Ghanaian workers won't be fired due to COVID-19 pandemic according to Ghana Employers Association

The Ghana Employers Association (GEA) has indicated that it does not expect its members to dismiss their employees to ease the impact of the coronavirus on the businesses.

Mr Alex Frimpong - Chief Executive Officer of the Ghana Employers’ Association

The Chief Executive of the Association, Alex Frimpong, told Joy News that this is, however, dependent on ongoing discussions between the Association and the government on how to prevent staff layoffs in the coming days.

“The last decision that businesses will want to take in this crisis is to lay off. Currently, we are in discussion with the government on so many options that are likely to cushion the impact of the COVID-19 on businesses.”

“So we are hopeful and more encouraged that these measures will yield results and support businesses so that the issue of any likely lay off maybe something that may not come to fruition,” he added.

Companies worldwide have cautioned that they may collapse since the disease is disrupting their growth projections and profits.

Some governments have taken steps to prevent the collapse of businesses and layoffs

The UK government, for instance, will pay the salaries of employees who are unable to work due to the coronavirus pandemic.

In Ghana, the Emergency Response Fund will seek to do a similar thing.

But the Chief Executive of Ghana Employers Association said modalities on how Ghanaian companies access the fund is yet to be concluded.

“In the coming days and weeks, we will be engaging the relevant ministries, department, and agencies on how employers can access this fund so that they [firms] can respond positively to run their businesses and the question of layoff may be the last option…” he said.

He explained that it was important for the government to intervene as the pandemic is causing havoc to business and the macroeconomy because “government runs primarily on the taxes that are paid by these corporate bodies.”

He suggested that the government could defer the payment of taxes – VAT and income tax – to ease the financial burden on companies by the pandemic.


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