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Ethiopia
 


Source and scope of regulations - 2013    

References
  • Labour Proclamation Act No 377/2003 [LP];
    Date: 26 Feb 2004 (view in NATLEX »)
  • Labour (Amendment) Proclamation Act No 494/2006 [LAP]
    Date: 29 Jun 2006; view website » (view in NATLEX »)
Scope
Size of enterprises excluded (≤): none
Workers' categories excluded: civil/public servants; police; army; judiciary; managerial / executive positions
Remarks:
  • See art. 3 (2) LP.
    Are excluded from the application of the LP:
    * contracts relating to persons such as members of the Armed Force, member of the Police Force, workers of state administration, judges of courts of law, prosecutors and others whose employment relationship is governed by special laws,
    * contracts relating to persons holding managerial positions (see art. 3 (2) c) as amended by the LAP 2006)
    * contracts for the purpose of upbringing, treatment, care or rehabilitation;
    * contracts for the purpose of educating or training other than apprentices;
    * contracts relating to persons who performs an act in consideration of payments at his own business or professional responsibility under a contract of service.

    *Apprentices are not excluded from the general application of the LP. However termination of contracts of apprenticeship is regulated by specific rules (art. 51 LP) and provisions regarding severance pay, compensation and reinstatement are not applicable.

Types of employment contracts - 2013    

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Maximum probationary (trial) period: 45 day(s)

Remarks:
  • Art. 11 (3) LP.

Fixed term contract (FTC):
  • FTC regulated: Yes
  • Valid reasons for FTC use: objective and material reasons
    Remarks:
    • Art. 10 LP provides for a limited list of 9 cases when FTC can be concluded. The list includes amongst others temporary replacement of a permanent worker, urgent and abnormal pressure of work and seasonal work.
  • Maximum number of successive FTCs: no limitation
    Remarks:
    • No statutory limitation found in the legislation reviewed.
  • Maximum cumulative duration of successive FTCs: no limitation
    Remarks:
    • No statutory limitation found in the legislation reviewed.

Substantive requirements for dismissals (justified and prohibited grounds) - 2013    

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Obligation to provide reasons to the employee: Yes
Remarks:
  • Art. 34 (1) LP.


Valid grounds (justified dismissal): worker's conduct; worker's capacity; economic reasons
Remarks:
  • Art. 26 (1) LP.
    The LP defines limited grounds relating to the worker's conduct for resorting to termination without notice (art. 27 (1) LP). In addition, the grounds for termination with notice (relating to the worker's capacity or operational requirements) are listed in article 28 (1) and (2) LP).


Prohibited grounds: marital status; pregnancy; maternity leave; family responsibilities; filing a complaint against the employer; race; colour; sex; religion; political opinion; nationality/national origin; trade union membership and activities; ethnic origin
Remarks:
  • Art. 26 (2) LP.


Workers enjoying special protection: pregnant women and/or women on maternity leave
Remarks:
  • Art. 87 (5) LP: Prohibition to dismiss women workers during pregnancy and maternity leave (up 4 months after childbirth) except in case of serious misconduct (summary dismissal) and as a "last resort" in case of economic dismissal.


Procedural requirements for individual dismissals - 2013    

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Notification to the worker to be dismissed: written

Remarks:
  • Art. 34 (1) LP.

Notice period:
Remarks:
  • Art. 35 1) LP:
    The notice period varies according to the length of service or the ground for dismissal, as follows:
    - 1 month if the length of service does not exceed 1 year;
    - 2 months if the length of service is between 1 and 9 years;
    - 3 months if the length of service exceeds 9 years;
    OR:
    - 2 months when the contract is terminated due to reduction of the workforce.

    Note: The notice period for terminating a fixed-term contract shall be agreed upon by the parties (art. 35 2) LP).
    • tenure ≥ 6 months
      • non economic dismissal - 1 month(s).
      • economic dismissal - 2 month(s).
    • tenure ≥ 9 months
      • non economic dismissal - 1 month(s).
      • economic dismissal - 2 month(s).
    • tenure ≥ 2 years
      • non economic dismissal - 2 month(s).
      • economic dismissal - 2 month(s).
    • tenure ≥ 4 years
      • non economic dismissal - 2 month(s).
      • economic dismissal - 2 month(s).
    • tenure ≥ 5 years
      • non economic dismissal - 2 month(s).
      • economic dismissal - 2 month(s).
    • tenure ≥ 10 years
      • non economic dismissal - 3 month(s).
      • economic dismissal - 2 month(s).
    • tenure ≥ 20 years
      • non economic dismissal - 3 month(s).
      • economic dismissal - 2 month(s).

    Pay in lieu of notice: Yes

    Remarks:
    • See art. 44 (under the section concerning "Effects of the unlawful termination of contract of employment): non-compliance by the employer with the notice requirements shall only result in the payment by the employer of wages in lieu of the notice period.

    Notification to the public administration: No

    Notification to workers' representatives: No

    Approval by public administration or judicial bodies: No

    Approval by workers' representatives: No

    Procedural requirements for collective dismissals for economic reasons (redundancy, retrenchment) - 2013    

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    Definition of collective dismissal (number of employees concerned):
    "Reduction of workers" for economic reasons affecting at least:
    1) 10 % of the workers; or
    2) 5 workers over a period of 10 days in undertakings employing between 15 and 50 workers.

    Remarks:
    • Art. 29 (1) LP.

    Prior consultations with trade unions (workers' representatives): Yes

    Remarks:
    • Art. 29 (3) LP.

    Notification to the public administration: No

    Notification to workers' representatives: Yes

    Remarks:
    • Art. 29 (3) LP.

    Approval by public administration or judicial bodies: No

    Approval by workers' representatives: No

    Priority rules for collective dismissals (social considerations, age, job tenure): Yes

    Remarks:
    • Art. 29 (3) LP: workers with skills and a higher rate of productivity have priority to retain their posts. In case of equal skills and effectiveness, the workers to be affected must be in the following order: those with the shortest length of service, those with fewer dependents, disabled workers, worker's representatives and pregnant women.

    Employer's obligation to consider alternatives to dismissal (transfers, retraining...): No

    Priority rules for re-employment: No

    Severance pay and redundancy payment - 2013    

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    Severance pay:
    Remarks:
    • Art. 40 (1) &(2) LP:
      Severance pay amounts to:
      - 30 times the average daily pay of the last week of service for the first year of service. (For less than one year of service, severance pay should be calculated in proportion of the period of service),
      - If the worker has served for more than a year, severance pay shall be increased by 1/3 of the previous sum (that is 10 days' wages) for every additional year of service, within a limit of a total amount of 12 months' wages.

      [In addition to these amount, the worker is entitled to 30 days' wages in case of constructive dismissal: art. 41 LP]
    • tenure ≥ 6 months: 15 day(s)
    • tenure ≥ 9 months: 22.5 day(s)
    • tenure ≥ 1 year: 30 day(s)
    • tenure ≥ 2 years: 40 day(s)
    • tenure ≥ 4 years: 60 day(s)
    • tenure ≥ 5 years: 70 day(s)
    • tenure ≥ 10 years: 120 day(s)
    • tenure ≥ 20 years: 220 day(s)
    Redundancy payment:
    Remarks:
    • Art. 40 (3) LP: Severance pay + specific additional payment of 60 days' wages (2 months) in case of a collective dismissal on economic grounds ("reduction of workers") or closing down of the undertaking.
    • tenure ≥ 6 months: 75 day(s)
    • tenure ≥ 9 months: 82.5 day(s)
    • tenure ≥ 1 year: 90 day(s)
    • tenure ≥ 2 years: 100 day(s)
    • tenure ≥ 4 years: 120 day(s)
    • tenure ≥ 5 years: 130 day(s)
    • tenure ≥ 10 years: 180 day(s)
    • tenure ≥ 20 years: 280 day(s)

    Notes / Remarks
    1) Individual dismissal (including for economic reasons): severance pay
    2) Collective dismissal for economic reasons: redundancy payment

    Avenues for redress (penalties, remedies) and litigation procedure for individual complaints - 2013    

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    Compensation for unfair dismissal - free determination by court: No

    Remarks:
    • Art. 43(4) LP.

    Compensation for unfair dismissal - Legal limits (ceiling in months or calculation method):
    * Contract of an indefinite period:
    180 times the daily pay (6 months' wages) and a sum equal to the remuneration for the appropriate notice period.
    * Fixed-term contract:
    A sum equal to the wages the worker would have earned until the lawful end of his contract provided it does not exceed 180 days' wages.

    Remarks:
    • Art. 43(4) LP.

    Reinstatement available: Yes

    Remarks:
    • Art. 43 LP.
      Reinstatement is mandatory in case of unfair dismissal. However, when dismissal is unlawful, the court may award compensation in lieu of reinstatement if it believes that the continuation of the employment relationship will give rise to serious difficulties.

    Preliminary mandatory conciliation: No

    Competent court(s) / tribunal(s): labour court

    Remarks:
    • The labour division of the regional first instance court has jurisdiction over claims related to termination of employment: art. 138 1) a) LP.

    Existing arbitration: No

    Length of procedure: 60 day(s) (statutory)

    Remarks:
    • The legislation foresees statutory time frames for adjudicating the case (Art. 138 and 139 LP)
      * First instance court decision: 60 days from the date the complaint was registered.
      * Appeal should be lodged within 30 days from the first instance decision and the appeal decision should be delivered within 60 days from the date of the appeal.

    Source of additional information - 2013    

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    Links

    Use of International Law by Domestic Courts - Compendium »
    Go to "Dismissal" (second item) / Ethiopia.

    ILO Committee of Experts on the Application of Conventions and Recommendations - Comments (1990-2008) on the ILO Termination of Employment Convention, 1982, No. 158 »

    ILO termination of employment legislation digest - Ethiopia (last updated in 2007) »