AYV News, October 27, 2026
The Minister of Employment, Labour and Social Security, Umaru Napoleon Koroma, has engaged representatives of the Labour Congress, Employers’ Federation, the Ministry and the service provider to discuss the implementation of Section 25 of the Employment Act 2023, which provides for end-of-service benefits.
The meeting followed the Minister’s directive issued two weeks ago for a notice to be circulated on the full implementation and compliance with the provision. Following the notice, the Ministry received feedback from employers and workers, including requests for clarification and suggestions on how best to implement the law.
Addressing the stakeholders, Minister Koroma emphasised the importance of consultation and collaboration in ensuring effective implementation, noting that employers and employees depend on each other for the success and sustainability of businesses and the wider economy.
He reaffirmed his commitment to enforcing the law while ensuring that the implementation process takes into account the legitimate concerns of all parties.
The Minister explained that the engagement was intended to bring stakeholders together to clarify the requirements of the law, address concerns and identify practical approaches to implementation. He also acknowledged that discussions on the matter had begun before his tenure and stressed the need to build on the existing work.
As part of the engagement, Mr. Mahmoud A. Idris, Executive Chairman Smart Systems (SL) Ltd, Developers and Administrators of the End of Service Benefits Platform delivered a technical presentation and demonstration of a digital platform designed to support the administration, monitoring and enforcement of end-of-service benefits.
The proposed platform is intended to bring together employers, employees, trustees, fund managers and the Ministry through an integrated system that facilitates the registration of relevant parties, calculation of benefit liabilities, tracking of funds and monitoring of compliance.
The presentation outlined key features of the system, including a liability calculation mechanism that automatically determines employers’ obligations based on employee and salary information, reducing the risk of errors associated with manual calculations.
It also highlighted the recognition ledger, which records accrued benefit liabilities, and approval workflows designed to strengthen accountability among employers, trustees, fund managers and the Ministry.
In addition, the platform is expected to support investment portfolio management, track returns on invested funds and provide compliance reports to enable the Ministry to assess employers’ obligations, contributions, investment returns and any gaps between accrued liabilities and available funding.
Mr. Idris explained that the proposed system would help the Ministry monitor compliance progressively, recognising that employers may require time to meet the applicable funding requirements. A phased approach was discussed, including a proposed benchmark of at least 7.5 per cent of liabilities by 2029, with progress monitored towards the relevant compliance targets.
The meeting also provided an opportunity for stakeholders to raise practical concerns about the implementation of the provision. These included the practice of paying end-of-service benefits annually at employees’ requests, the treatment of loans obtained by workers from their employers in anticipation of future benefits, and the possibility of funds being withdrawn or diverted after being deposited.
The concerns highlighted the need for clear procedures, effective safeguards and accountability mechanisms to ensure that workers’ entitlements are protected and that funds set aside for end-of-service benefits are properly managed.
Minister Koroma reiterated that the Ministry’s objective is to ensure compliance with the law while working collaboratively with employers, workers and other stakeholders to develop practical solutions to the challenges identified.
The engagement forms part of the Ministry’s broader efforts to strengthen labour administration, promote compliance with the Employment Act 2023 and safeguard the interests of both employers and employees through effective implementation of the law.
