classified as overtime, which requires additional compensation (Section 33-39, Labour Act, 2003). The introduction of a 24-hour economy would necessitate a shift to a 24/7 operational model, which could complicate adherence to existing labour laws, particularly regarding overtime.
A similar shift was seen in the United States during the Implementation of the Fair Labor Standards Act (FLSA), which sets strict limits on working hours and overtime compensation (U.S. Department of Labor, 2019). The U.S. model requires businesses to pay employees overtime for hours worked beyond the standard 40-hour workweek, regardless of whether the worker is engaged in shift-based work.
In contrast, many European countries, such as Germany, offer more flexible overtime regulations under the EU Working Time Directive, which permits longer working hours under certain conditions but mandates additional compensation and mandatory rest periods (European Commission, 2020).
In Ghana, the shift system proposed under the 24-hour economy would likely require amendments to the Labour Act to accommodate the new working hours, clarify overtime compensation, and ensure businesses comply with worker protections. Companies may face increased operational costs, particularly in sectors where specialized skills are required, and they may need to hire additional staff or adjust shift schedules to minimize the risk of legal challenges.
- Collective bargaining and new agreements
In jurisdictions with similar work policies, labour unions play a crucial role in negotiating terms of employment under a 24-hour work schedule. For instance, in the United Kingdom, the introduction of extended hours in the retail and hospitality sectors led to collective agreements that specifically address shift work, overtime, and worker welfare (Trade Union Congress, 2018).
Labour unions in Ghana may similarly demand revisions to collective bargaining agreements, pushing for better pay, job security, and favorable working conditions under the shift system. This could potentially lead to disputes if businesses fail to address these concerns. In the United States, unionized sectors such as healthcare and manufacturing have seen extensive negotiations around shift work, often resulting in higher pay for night shifts and additional benefits (National Labor Relations Board, 2021).
- Gender equality and workplace participation
In Ghana, women are underrepresented in industrial sectors, and socio-cultural expectations often limit their ability to participate in non-traditional work hours. In countries such as Sweden and Norway, policies supporting gender equality in the workforce, including parental leave and flexible working hours, have helped increase female participation in the economy (Nordic Council of Ministers, 2017).
A comparative analysis of such policies suggests that Ghana must consider targeted interventions, such as childcare support and flexible shift schedules, to ensure that the 24-hour economy does not disproportionately disadvantage women. Without such measures, the shift system could exacerbate existing gender inequalities, as women, burdened with domestic responsibilities, may be less likely to participate in night shifts or extended working hours.
- Worker health and safety
The health and safety of workers are crucial to the effective implementation of a 24-hour economy. Section 118 of Ghana’s Labour Act mandates employers to provide a safe working environment for their employees. However, long or irregular hours, particularly night shifts can lead to physical and psychological strain, increasing the risk of fatigue, workplace accidents, and long-term health issues (ILO, 2020).
This concern is evident in other jurisdictions that have adopted a 24-hour economy. In the United States, the Occupational Safety and Health Administration (OSHA) has introduced strict guidelines for night workers, emphasizing rest breaks, fatigue management, and adequate workplace lighting to ensure worker safety (U.S. Department of Labor, 2020). Similarly, in Australia, the Fair Work Commission has enacted regulations requiring employers to monitor and mitigate risks associated with extended working hours (Fair Work Commission, 2019).
For Ghana, adopting similar regulations and safety measures will be essential to protecting workers’ well-being, particularly in industries operating around the clock. Implementing clear policies on shift work, rest periods, and occupational health monitoring will help minimize the risks associated with a 24-hour economy while ensuring compliance with labour and safety standards.
Conclusion
The ‘24-Hour Economy’ policy has the potential to transform Ghana’s economic landscape, but its implementation requires careful consideration of the legal implications for the labour market. Drawing from international experience, a 24-hour economy necessitates changes to existing labour laws, including overtime compensation, health and safety standards, and collective bargaining agreements. To avoid legal challenges and ensure the protection of workers, Ghana may need to amend the Labour Act, 2003 (Act 651) to accommodate the shift system and establish clear guidelines for working hours, rest periods, and compensation.
Additionally, policies that promote gender equality and worker well-being will be crucial to ensuring that the benefits of the 24-hour economy are equitably shared across the workforce.
>>>the writer is the Managing Partner of BidzakinKombat, a private law firm in Accra, specializing in corporate and labor law, white-collar crime, criminal litigation and commercial law transactions. She can be reached via [email protected]
References
- European Commission. (2020). Working Time Directive: Legal Framework.
- Fair Work Commission. (2019). Health and Safety Regulations for Extended Hours.
- International Labour Organization. (2020). Labour Law and the 24-Hour Economy: A Global Perspective.
- National Labor Relations Board. (2021). Shift Work and Collective Bargaining in the U.S.
- Nordic Council of Ministers. (2017). Gender Equality in the Workforce: Policies for Inclusion.
- Trade Union Congress. (2018). Shift Work and Collective Bargaining in the UK.
- S. Department of Labor. (2019). Fair Labor Standards Act: Overtime Regulations.
- S. Department of Labor. (2020). Occupational Safety and Health Administration: Night Shift Regulations.
