Annual leave cannot be cashed out while you are employed

By Equipo Saplic Published on 11/08/2026 Updated on 11/08/2026

It is one of the clearer rules in Act 651, and it is there for a reason.

In this guide
  1. Annual leave cannot be waived
  2. Annual leave entitlement
  3. Sick leave
  4. Maternity leave
  5. Rest periods
  6. Public holidays
  7. Keep your own record
  8. Where to raise a problem

Act 651 sets out leave entitlements for workers in Ghana, and one rule stands out for how firmly it is expressed.

Annual leave cannot be waived

Annual leave cannot be waived or replaced by a cash payment, except upon termination of employment.

That means an employer cannot buy out your leave to keep you working, and you cannot agree to give it up. The purpose of the entitlement is rest.

At termination, accrued and untaken leave is paid out.

Annual leave entitlement

Workers are entitled to paid annual leave after a qualifying period of continuous service, with the entitlement set out in the Act and frequently improved by contract or collective agreement.

Sick leave

Provided for under the Act, subject to medical certification.

Maternity leave

Female workers are entitled to maternity leave with protections around dismissal during that period.

Worth noting: a Draft Labour Bill, 2024 has been under review, which among other things proposes extending maternity leave and introducing paternity leave. If it passes, entitlements will change.

Rest periods

The Act provides for rest during the working day and for weekly rest.

Public holidays

Ghana observes public holidays declared by the government, with pay implications where you are required to work.

Keep your own record

If your employer does not maintain a formal leave register, keep your own note of days taken and any requests refused.

Because untaken leave is paid at termination, that record has real financial value at the end of the relationship.

Where to raise a problem

The Labour Department handles complaints, and the National Labour Commission handles disputes including unfair termination.

Frequently asked questions

Can my employer pay me instead of giving me leave?
No. Annual leave cannot be waived or replaced by a cash payment except upon termination of employment.
What happens to leave I never took?
Accrued and untaken leave is paid out at termination. That is why keeping your own record has real financial value.
Is maternity leave changing?
A Draft Labour Bill, 2024 has been under review proposing extended maternity leave and the introduction of paternity leave. If it passes, entitlements will change.
Should I keep my own leave record?
Yes, especially if your employer does not maintain a formal register. Note days taken and any requests refused.
Where do I raise a leave problem?
The Labour Department handles complaints, and the National Labour Commission handles disputes including unfair termination.

Sources

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