In spite of the rapid growth and importance of informal employment in Ghana,
few studies have investigated the extent of coverage of labour standards
application, as a form of labour market regulation. This paper investigates
the extent of labour standards application in shaping the employment
relations and conditions within the informal economy. The study focuses on 30
manufacturing firms in Ghana?s informal economy. Data were obtained through
interviews with 43 entrepreneurs and their workers, as well as with key
informants from the social partners of industrial relations. The study shows
that labour standards are generally not applied among informal economy
operators due to factors such as a lack of coverage of the existing labour
legislation, ineffective enforcement, ignorance, peculiarities of work
organisation, and the dynamics of the apprenticeship system. It is therefore
concluded that informal economy workers, who constitute the majority of the
workforce in Ghana, lack social protection and must be targeted for
intervention.