Sierra Leone Ministry Warns Employers Over Gratuity Account Rules

The Ministry of Employment, Labour and Social Security has warned public and private employers to comply with Section 25 of the Employment Act, 2023, on workers’ End-of-Service and Gratuity...

Sierra Leone’s Ministry of Employment, Labour and Social Security has warned employers in both the public and private sectors to comply with statutory requirements governing workers’ End-of-Service and Gratuity Benefits.

In a public notice dated September 16, 2026, the Ministry reminded employers that Section 25 of the Employment Act, 2023, also identified as Act No. 15 of 2023, requires them to establish a separate End-of-Service/Gratuity Benefits Bank Account.

The designated account is intended to hold funds for the payment of workers’ terminal benefits. The Ministry described the requirements as mandatory obligations for employers operating in Sierra Leone, rather than optional arrangements.

Reporting and withdrawal requirements

Employers are required to submit an annual status report on the account to the Commissioner of Labour. The Ministry also said funds in the designated account must not be withdrawn without prior written notice to the Commissioner of Labour.

Employers were urged to review their existing End-of-Service and Gratuity Benefit arrangements and take steps to ensure full compliance with Section 25.

Penalties for non-compliance

The Ministry said failure by an employer or a responsible officer to comply with the provision constitutes an offence. According to the notice, a person convicted of the offence may face a fine of not less than 300 months of the national minimum wage, imprisonment for not less than three years, or both.

The notice also states that an offending establishment may be closed if it is a repeat offender, subject to applicable statutory requirements.

The Ministry did not identify any particular employer or responsible officer as being accused of non-compliance, and the notice did not state that any fines, imprisonments or closures had already taken place.

The Ministry said it would intensify monitoring and enforcement measures to protect workers’ End-of-Service and Gratuity Benefits and promote compliance among employers.

“You have been warned,” the Ministry said in its closing message to employers.