Labour Minister Moves to Enforce End-of-Service Benefits Law
Sia Lucy Kannah The Minister of Employment, Labour and Social Security, Umaru Napoleon Koroma, has stepped up efforts to enforce Section 25 of the Employment Act 2023, which provides for end-of-service benefits, through consultations with employers, workers and other key stakeholders.
The Minister met with representatives of the Labour Congress, Employers’ Federation, the Ministry and Smart Systems (SL) Ltd to discuss the implementation of the law, following a directive issued two weeks earlier for a notice on full implementation and compliance with the provision.
Following the notice, the Ministry received feedback from employers and workers seeking clarification and proposing practical approaches to implementation.
Minister Koroma reaffirmed his commitment to enforcing the law while ensuring that the concerns of both employers and employees are considered. He stressed the importance of consultation and collaboration, noting that both parties depend on each other for the sustainability of businesses and the wider economy.
He explained that the engagement was intended to clarify the law’s requirements, address concerns and identify practical ways to ensure compliance. He also acknowledged that discussions on the implementation process began before his tenure and emphasised the need to build on the work already undertaken.
During the meeting, Mahmoud A. Idris, Executive Chairman of Smart Systems (SL) Ltd, the developers and administrators of the End-of-Service Benefits Platform, delivered a technical presentation and demonstration of the digital system designed to support the administration, monitoring and enforcement of the benefits scheme.
The platform is intended to connect employers, employees, trustees, fund managers and the Ministry through an integrated system that facilitates registration, calculates benefit liabilities, tracks funds and monitors compliance.
Its features include an automated mechanism for calculating employers’ obligations based on employee and salary information, a recognition ledger for recording accrued benefit liabilities, and approval workflows to strengthen accountability among the parties involved.
The system is also designed to support investment portfolio management, track returns on invested funds and generate compliance reports. These reports are expected to help the Ministry assess employers’ obligations, contributions, investment returns and any gaps between accrued liabilities and available funding.
Minister Koroma reiterated that the Ministry would work with employers, workers and other stakeholders to address implementation challenges while ensuring compliance with the Employment Act 2023.
