Labour Ministry Moves to Strengthen End-of-Service Benefits Compliance
The Ministry of Employment, Labour and Social Security has engaged workers’ and employers’ representatives on the implementation of the end-of-service benefits provision under Section 25 of the Employment Act 2023.
The meeting, held in Freetown on Tuesday, 27 October 2026, was led by the Minister of Employment, Labour and Social Security, Umaru Napoleon Koroma, and brought together representatives of the Labour Congress, Employers’ Federation, the Ministry and Smart Systems (SL) Ltd, the company developing and administering the proposed End-of-Service Benefits Platform.
The engagement followed a notice issued by the Minister two weeks earlier calling for compliance with the law. The Ministry subsequently received feedback from employers and workers seeking clarification on the requirements and practical arrangements for implementing the provision.
Speaking at the meeting, Minister Koroma emphasised the importance of cooperation between employers and employees to ensure effective implementation. He assured stakeholders that the Ministry would enforce the law while taking into account the concerns raised by both parties.
During the engagement, the Executive Chairman of Smart Systems (SL) Ltd, Mahmoud A. Idris, demonstrated a digital platform designed to facilitate the management of end-of-service benefits and monitor compliance.
The proposed platform is expected to enable employers, employees, trustees, fund managers and the Ministry to register relevant parties, calculate benefit obligations, track funds and generate compliance reports. It also includes features for monitoring accrued liabilities, managing investments and strengthening accountability.
Stakeholders also discussed a phased approach to compliance, including a proposed benchmark requiring employers to fund at least 7.5 per cent of their liabilities by 2029. The approach is intended to give employers time to meet their funding obligations while their progress is monitored.
Several concerns were raised during the discussions, including requests by employees to receive their end-of-service benefits annually, loans taken against anticipated benefits and the risk of funds being withdrawn or diverted after they have been deposited.
The discussions underscored the need for clear guidelines and safeguards to ensure that workers receive their entitlements and that funds set aside for end-of-service benefits are properly managed.
Minister Koroma reaffirmed the Ministry’s commitment to working with employers, workers and other stakeholders to address the concerns raised and support the effective implementation of the Employment Act 2023.
The initiative forms part of the Ministry’s broader efforts to strengthen labour administration, promote compliance with employment laws and protect the interests of both employers and employees.
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