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Ethiopia. Labour Code
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ETHIOPIA

Labour Proclamation No. 42/1993.
        (Negarit Gazeta, 20 January 1993, Vol. 52, No. 27, pp. 268-328.)


TABLE OF CONTENTS

PART I. GENERAL (Sections 1-3)

PART II. EMPLOYMENT RELATIONS 4-52

PART III. WAGES 53-60

PART IV. HOURS OF WORK, WEEKLY REST AND PUBLIC HOLIDAYS 61-75

PART V. LEAVE 76-86

PART VI. WORKING CONDITIONS OF WOMEN AND YOUNG WORKERS 87-91

PART VII. OCCUPATIONAL SAFETY, HEALTH AND WORKING ENVIRONMENT 92-112

PART VIII. COLLECTIVE RELATIONS 113-135

PART IX. LABOUR DISPUTE 136-161

PART X. PERIOD OF LIMITATION AND PRIORITY OF CLAIMS 162-169

PART XI. ENFORCEMENT OF LABOUR LAW 170-182

PART XII. PENALTY AND TRANSITORY PROVISIONS 183-193


PART I. GENERAL

Section 1. Short title. This Proclamation may be cited as the "Labour Proclamation No. 42/1993".

Section 2. Definitions. In this Proclamation:

Section 3. Scope of Application.

(1) Without prejudice to subsection (2) above, this Proclamation shall be applicable to employment relations based on a contract of employment that exists between a worker and an employer.

(2) This Proclamation shall not be applicable to the following employment relations arising out of a contract of employment:

(3) Notwithstanding the provisions of subsection (1) above:


PART II. EMPLOYMENT RELATIONS

CHAPTER I. CONTRACT OF EMPLOYMENT

Division 1. Formation of contract

Section 4. Elements of a contract. (1) A contract of employment shall be deemed formed where a person agrees directly or indirectly, to perform work for and under the authority of an employer for a definite or indefinite period or piece work in return for remuneration.

(2) A contract of employment shall be stipulated clearly and in such manner so that the parties are left with no uncertainity as to their respective rights and obligations under the terms thereof.

(3) A contract of employment shall specify the type of employment and place of work, the rate of wages, method of calculation thereof, manner and interval of payment and duration of the contract.

(4) A contract of employment shall not be concluded for the performance of unlawful or immoral activities.

(5) The contract of employment shall not lay down less favourable conditions for the employee than those provided for by the law, collective agreement or work rules.

Section 5. Form. Unless otherwise provided by law, a contract of employment shall not be subject to any special form.

Section 6. A written contract of employment. Subject to the provisions of the relevant law, a written contract of employment shall specify the following:

Section 7. Contract of employment not made in writing. (1) Where the contract of employment is not made in written form, the employer shall, within 15 days from the conclusion of the contract, give the worker a written and signed statement containing the requirements specified under section 6 of this Proclamation.

(2) If the written statement referred to in subsection (1) above is not wholly or partly objected to by the worker within 15 days from the date of receipt, it shall be deemed a contract of employment concluded between the worker and the employer.

Section 8. Failure to comply. Failure to comply with the requirements of the provisions of sections 6 or 7 shall not deprive the worker of his rights under this Proclamation.

Division 2. Duration of contract of employment

Section 9. Contract for an indefinite period. Any contract of employment shall be deemed to have been concluded for an indefinite period except for those provided for under section 10 hereunder.

Section 10. Contract for definite period or piece work. A contract of employment may be concluded for a definite period or for piece work in the case of:

Section 11. Probation period. (1) A person may be employed for a probation period for the purpose of testing his suitability for a post to which he is expected to be assigned on the basis of a contract of employment.

(2) A worker re-employed by the same employer for the same job shall not be subject to probation.

(3) Where the parties agree to have a probation period, the agreement shall be made in writing. In such a case the probation period shall not exceed 45 consecutive days.

(4) Unless this Proclamation or work rules or collective agreement provides otherwise, during the probation period, the worker shall have the same rights and obligations as a worker who has completed his probation period.

(5) If the worker proves to be unfit for the job during his probation, the employer can terminate the contract of employment without being obliged to pay severance pay or compensation.

(6) A worker on probation may terminate his contract of employment without notice.

(7) If the worker continues to work after the expiry of the probation period, a contract of employment for the intended period or type of work shall be deemed to have been concluded from the beginning of the probation period.

Division 3. Obligations of Parties

Section 12. Obligations of an employer. An employer shall in addition to special stipulations in the contract have the following obligations:

(1)

(2)to pay the worker wages and other emoluments in accordance with this Proclamation or the collective agreement;

(3)to respect the worker's human dignity;

(4)to take all the necessary occupational safety and health measures and to abide by the standards and directives to be given by the appropriate authorities in respect of these measures;

(5)to defray the cost of medical examinations, whenever such medical examinations are required by law or the appropriate authority;

(6)to keep a register containing the relevant particulars specified in section 6, hereof weekly rest days, public holidays and leave utilized by the worker, health conditions and employment injuries of the worker and other particulars required by the Ministry;

(7)upon termination of a contract of employment or whenever the worker so requests, to provide the workers, free of charge, with a certificate stating the type of work he performed, the length of service and the wages he was earning;

(8)to observe the provisions of this Proclamations, collective agreement, work rules and directives issued in accordance with the law.

Section 13. Obligation of a worker. Every worker shall have the following obligations:

Section 14. Unlawful activity. (1) It shall be unlawful for an employer to:

(2) It shall be unlawful for a worker to:

Division 4. Modification of contract of employment

Section 15. Conditions of modification. Conditions of a contract of employment which are not determined under this Proclamation may be modified by:

Section 16. Amalgamation, division and transfer of ownership. Without prejudice to section 15 of this Proclamation amalgamation or division or transfer of ownership of an undertaking shall not have the effect of modifying a contract of employment.

Division 5. Temporary suspension of rights and obligations arising out of contract of employment

Section 17. General. (1) A contract of employment may be temporarily suspended in the manner provided for in this division.

(2) Suspension of rights and obligations arising out of a contract of employment shall not imply termination or interruption of the contract or the extinction of rights and obligations arising out of the contract, provided, however, that a contract of employment shall interrupt the obligation of:

Section 18. Grounds for suspension. The following shall be valid grounds for the suspension, in accordance with section 17, of rights and obligations arising out of a contract of employment:

Section 19. Duty to inform. When rights and obligations arising out of a contract of employment are suspended in accordance with subsection (5) or (6) of section 18, the employer shall inform the Ministry in writing within three days of the occurrence of the ground for suspension.

Section 20. Determination by the Ministry. (1) The Ministry shall determine the existence of good cause for suspension within three days after receipt of the written information pursuant to section 19.

(2) Where the Ministry finds that there is no good cause for suspension, it shall order the resumption of the work and payment for the days on which the work was suspended.

Section 21. Effect of confirmation or authorization of suspension. (1) Where the Ministry confirms or proves the existence of good cause for suspension, it shall fix the duration of the suspension, provided however that the duration shall not exceed a maximum of 90 days.

(2) Where the Ministry is convinced that the employer cannot resume its activities with the maximum period set under subsection (1) above, the worker shall be entitled to the benefits specified under sections 39 and 44.

Section 22. Effects of expiry of the period of suspension. The worker shall report for work on the working day following the date of expiry of suspension; and the employer shall reinstate a worker who so reports for work.


CHAPTER 2. TERMINATION OF EMPLOYMENT RELATIONS

Section 23. General. (1) A contract of employment shall only be terminated upon initiation by the employer or worker and in accordance with the provisions of the law or a collective agreement or by the agreement of the two parties.

(2) The amalgamation or division or transfer of ownership of an undertaking shall not have the effect of terminating a contract of employment.

Division 1. Termination of contract of employment by law or by agreement

Section 24. Termination by law. A contract of employment shall terminate on the following grounds:

Section 25. Termination by agreement. (1) The parties may terminate their contract of employment by agreement, provided however that waiver by the worker of any of his rights under the law shall have no legal effect.

(2) Termination by agreement shall be effective and binding on the worker only where it is made in writing.

Division 2. Termination at the request of the contracting parties

Subdivision (i) Termination by the employer

Section 26. General. (1) A contract of employment may only be terminated where there are grounds connected with the worker's conduct or with objective circumstances arising out of his ability to do his work or the organizational or operational requirements of the undertaking.

(2) The following shall not be deemed to constitute legitimate grounds for the termination of a contract of employment:

Section 27. Termination without notice. (1) Unless otherwise determined by a collective agreement, a contract of employment shall be terminated without notice only on the following grounds:

(2) Where an employer terminates a contract of employment in accordance with this section, he shall give written notice specifying the reasons for and the date of termination.

Section 28. Termination with notice. (1) The following grounds relating to the loss of capacity of, and situations affecting, the worker shall constitute good cause for terminating a contract of employment with notice:

(2) The following grounds relating to the organizational or operational requirements of the undertaking shall constitute good cause for the termination of a contract of employment with notice:

(3) Where the cancellation of a post affects a number of workers thereby constituting a reduction of workforce in accordance with subsection (1) of section 29, the termination shall take place in compliance with the requirements laid down in subsection (3) of section 29.

Section 29. Reduction of workers. (1) In this Proclamation, "reduction of workforce" means reduction of the workforce of an undertaking for any of the reasons provided for in subsection (2) of section 28 affecting a number of workers representing at least 10 per cent of the number of workers employed or, in the case of an undertaking where the number of workers employed is between 20 and 50, a reduction of workers affecting at least five employees over a continuous period of not less than ten days.

(2) The phrase "number of workers employed" referred to in subsection (1) of this section means the average number of the workers employed by an employer concerned, within the 12 months preceeding the date when the employer took measures of reduction of workers.

(3) Whenever a reduction of workforce takes place according to subsection (2) of section 28, workers having skills and a higher rate of productivity shall have priority of being retained in their posts and, in the case of equal skill and rate of productivity, the workers to be affected first by the reduction shall be in the following order:

Section 30. Exceptions. (1) The procedure laid down in this Proclamation shall not apply to the reduction of workers due to normal decrease in the volume of a construction work as a result of its successive completion unless the reduction affects workers employed for parts of the work before the work for which they are employed is completed.

(2) In subsection (1) of this section, "construction work" includes the construction of a building, road, railway line, sea port, dam, bridge, installation of machinery and similar works of transformation, extension, repair or maintenance.

Subdivision 2. Termination by the worker

Section 31. Termination with notice. Without prejudice to section 32 of this Proclamation, any worker who has completed his probation period, may, by giving 15 days' prior notice to the employer, terminate his contract of employment.

Section 32. Termination without notice. (1) The following shall be good cause for a worker to terminate his contract of employment without notice:

(2) Where a worker terminates his contract of employment for the reasons referred to under subsection (1) of this section, he shall inform the employer in writing the reasons for termination and the date on which the termination is to take effect.

Section 33. Period of limitation. A worker's right to terminate his contract of employment in accordance with subsection (1) of section 32 shall lapse after 15 working days from the date on which the act occurred or ceased to exist.


CHAPTER 3. COMMON PROVISIONS WITH RESPECT TO TERMINATION

Division 1. Notice to terminate a contract of employment

Section 34. Procedure for giving notice. (1) Notice of termination required under the provisions of this Proclamation shall be in writing. The notice shall specify the reasons for the termination of the contract and the date on which the termination shall take effect.

(2) Notice of termination by the employer or his representative shall be handed to the worker in person. Where it is not possible to find the worker or he refuses to receive the notice, it shall be affixed on the notice board in the work place of the worker for ten consecutive days.

(3) Notice of termination by the worker shall be handed to the employer or his representative or delivered to his office.

(4) Notice of termination given to a worker by an employer in accordance with section 17 during the time in which the contract of employment is suspended shall be null and void.

Section 35. Period of notice. (1) Unless otherwise provided for in this Proclamation, the period of notice for the termination of a contract of employment shall be as follows:

(2) Notwithstanding the provisions of subsection (1) of this section, the period of notice for a contract of employment for a definite period or piece work shall be agreed upon by the parties in the said contract.

(3) The period of notice fixed in this Proclamation shall run from the first working day following the date when notice is duly given.

(4) The obligations of the parties deriving from the contract of employment shall continue in force during the period of notice.

Division 2. Payment of wages and other payments on termination of contract of employment

Section 36. Period of payment. Where a contract of employment is terminated, wages and other payments connected with wages due to the worker shall be paid within seven working day from the date of termination, provided, however, that the time of payment may be extended where the worker delays, because of his own fault, to return property or any sum of money which he received from or is due to the employer.

Section 37. Amount in Dispute. In the event of a dispute as to the amount claimed by the worker the employer shall pay the worker the sum not in dispute within the time-limit specified under section 36.

Section 38. Effects of delay. An employer who fails to pay the sum due to the worker within the time-limit specified under section 36 shall pay his wages for the period of delay except where the delay is due to causes beyond the control of the employer, provided, however, that the payment shall not exceed one month's wages of the worker.

Division 3. Severance pay and compensation

Section 39. General. (1) A worker who has completed his probation and whose contract of employment is terminated under the provisions of this Proclamation shall be entitled to receive severance pay from the employer.

(2) Where a worker dies before receiving severance pay, the severance pay shall be paid to his dependants mentioned under section 110(2).

Section 40. Amount of severance pay. The severance pay referred to in section 39 shall be:

Section 41. Compensation for termination. A worker who terminates his contract of employment in accordance with section 32(1) shall be entitled, in addition to the severance pay referred to in section 39, to a payment of compensation which shall be 30 times his daily wages of the last week of service. This provision shall also apply to a worker covered by the relevant pension law.

Division 4. Effects of unlawful termination

Section 42. General. Where an employer or a worker fails to comply with the requirements laid down in this Proclamation regarding termination, the termination shall be unlawful.

Section 43. Reinstatement or compensation in the case of unlawful termination. (1) Where a contract of employment is terminated unlawfully contrary to subsection (2) of section 26, the employer shall be obliged to reinstate the worker, provided that the worker shall have the right to payment of compensation if he wishes to leave his employment.

(2) Subject to subsection 1 of this section, where a worker's contract of employment is terminated contrary to the provisions of sections 24, 25, 27, 28 and 29 of this Proclamation, the labour dispute settlement tribunal may order the reinstatement of the worker or the payment of employment.

(3) Notwithstanding subsection 2 of this section, the labour dispute settlement tribunal may order the dismissal of the worker upon payment of compensation even if the worker demands reinstatement where it believes that the continuation of the particular worker-employer relations, by its nature is likely to give rise to serious difficulties. Similarly, where a worker who, after obtaining judgement of reinstatement in his favour declines to be reinstated, the labour settlement tribunal may order the dismissal of the worker upon payment of full compensation or fair compensation for the inconvenience he incurred having regard to the nature of the work and other circumstances of the case.

(4) The compensation to be paid under subsections (1), (2) and (3) of this section shall, in addition to the severance pay referred to in sections 39-40, be as follows:

Section 44. Exceptions. Notwithstanding the provisions of section 43, non-compliance by the employer with the notice requirements specified under section 35 shall only result in the payment by the employer or wages in lieu of the notice period, in addition to any other compensation provided for under section 40 of this Proclamation.

Section 45. Liability of the worker. (1) A worker who terminates his contract of employment contrary to the provisions of section 31 or 35(2) shall be liable to pay compensation to the employer.

(2) The compensation payable by the worker in accordance with subsection (1) of this section, shall not exceed 15 days wages of the worker.


CHAPTER 4. SPECIAL CONTRACTS

Division 1. Homework contract

Section 46. Formation of contract. (1) There shall be a homework contract when a person habitually performs work for an employer in his home or any other place freely choosen by him in return for wages without any direct supervision or direction by the employer.

(2) An agreement for the sale of raw materials or tools by an employer to a homeworker and the resale of the products to the employer or any other similar arrangements made between the employer and the homeworker shall be deemed a homework contract.

(3) The contract concluded between a homeworker and an employer shall be deemed to be made for a definite period or piece-work.

(4) The Minister shall, in consultation with the concerned organs, prescribe by directives the provisions of this Proclamation that shall apply to homeworkers and the manner of their application.

Section 47. Records. An employer who employs a worker on the basis of a homework contract shall keep a register containing the following and other relevant particulars:

Division 2. Contract of apprenticeship

Section 48. Formation of contract. (1) There shall be a contract of apprenticeship when an employer agrees to give a person complete and systematic training in a given occupation related to the function of his undertaking in accordance with the skills of the trade and the person in turn agrees to obey the instructions given to carry out the training and works related thereto.

(2) The contract of apprenticeship shall be concluded with the person whose age is not less than 14 years.

(3) The contract of apprenticeship and its modifications shall be valid only where it is made in writing and attested to by the Ministry.

Section 49. Contents of the contract. A contract of apprenticeship shall specify at least the following:

Section 50. Obligations of the parties. (1) The apprentice shall diligently follow the training and endeavour to complete it successfully.

(2) The employer shall not assign the apprentice on an occupation which is not related and does not contribute to his training.

Section 51. Termination. (1) A contract of apprenticeship shall terminate on the following grounds:

(2) The employer may terminate the contract of apprenticeship by giving notice of termination referred to under subsection (1)(b) of this section, where:

(3) The apprentice may temrinate the contract of apprenticeship by giving notice of termination referred to under subsection (1)(b) of this section, where:

(4) The apprentice may terminate the contract without giving notice in accordance with subsection (1)(c) of this section where:

(a)he proves, by appropriate medical certificate, that he cannot discharge his obligations without seriously endangering his health; or

(b)the employer unilaterally changes the terms of the contract.

(5) The provisions of this Proclamation regarding severance pay, compensation and reinstatement shall not be applicable to contracts of apprenticeship.

Section 52. Certificate. The employer shall, upon the termination of the contract of apprenticeship, give to the apprentice a certificate which indicates the occupation he has been trained in, the duration of the training and other similar particulars.


PART III. WAGES

CHAPTER I. DETERMINATION OF WAGES

Section 53. General. (1) "Wages" means the regular payment to which the worker is entitled in return for the performance of the work that he performs under a contract of employment.

(2) For the purposes of this Proclamation, the following payments shall not be considered as wages:

Section 54. Conditions of payment for idle time. (1) Unless otherwise provided for in this Proclamation or the relevant law, wages shall be paid only for work done.

(2) Notwithstanding subsection (1) of this section, a worker shall be entitled to his wage if he was ready to work but, because of interruptions in supply of tools and raw materials or for reasons not attributable to him was not able to work.


CHAPTER II. MODE AND EXECUTION OF PAYMENT

Section 55. General. Wages shall be paid in cash, provided, however, that where the employer and worker so agree, it may be paid in kind. Wages paid in kind may not exceed the market value in the area of the payment in kind and in no case may then exceed 30 per cent of the wages paid in cash.

Section 56. Execution of payments. (1) Unless otherwise agreed, wages shall be paid on working day and at the place of work.

(2) In case where the payment mentioned in subsection (1) of this falls on Sunday or a public holiday, the day of payment shall fall on the preceeding working day.

Section 57. Payment in person. Unless otherwise provided by law or collective agreement, wages shall be paid directly to the worker or to a person delegated by him.

Section 58. Time of payment. Wages shall be paid at such intervals as are provided for by law or collective agreement or work rules or contract of employment.

Section 59. Deduction from wages. (1) The employer shall not deduct from, attach or set off the wages of the worker except where it is provided otherwise by law or collective agreement or work rules or in accordance with a court order or a written agreement of the worker.

(2) The amount in aggregate that may be deducted, at any one time, from the worker's wages shall in no case exceed one-third of his monthly wages.

Section 60. Record of payment. (1) The employer shall keep a register of payment specifying the gross pay and method of calculation of the wages, other variable remunerations, the amount and types of deductions, the net pay and other relevant particulars, unless there is a special arrangement, on which the signature of the worker is affixed.

(2) The employer shall have the obligation to make the register accessible, and to explain the entries thereof, to the worker at his request.

(3) The fact that a worker has received without protest the net amount indicated on the register shall not constitute waiver of his right to any part of his wages that was due.


PART IV. HOURS OF WORK, WEEKLY REST AND PUBLIC HOLIDAYS

CHAPTER I. HOURS OF WORK

Division 1. Normal hours of work

Section 61. Maximum daily or weekly hours of work. (1) Normal hours of work shall not exceed eight hours a day or 48 hours a week.

(2) In this Proclamation, "normal hours of work" means the time during which a worker actually performs work or avails himself for work in accordance with law, collective agreement or work rules.

Section 62. Reduction of normal hours of work. (1) The Minister may issue directives reducing normal hours of work for economic sectors, industries or occupations where there are special conditions of work.

(2) Reductions of normal hours of work under this Proclamation shall not entail reduction in the wages of the worker.

Section 63. Arrangement of weekly hours of work. Hours of work shall spread equally over the working days of a week, provided, however, where the nature of the work so requires hours of work in any one of the working days may be shortened and the differences be distributed over the remaining days of the week without extending the daily limits of eight hours by more than two hours.

Section 64. Averaging of normal hours of work. Where the circumstances in which the work has to be carried on are such that normal hours of work cannot be distributed evently over the individual week, normal hours of work may be calculated as an average over a period longer than one week, provided, however, that the average number of hours over a period shall not exceed eight hours per day or 48 hours per week.

Section 65. Exclusion. Unless otherwise provided in a collective agreement or work rules the provisions of this Proclamation shall not apply to commercial travellers or representatives.

Division 2. Overtime

Section 66. General. (1) Work done in excess of the normal daily hours of work fixed in accordance with the provisions of this Proclamation shall be deemed to be overtime.

(2) Work done within the limits referred to in sections 61, 63 and 64 shall not be deemed to be overtime.

(3) Overtime shall be worked only in cases expressly provided for under section 67 and on the express instructions of the employer.

(4) The instructions given under subsection (3) of this section and the actual overtime worked by each worker shall be recorded by the employer.

Section 67. Circumstances in which overtime work is permissible. (1) A worker may not be compelled to work overtime, however, overtime may be worked whenever the employer cannot be expected to resort to other measures and only where there is:

(2) Notwithstanding the provisions of subsection (1) of this section, overtime work of an individual worker due to urgent work shall not exceed two hours in a day or 20 hours in a month or 100 hours in a year.

Section 68. Overtime payment. (1) In addition to his wage, a worker who works overtime shall be entitled to the following payments:

(2) Payment for overtime work shall be effected on the day fixed for wage pay day.


CHAPTER II. WEEKLY REST

Section 69. General. (1) A worker shall be entitled to a weekly rest period consisting of not less than 24 non-interrupted hours in the course of each period of seven days.

(2) Unless otherwise determined by a collective agreement, the weekly rest period provided for in subsection (1) of this section shall, whenever possible:

(3) The weekly rest period shall be calculated as to include the period from 6 p.m. to the next 6 p.m.

Section 70. Special weekly rest scheme. (1) Where the nature of the work or the service performed by the employer is such that the weekly rest cannot fall on a Sunday another day may be made a weekly rest as a substitute.

(2) The provisions of subsection (1) of this section shall be applicable to the following and similar activities:

Section 71. Work done on weekly rest days. (1) A worker may be required to work on any weekly rest day only where it is necessary to avoid serious interference with the ordinary working of the undertaking in the case of:

(2) Subject to the provisions of section 68(c), a worker who, by virtue of the provisions of this Chapter, works on a weekly rest day, shall be entitled to a compensatory rest period; provided, however, that he shall be compensated in the form of money if his contract of employment is terminated before he is granted the compensatory rest period.

Section 72. Application. (1) The provisions of this chapter shall not apply to commercial travellers or representatives.

(2) The Minister may issue directives determining the special application of the provisions of this Chapter to workers who are directly engaged in the carriage of passengers and goods.


CHAPTER III. PUBLIC HOLIDAYS

Section 73. General. All public holidays observed under the relevant law shall be paid public holidays.

Section 74. Non-reduction of wages. (1) A worker who is paid on a monthly basis shall incur no reduction in his wages on account of having not worked on a public holiday.

(2) The payment of wages on a public holiday to a worker other than the payment mentioned under subsection (1) of this section shall be determined by his contract of employment or collective agreement.

Section 75. Payment for work on public holidays. (1) A worker shall be paid his hourly wages multiplied by two for each hour of work on a public holiday.

(2) Where a public holiday coincides with another public holiday or falls on a rest day designated by this Proclamation or any other special law, the worker shall be entitled to only one payment for working on such a day.


PART V. LEAVE

CHAPTER I. ANNUAL LEAVE

Section 76. General. (1) An agreement by a worker to waive in any manner his right to annual leave shall be null and void.

(2) Unless otherwise provided in this Proclamation, it is prohibited to pay wages in lieu of the annual leave.

Section 77. Duration of annual leave. (1) A worker shall be entitled to uninterrupted annual leave with pay which shall in no case be less than:

(2) Notwithstanding the provisions of subsection (1) of this section, additional annual leave with pay, for workers engaged in work which is particularly arduous, or the condition in which it is done is unhealthy, may be fixed in a collective agreement.

(3) The wage a worker receives during his annual leave shall be equal to what he would have received if he had continued to work.

(4) For purposes of determining the qualifying period of service required for the entitlement of an annual leave, 26 days of service in an undertaking shall be deemed to be equivalent to one month of employment.

(5) A worker whose contract of employment is terminated under this Proclamation is entitled to his pay for the leave he has not taken.

(6) Where the length of service of a worker does not qualify for an annual leave provided for in this section, the worker shall be entitled to an annual leave proportionate to the length of his service.

Section 78. Granting of leave. (1) A worker shall be granted his first period of leave after one year of service and his next and subsequent period of leave in the course of each calendar year.

(2) An employer shall grant a worker his leave, in accordance with a leave schedule, in the course of the calendar year in which it becomes due.

(3) The leave schedule referred to in subsection (2) of this section shall be drawn up by the employer with due regard as far as possible to:

Section 79. Dividing and postponing annual leave. (1) Notwithstanding the provisions of section 77, if a worker requests and the employer agrees, his leave may be granted in two parts.

(2) Annual leave may be postponed if the worker so requests and the employer agrees.

(3) An employer may, for reasons dictated by the work conditions of the undertaking, postpone the date of leave of a worker.

(4) Where a worker falls sick during his annual leave, sections 85 and 86 of this Proclamation shall apply.

(5) Any leave postponed in accordance with subsections (1) and (2) of this section shall not be postponed for more than two years.

Section 80. Recall. (1) A worker who is on leave may be recalled only where unforeseen circumstances require his presence at his post.

(2) A worker who is recalled from leave shall be entitled to a payment covering the remainder of his leave, excluding the time lost for the trip.

(3) The employer shall defray the transport expenses incurred by the worker as direct consequences of his being recalled and per diem.


CHAPTER II. SPECIAL LEAVE

Section 81. Leave for family events. (1) A worker shall be entitled to leave with pay for three working days when:

(2) A worker shall be entitled to leave without pay for up to five consecutive days in the case of exceptional and serious events.

Section 82. Union leave. Leaders of trade unions shall be entitled to leave with pay for the purpose of presenting cases in labour disputes, negotiating collective agreements, attending union meetings, seminars or training courses. The manner of granting such leave may be determined in a collective agreement.

Section 83. Leave for special purposes. (1) A worker who appears at hearings before bodies competent to hear labour disputes or to enforce labour laws shall be granted leave with pay only for the time utilized for the said purpose.

(2) A worker who exercises his civil rights or duties shall be granted leave with pay, only for the time utilized for the said purpose.

(3) The manner in which educational or training leave is to be granted and the form and extent of the financial assistance to be given may be determined in a collective agreement or work rules.

Section 84. Notification. A worker wishing to take leave in accordance with the provisions of this Chapter shall notify the employer in advance and present the necessary supporting evidence when the employer requests him.


CHAPTER III. SICK LEAVE

Section 85. Duration of leave. (1) Where a worker, after having completed his probation, is rendered incapable of work owing to sickness other than resulting from employment injury, he shall be entitled to a sick leave.

(2) The leave referred to in subsection (1) of this section shall, in no case, be more than six months counted consecutively or separately in the course of any 12-months' period starting from the first day of his sickness.

(3) Where a worker absents himself from work on grounds of sickness, he shall, except where the employer is in a position to be aware of the sickness or it is impractical, notify the employer the day following his absence.

(4) Unless the collective agreement provide otherwise, a worker shall be entitled to a sick leave upon presenting a valid medical certificate.

Section 86. Payment. The period of sick leave provided for in section 85 shall be granted in the following manner:


PART VI. WORKING CONDITIONS OF WOMEN AND YOUNG WORKERS

CHAPTER I. WORKING CONDITIONS OF WOMEN

Section 87. General. (1) Women shall not be discriminated against as regards employment and payment, on the basis of their sex.

(2) It is prohibited to employ women on types of work that may be listed by the Minister as particularly arduous or harmful to their health.

(3) No pregnant women shall be assigned to night work between 10 p.m. and 6 a.m. or be employed on overtime work.

(4) No pregnant woman shall be given an assignment outside her permanent place of work, provided, however, she shall be transferred to another place of work if her job is dangerous to her health or pregnancy as ascertained by a medical doctor.

(5) An employer shall not terminate the contract of employment of a women during her pregnancy and until four months of her confinement.

(6) Notwithstanding the provisions of subsection (5) of this section, the contract of employment of a pregnant women may be terminated for reasons specified under sections 25 and 29(3) of this Proclamation.

Section 88. Maternity leave. (1) An employer shall grant time off to a pregnant women worker without deducting her wages, for medical examination connected with her pregnancy, provided, however, that she is obliged to present a medical certificate of her examination.

(2) A pregnant woman worker shall, upon the recommendation of a medical doctor, be entitled to a leave with pay.

(3) A woman worker shall be granted a period of 30 consecutive days of leave with pay preceding the presumed date of her confinement and a period of 60 consecutive days of leave after her confinement.

(4) Where a pregnant woman worker does not deliver within the 30 days of her prenatal leave she is entitled to an additional leave until her confinement in accordance with subsection 2 of this section. If delivery takes place before the 30 days period has elapsed, the post-natal leave under subsection 3 of this section shall commence.


CHAPTER II. WORKING CONDITIONS OF YOUNG WORKERS

Section 89. General. (1) For the purpose of this Proclamation, "young worker" means a person who has attained the age of fourteen but is not over the age of 18 years.

(2) It is prohibited to employ persons under 14 years of age.

(3) It is prohibited to employ young workers which, on account of its nature or due to the condition in which it is carried out, endangers the life or health of the young workers performing it.

(4) The Minister may prescribe the list of activities prohibited to young workers which shall include in particular:

(5) The provisions of subsection (4) of this section shall not apply to work performed by young workers following courses in vocational schools that are approved and inspected by the competent authority.

Section 90. Limits of hours of work. Normal hours of work for young workers shall not exceed seven hours a day.

Section 91. Night and overtime work. It is prohibited to employ young workers on:


PART VII. OCCUPATIONAL SAFETY, HEALTH AND WORKING ENVIRONMENT

CHAPTER I. PREVENTIVE MEASURES

Section 92. Obligations of an employer. An employer shall take the necessary measures to safeguard adequately the health and safety of the workers; he shall in particular:

Section 93. Obligations of a worker. A worker shall:

Section 94. Prohibition. NO worker shall:


CHAPTER II. EMPLOYMENT INJURIES

Division 1. Liability

Section 95. General. (1) Subject to the provisions of the relevant pension law, the provisions of this Chapter shall apply to workers where an employment injury is sustained by a worker during or in connection with the performance of his work.

(2) For the purpose of this Proclamation, "employment injury" means an employment accident or occupational disease.

Section 96. Liability irrespective of fault. (1) The employment shall be liable, irrespective of fault, for employment injuries sustained by his worker and such liability shall be determined in accordance with the provisions of this Chapter.

(2) The employer shall not be liable for any injury intentionally caused by the injured worker himself; and injury resulting from the following acts in particular shall be deemed to be intentionally caused by the worker:

(3) The provisions of subsection (1) of this section shall not affect the right of a worker to claim damages in accordance with the relevant law where an employment injury is a result of fault on the part of the employer.

Section 97. Employment accident. For the purpose of this Proclamation, "employment accident" means any organic injury or functional disorder sustained by a worker as a result of any cause extraneous to the injured worker or any effort he makes during or in connection with the performance of his work and includes:

Section 98. Occupational disease. (1) For the purpose of this Proclamation, an "occupational disease" means any pathological condition whether caused by physical, chemical or biological agents which arises as a consequence of:

(2) Occupational disease shall not include endemic or epidemic disease which are prevalent and contracted in the area where the work is done, except in the case of workers exclusively engaged in combating such diseases by reason of their occupation.

(3) The Minister shall in consultation with the concerned authority issue directives which contain schedules listing diseases to be of occupational origin. The said schedule shall be revised at least every five years.

(4) The occurence of any of the diseases listed in the relevant schedule on any worker having been engaged in any one of the corresponding types of work specified therein shall, by itself, constitute sufficient proof of the occupational origin of the disease.

(5) Notwithstanding subsection (4) of this section proof shall be permitted to establish the occupational origin of a disease not listed in the relevant schedule and of diseases listed when they manifest themselves under conditions different from those establishing a presumption of their occupational origin.

(6) In the absence of proof to the contrary, any disease which occurs frequently only to persons employed in certain occupations shall be presumed to be of an occupational origin where the worker suffering from such a disease was engaged in such an occupation and the existence of the disease is ascertained by a medical doctor.

(7) The date on which an occupational disease became evident, i.e. the first date on which the worker became incapacitated or the date of the first medical diagnosis of the disease or the date of the injured worker's death, shall be considered as the date on which an employment injury occurred.

(8) Where a worker after being cured from an occupational disease listed in the relevant schedule, contracts the disease again as a result of his being engaged in any one of the corresponding work specified in the said list, it shall be presumed that he has contracted a fresh occupational disease.

Division 2. Degree of disablement

Section 99. General. (1) "Disablement" means any employment injury as a consequence of which there is a decrease or loss of capacity to work.

(2) Disablement shall have the following effects:

Section 100. Temporary disablement. Temporary disablement results from the reduction for a limited pereiod of time of the worker's capacity for work which prevents him from doing his work partially or totally.

Section 101. Permanent partial or total disablement. (1) "Permanent partial disablement" means incurable employment injury decreasing the injured worker's working capacity.

(2) "Permanent total disablement" means incurable employment injury which prevents the injured worker from engaging in any kind of remunerated work.

(3) Injuries which, although not resulting in incapacity for work, cause serious mutilation or disfigurement of the injured person shall be considered permanant partial disablement, for the purpose of compensation and other benefits.

Section 102. Assessment of disablement. (1) The degree of permanent total or partial disablement shall be fixed in accordance with the assessment table of disablement prescribed by directives issued by the Minister.

(2) The degree of disablement shall be assessed in accordance with the assessment table provided for in subsection (1) of this section, by a competent medical board. The board shall determine the extent of the degree of disablement as far as possible within twelve months from the date of injury.

(3) Disablement which has been assessed may be reviewed in accordance with subsections (1) and (2) of this section where the worker's condition deteriorates or improves or is wrongly diagonised:

(a)on the initiation of the appropriate authority; or

(b)at the request of the worker or employer concerned.

(4) Where the result of the review warrants it, the rights of the worker to a disablement benefit shall be recognized or withdrawn or the rate payable increased or reduced, as the case may be.

(5) Where a worker who has suffered an employment injury sustains a further employment injury, his disablement shall be reassessed in the light of his new circumstances.


CHAPTER III. BENEFITS IN THE CASE OF EMPLOYMENT INJURIES

Division 1. General

Section 103. Payment of benefits. Injury benefits shall be paid in accordance with the provisions of this Chapter.

Section 104. Special obligations. (1) An employer shall have the following obligations:

(2) The employer shall have the obligation to pay the funeral expenses specified under section 110(1)(b).

Division 2. Medical benefits

Section 105. Types of benefits. Where a worker sustains employment injury, the employer shall cover the following expenses:

Section 106. Duration of benefit. Medical benefits shall be withdrawn in accordance with the decisions of the Medical Board.

Division 3. Various kinds of cash benefits

Section 107. General. (1) A worker who has sustained employment injury shall be entitled to:

(2) Periodical payment may be suspended where a worker who has claimed or is receiving same:

(3) As soon as the circumstances that occasioned the suspension cease, the periodical payment shall recommence provided, however, that there shall be no entitlement to back pay for the period of suspension.

Section 108. Periodical payments. (1) The employer shall pay for one year the periodical payment mentioned in section 107(1)(a).

(2) The periodical payments referred to in subsection (1) of this section shall be at the rate of not less than 75 per cent (seventy-five per cent) of the worker's pervious average yearly wages during the first six months following the date of the injury and not less than 50 per cent (fifty per cent) of his previous average yearly wages for the remaining six months.

(3) Periodical payments shall cease whichever of the following takes place first:

Section 109. Disablement payments. (1) Unless otherwise provided for in a collective agreement disablement benefits payable to workers of state enterprises covered under this Proclamation shall be in accordance with the insurance scheme arranged by the undertaking or pensions law.

Where the undertaking does not have any insurance arrangement, the pension law shall apply to workers covered under this Proclamation.

(2) An employer shall pay a lump sum of disablement compensation to workers who are not covered by the pension law.

(3) The amount of the disablement compensation to be paid by the employer shall be:

(4) Where a worker who has sustained permanent disablement was at the date of the injury an apprentice, his disablement compensation payable in accordance with subsection (2) of this section shall be calculated by reference to the wages which he would probably have been receiving as a qualified workman after the end of his studies.

Section 110. Dependant's benefits. (1) Where a worker or an apprentice dies as a result of an employment injury, the following benefits shall be payable:

(2) The following shall be considered dependants:

(3) The amount of the dependants compensation for workers not covered by the Public Servants Pension Law, shall be a sum equal to five times the annual salary of the deceased and paid by the employer in a lump sum.

Section 111. Burden of proof. The benefits referred to in section 110 shall not be payable where the worker dies after 12 months from the date of the injury, unless it is proved that the injury was the principal contributory cause of his death.

Section 112. Benefits not taxable. (1) The benefits paid in accordance with the provisions of this section shall be free from any kind of tax.

(2) The benefits payable under the provisions of this section shall not be assigned, attached or deducted by way of setoff.


PART VIII. COLLECTIVE RELATIONS

CHAPTER I. TRADE UNIONS AND EMPLOYERS ASSOCIATIONS

Section 113. The right to form organizations. (1) Workers and employers shall have the right to establish and form trade unions or employers' associations, respectively and actively participate therein.

(2) In this Proclamation:

Section 114. Formation of organizations. (1) One trade union may be established in an undertaking where the number of workers is 20 or more.

(2) Workers who work in undertakings which have less than twenty workers may form a general trade union, provided, however, that the number of the members of the union shall not be less than 20.

(3) Trade unions may jointly form federations and federations may jointly form confederations.

(4) Employers' associations may jointly form employers' federations and employers' federations may jointly form an employers' confederation.

(5) No trade union or employers' association may form a confederation without forming federations.

(6) Any federation or confederation of trade unions or employers' associations may join international organizations of trade unions or employers.

Section 115. Functions of organizations. Organizations shall have the following functions:

Section 116. Functions of federations and confederations. In addition to those matters mentioned under section 115 federations and confederations shall have the following functions:

Section 117. Constitution of organizations. Trade unions and employers' associations shall issue their own constitutions. The constitutions may include inter alia the following:

Section 118. Registration of organizations. (1) Every organization shall be registered by the Ministry in accordance with this Proclamation.

(2) Every organization shall, upon its establishment, submit to the Ministry for registration the following documents:

(3) The Ministry shall, after examining the documents and ascertaining that they are duly completed, issue a certificate of registration within fifteen days of receiving the application. Where the Ministry does not notify its decision within this period, the organization shall be deemed registered.

(4) An organization which is not registered in accordance with the provisions of this Proclamation may not perform activities set forth in this Proclamation.

(5) A trade union or employers' association registered by the Ministry in accordance with this Proclamation shall have legal personality and, in particular, have the capacity to undertake the following activities:

Section 119. Refusal to register. The Ministry may refuse to register an organization for any one of the following reasons:

Section 120. Cancellation of registration. (1) The Ministry may cancel the certificate of registration of an organization on any one of the following grounds:

(2) The Ministry may upon request by an organization ensure that the organization is dissolved in such manner as it thinks appropriate.

Section 121. Notice to cancel registration. (1) The Ministry shall before cancelling the registration of an organization, give to the concerned organization one month prior notice specifying the reasons for the cancellation and the opportunity to oppose it. The Ministry may not specify any reason other than those enumerated in section 120.

(2) Where the one month period of notice provided for in subsection (1) of this section expires and the organization does not oppose the notice or the opposition is considered groundless by the Ministry, the Ministry may cancel the registration.

Section 122. Appeal. Where the Ministry refuses registration or cancels the registered organization, the organization may appeal to the competent court within 15 days from the date of the receipt of the decision in writing. During the hearing, the Ministry shall be given the opportunity to appear before the court and forward its opinion.

Section 123. Consequence of cancellation of registration. An organization shall be deemed dissolved, effective as of the date of the Ministry's refusal to register or cancellation of registration, if no timely appeal has been taken therefrom to the court, or, such an appeal having been taken, as of the date of the court's denying or dismissing the appeal.


CHAPTER II. COLLECTIVE AGREEMENT

Division 1. General

Section 124. Definition. (1) "Collective agreement" means an agreement concluded in writing between one or more representatives of trade unions and one or more employers or agents or representatives of employers' organizations.

(2) "Collective bargaining" means a negotiation made between employers' and workers' organizations or their representatives concerning conditions of work or collective agreement or the renewal and modifications of the collective agreement.

Section 125. Collective bargaining. (1) Trade union shall have the right to bargain a collective agreement with one or more employers or their organizations in matters provided for in section 128.

(2) Employers or employer associations shall have the right to bargain a collective agreement with their workers organized in a trade union.

Section 126. Representation. (1) The following shall have the right to represent workers during collective bargaining:

(2) The persons who represent the employer shall be the concerned employer or employers or those who are delegated by one or more employers' association.

Section 127. Advisers. Any bargaining party to a collective agreement may be assisted by advisers who render expert advice during the negotiation.

Section 128. Subject matter of a collective agreement. Matters concerning employment relationships and conditions of work as well as relations of employers and their organizations with workers' organizations may be determined by collective agreement.

Section 129. Contents. Without prejudice to the generality of section 128 of this Proclamation, the following may, inter alia, be determined by collective agreement.

Section 130. Procedure for collective bargaining. (1) A party wishing to conclude a collective bargaining may request the other party in writing. It shall also prepare and submit draft necessary for the negotiation.

(2) The requested party shall, within five days of receiving the request, appear for collective bargaining.

(3) The parties shall before commencing collective bargaining draw up the rules of procedure.

(4) Each party shall have the duty to bargain in good faith.

(5) Issues on which the parties could not reach agreement by negotiation in good faith shall be submitted to the competent labour disputes settlement tribunal.

Section 131. Registration of collective agreement. Upon executing a collective agreement, the parties shall transmit sufficient copies of the same to the Ministry for registration.

Section 132. Accession. A collective agreement which has already been signed and registered, may be acceded to by others.

Division 2. Conditions of validity

Section 133. Duration of validity. (1) Any provision of a collective agreement which provides for conditions of work and benefits which are less favourable than those provided for under this Proclamation or other laws shall be null and void.

(2) Unless replaced by another collective agreement, conditions of work, benefits and rights of workers stipulated in a collective agreement shall remain in force.

(3) Unless otherwise decided therein, a collective agreement shall have legal effect as from the date of signature.

(4) Unless expressly stipulated otherwise in a collective agreement, no party may challenge the collective agreement before three years from the date of its validity, provided, however, that:

(a)upon the occurrence of a major economic change, a challenge to the collective agreement may be submitted to the Minister by either party before the expiry of the fixed time;

(b)the Minister shall, upon receipt of a challenge to a collective agreement in accordance with this subsection (4)(a), assign an adviser with a view to enabling the two parties to settle the matter by agreement. If the two parties fail to settle the matter by agreement, section 142 of this Proclamation shall apply;

(c)the parties may at any time change or modify their collective agreement, provided, however, that without prejudice to the special conditions set forth in subsection (4)(a) and (b) of this section, a party may not be obliged without his consent to bargain a collective agreement to change or modify it before the said time-limit expires.

Division 3. Scope of application of a collective agreement

Section 134. Scope. (1) Every collective agreement shall be applicable to all parties covered by it.

(2) Where the collective agreement is more favourable to the workers in similar matters than those provided for by law, the collective agreement shall prevail. However, where the law is more favourable than the collective agreement, the law shall be applicable.

Section 135. Exception. (1) Where a trade union which is a party to a collective agreement is dissolved, the collective agreement shall continue to be valid between the employer and the workers.

(2) In the case of amalgamation of two or more undertakings, unless decided otherwise by the concerned parties:

(3) Where an undertaking is amalgamated or divided, the provisions of subsection (2) shall apply mutatis mutandis.


PART IX. LABOUR DISPUTE

CHAPTER I. GENERAL

Section 136. Definitions. In this Proclamation:

1."conciliation" means the activity conducted by a private person or persons appointed by the Ministry at the joint request of the parties for the purpose of bringing the parties together and seeking to arrange between them voluntary settlement of a labour dispute which their own efforts alone do not produce;

2."essential services" means those services rendered by undertakings to the general public and includes the following:

3."labour dispute" means any controversy arising between a worker and an employer or trade union and employers in respect of the application of law, collective agreement, work rules, employment contract or customary rules and also any disagreement arising during collective bargaining or in connection with a collective agreement;

4."lockout" means an economic pressure applied by closing a place of employment in order to persuade workers to accept certain labour conditions in connection with a labour dispute or to influence the outcome of the dispute;

5."strike" means the temporary cessation of work by any number of workers acting in concert in order to pursuade their employer to accept certain labour conditions in connection with a labour dispute or to influence the outcome of the dispute.


CHAPTER II. LABOUR COURTS

Section 137. Establishment of labour divisions. (1) There shall be set up labour divisions, as may be necessary, at each regional first instance court, each regional court which hears appeals from regional first instance courts and at the Central High Court.

(2) The Minister shall submit the number of labour divisions to be established in accordance with subsection (1) of this section to be determined by the appropriate authority.

Section 138. Labour division of the regional first instance court. (1) The labour division of the regional first instance court shall have jurisdiction to settle and determine the following and other similar individual labour disputes:

(2) The labour division of the regional first instance court shall give decisions within 60 days from the date on which the claim is lodged.

(3) The party who is not satisfied with the decision of the regional first instance court may, within 30 days from the date on which the decision was delivered, appeal to the labour division of the regional court which hears appeals from the regional first instance court.

Section 139. The labour division of the regional appelate court. (1) The labour division of the (regional) court which hears appeals from the regional first instance court shall have jurisdiction to hear and decide on the following matters:

(2) The decision of the court on appeal submitted to it under subsection (1) of this section shall be final.

Section 140. The labour division of the Central High Court. (1) The labour division of the Central High Court shall have jurisdiction to hear and decide on appeals against the decision of the Board on questions of law in accordance with section 154 of this Proclamation.

(2) The decision of the court under subsection (1) of this section shall be final.


CHAPTER III. CONCILIATION

Section 141. Assignment of conciliator. (1) When a dispute in respect of matters specified under section 142 is reported to the Ministry by either of the disputing parties, it shall assign a conciliator to bring about a settlement of the case.

(2) The Ministry may assign conciliators at the National/Regional and, when necessary, at the Wereda level.

Section 142. Duties and responsibilities of the conciliator. (1) The conciliator appointed by the Ministry shall endeavour to bring about a settlement on the following, and other similar matters of collective labour disputes:

(2) The conciliator shall endeavour to bring about a settlement by all reasonable means as may seem appropriate to that end.

(3) Whenever the conciliator fails to settle a labour dispute within 30 days, he shall report with detailed reasons thereof to the Ministry and shall serve a copy to the parties involved. Any party involved may submit the matter to the Labour Relations Board.

Section 143. Arbitration. (1) Notwithstanding the provisions of section 141 of this Proclamation, parties to a dispute may agree to submit their case to arbitrators or conciliators other than the Minister for settlement in accordance with the appropriate law.

(2) If the disputing parties fail to reach an agreement under subsection (1) of this section the party aggrieved may take the case to the Board or to the appropriate court.


CHAPTER IV. THE LABOUR RELATIONS BOARD

Section 144. Establishment. (1) One or more Labour Relations Boards may be established in each National/Regional Self-Government.

(2) Each Board shall be under the local authority responsible for the implementation of labour laws.

Section 145. Composition. (1) The Board shall consist of a chairman appointed by the Minister, four members, of whom two represent the trade unions and two represent employer's associations and also two alternatiate members, one from the workers' side and one from the employers' side.

(2) Employers' representatives shall be appointed from the most representative of employers' associations, and workers' representatives shall be appointed from the most representative of trade unions.

(3) The Minister shall assign a secretary and such other necessary staff to the Board.

(4) Members and alternate members of the Board shall serve on part-time basis without remuneration, provided, however, that the Minister may fix standard fees for attendances at meetings of the Board.

(5) Members and alternate members of the Board shall be appointed for a term of three (3) years; provided, however, that in making the initial appointments, the terms of one (1), two (2) and three (3) years, respectively, shall be specified so that in each subsequent year the terms of not more than one-third (1/3) of the members and alternate members then serving shall expire in any one calendar year.

(6) The Minister shall dismiss a member in case of negligence of duty or malfeasance in office and shall arrange for the appointment of a substitute for the remaining, unexpired term.

Section 146. Meetings. (1) In the absence of the Chairman another member of the Board designated by him as Acting Chairman shall preside over the meetings of the Board. Where no such member is designated, the member of the Board with the greatest seniority shall serve as Acting Chairman.

(2) In the absence of a member at any meeting of the Board, the Chairman may designate an alternate member to replace the absent member at such meetings. An alternate member so designated shall be deemed a member for the meeting for which he is designated.

(3) Three (3) members of the Board shall constitute a quorum at any meetings, provided, however, that a minimum of one member representing workers and one member representing employers shall be present.

(4) Decision of the Board shall be taken by a majority vote of the members present. In case of a tie, the Chairman shall have a casting vote.

(5) Each decision of the Board shall be signed by all members present.

(6) Minutes of meetings, after approval by the Board, shall be certified by the secretary and shall thereafter constutute the official record of the said meetings.

Section 147. Power of the Board. (1) The Board shall have the following power:

(2) Except in cases of emergency the person in charge of the premises shall be given reasonable advance notice before any entry in accordance with subsection 1(g) of this section.

(3) Orders and decisions of the Board shall be considered as those decided by civil courts of law.

Section 148. Rules of procedure. The Board shall issue its own rules of evidence and procedure.

Section 149. Hearings. (1) Before giving decisions, the Board shall notify the parties involved and afford them an opportunity to be heard. At least three (3) days advance notice of hearing shall be given to the parties and the notice shall contain the date, hour and place of hearing.

(2) If any of the parties or any other person properly summoned to appear at a hearing fails to appear at the fixed time and place, the Board may proceed with the hearing. If failure to appear was not the fault of the person involved the Board shall grant that person a second opportunity to appear before it.

(3) No appeal may be taken on the Board's decision given in accordance with subsection (2) of this section.

(4) All hearings of the Board shall be public unless the Chairman for good cause decides otherwise.

(5) The Board shall not be bound by the rules of evidence and procedure applicable to courts of law, but may inform itself in such manner as it thinks fit.

(6) Trade unions, employers associations and other parties notified to appear at the hearing may be represented by their duly authorized representatives or appointed legal counsel. The Board may limit the number of such representatives who may actively participate in a hearing on behalf of any single party.

Section 150. Consideration of matters. (1) The Board shall endeavour to settle by agreement labour disputes submitted to it, and to this end it shall employ and make use of all such means of conciliation as it deems appropriate.

(2) The Board may in appropriate circumstances consider not only the interest of the parties immediately concerned but also the interest of the community of which they are a part and the national interest and economy as well, and may in such circumstances grant a motion to intervene by the Government as amicus curiae.

(3) In reaching any decision, the Board shall take into account the substantial merits of the case, and need not follow strictly the principles of substantive law followed by civil court.

Section 151. Decisions. (1) The Board shall give decision within 30 days from the date on which the claim is lodged.

(2) Decisions of the Board shall be made in writing and signed by the Board members who concur therein. Dissenting opinions shall also be made in writing and signed by the member in dissent.

(3) In every decision of the Board the judgement shall contain the following:

(4) A copy of the decision of the Board shall be served upon the parties involved within five days from the date of decision.

Section 152. Effect of decisions. (1) Subject to article 154 of this Proclamation, each decision of the Board shall have immediate effect.

(2) Where a decision of the Board relates to working conditions, it shall be a term of the contract of employment between the employer and the worker to whom it applies, and the terms and conditions of employment to be observed and the contract shall be adjusted in accordance with its provisions.

Section 153. Finality of the Board's findings of fact. All findings of facts made by the Board shall be final and conclusive.

Section 154. Appeal. (1) In any labour dispute case an appeal may be taken to the Central High Court by an aggrieved party, within thirty (30) days after the decision has been read to, or served upon, the parties, whichever is earlier, solely on questions of law materially affecting a final board decision.

(2) If the court determines on appeal that the Board erred on a question of law and that the error materially affected the Board's decision, the court shall remand the matter to the Board for further action not inconsistent with the court's determination, with or without detailed court directions, but the court shall not itself reverse, modify or amend the Board's decision.

(3) The court shall make a decision and remand the case to the Board within thirty (30) days from the date of the appeal lodged in accordance with subsection 2 of this section.

Section 155. Offences against the Board. (1) Whoever, in the course of a Board inquiry, proceeding or hearing in any manner degrades, holds up to ridicule, threatens or disturbs the Board or any of its members in the discharge of their duties, shall be punishable with simple imprisonment not exceeding six (6) months, or with a fine not exceeding one thousand Birr (Birr 1,000).

(2) Where the offence described in subsection (1) of this section is not committed openly or during open hearing the punishment, except in more serious cases, shall be a fine not exceeding five hundred Birr (Birr 500).

(3) Proceedings of the Board shall be considered "quasi-judicial proceedings" and the Board "a competent judicial tribunal" for the purpose of section 442 of the Penal Code, and violations thereof shall be punishable as provided thereunder.

(4) The Board may summarily punish any person who committed any offence described in this section.

Section 156. Annual report. The Board shall submit to the Minister an annual report of its activities.


CHAPTER V. STRIKE AND LOCKOUT

Section 157. General. (1) Workers have the right to strike to protect their interest in the manner prescribed in this Proclamation.

(2) Employers have the right to lockout in the manner prescribed in this Proclamation.

(3) The provisions of subsections (1) and (2) of this section shall not apply to workers and employers of undertakings referred to in section 136(2) of this Proclamation.

Section 158. Conditions required for resorting to strike or lockout. Before initiating a strike or lockout partially or wholly the following steps shall have to be taken:

Section 159. Procedure for notice. (1) The notice under section 158 shall be given by the party initiating a strike or lockout to the other concerned party and to the representative of the Ministry in the region or the concerned government office.

(2) The notice specified in subsection (1) shall be served 10 days in advance of taking industrial action.

Section 160. Prohibition. (1) Without prejudice to the provision of subsection (1) of section 159, a strike or lockout initiated after a dispute has been referred to the Board or to the court and thirty (30) days have not elapsed before any order or decision is given by the Board or the prescribed period has elapsed before the court gives decisions is unlawful.

(2) It shall be unlawful to refuse to obey, or to take or continue to strike or to lockout against or in conflict with the final order or decision of the Board or of the court disposing in whole or in part of a labour dispute proceeding or to delay unwarrantedly in obeying such Board or court order or decision: provided, however, that the strike or lockout initiated, which is not against or in conflict with any such order or decision, but seeks to compel compliance therewith, shall not be deemed illegal or prohibited.

(3) It is prohibited to accompany a strike or lockout with violence, threats of physical force or with any act which is clearly and officially unlawful.


CHAPTER VI. COURT FEES

Section 161. Exemption from fees. (1) No court fees shall be charged in respect of cases submitted to conciliation and to the Labour Relations Board by any workers or trade union, employer or employers' associations in accordance with sections 141 and 147.

(2) No court fees shall be charged in respect of cases submitted by any worker to courts.


PART X. PERIOD OF LIMITATION AND PRIORITY OF CLAIMS

CHAPTER I. PERIOD OF LIMITATION

Section 162. Limitation. (1) Unless a specific time-limit is provided otherwise in this Proclamation or other relevant law, an action arising from an employment relationship shall be barred by limitation after one year from the date on which the claim becomes enforceable.

(2) Any claim to be reinstated by a worker arising from the unlawful termination of a contract of employment shall be barred after three months from the date of the termination of the contract of employment.

(3) Claims by a worker for payment of wages, overtime and other payments shall be barred after six months from the date they became due.

(4) Any claims by a worker or employer for any kind of payment shall be barred by limitation unless an action is brought within six months from the date of termination of the contract of employment.

(5) The relevant law shall be applicable to the period of limitation which is not provided for in this Proclamation.

Section 163. Calculation of period of limitation. (1) Unless otherwise specifically provided for in this Proclamation, the period of limitation shall begin to run from the day following the day when the right may be exercised.

(2) Whenever the last day of a period of limitation falls on a day other than a working day, it shall expire on the next working day.

Section 164. Interruption. A period of limitation shall be interrupted by:

Section 165. Waiver of limitation. Any party may waive his right to raise as a defence a period of limitation after its expiry, provided, however, that a waiver of such right made before the date of expiry of the period of limitation shall have no effect.

Section 166. Discretion of the competent authority. (1) The authority responsible for the determination of labour disputes may accept an action after the expiry of a period of limitation if it ascertains that the delay is due to force majeure provided, however, that unless the action is brought within ten days from the date the force majeure ceases to exist, it shall not be accepted.

(2) Without affecting the generality of the provisions of subsection (1) of this section, the following shall be good cause for disregarding a period of limitation:


CHAPTER II. PRIORITY OF CLAIMS

Section 167. Priority over other debts. Any claim of payment of a worker arising from an employment relationship shall have priority over other payments or debts.

Section 168. Procedure of payment of claims. (1) In the event that the undertaking is liquidated, execution officers or other persons authorized by law or the court to execute such liquidation shall have the duty to pay the claims of workers referred to in section 167 30 days following the decision of the competent authority.

(2) Where the said claims are not met within the time-limit set forth in subsection (1) of this section due to lack of funds, they shall be paid as soon as the necessary funds are available.

Section 169. Lien of home workers. Home workers may exercise a lien on goods in their possession that they have produced for an employer and such lien shall be of equal rank to their claims. Such measure shall be deemed an action taken to enforce the right provided for in section 167.


PART XI. ENFORCEMENT OF LABOUR LAW

CHAPTER I. LABOUR ADMINISTRATION

Section 170. Power of the Minister. (1) The Minister may issue directives necessary for the implementation of this Proclamation. He may in particular issue directives on the following:

(2) The Minister shall organize, coordinate, follow-up and execute the labour administration system by establishing an employment service, a labour inspection service and also a permanent advisory board which consists of members from the Ministry, employers' associations and trade unions.

Section 171. Advisory board. The Advisory Board is an organ established in accordance with subsection (2) of section 170 which shall study and examine matters concerning employment service, working conditions, the safety and health of workers, the labour laws in general and give advisory opinion to the Minister. Its duties and responsibilities shall be determined in the directives to be issued by the Minister.

Division 1. Employment service

Section 172. Employment service. Employment service shall include the following:

Section 173. Employment exchange. Employment labour exchange shall include the following:

Section 174. Employment of foreign nationals. (1) any foreigner may only be employed in any type of work in Ethiopia where he possesses a work permit given to him by the Ministry.

(2) A work permit shall be given for an employment in a specific type of work for three years and shall be renewed every year. However, the Ministry may vary the three years' limit as required.

(3) Where the Ministry ascertains that the foreigner is not required for the work, the work permit may be cancelled.

(4) The Ministry may charge service charges for the issuance, renewal or replacement of work permits.

Section 175. Employment of Ethiopian nationals abroad. An Ethiopian national may be employed outside of Ethiopia where the Ministry has obtained adequate assurances that his rights and dignity shall be respected in the country of employment.

Section 176. Prohibition. No person or entity shall perform employment exchange activities for consideration.

Division 2. Labour inspection service

Section 177. Labour Inspection Service. Labour Inspection Service shall include the following:

Section 178. Powers and duties of Labour Inspectors. (1) The Ministry shall assign Labour Inspectors who are authorized to carry out the responsibilities of follow-up and supervision of the inspection service.

(2) The Labour Inspectors shall have an identity card issued by the Minister bearing the official seal.

(3) The Labour Inspectors shall have the power to enter during any working hours without prior notice, any workplace which they may thing necessary to inspect in order to examine, test or inquire to ascertain observation of the provisions of section 177. In particular:

(4) Where a sample is taken in accordance with subsection (2)(d) of this section, the employer or his representative shall be informed in advance and shall have the right to be present.

Section 179. Measures to be taken by labour inspection. (1) Where the Labour Inspector observes that there is present, on or in the premises, plant, installations, machinery, equipment or material of any undertaking or in the working methods being followed therein any conditions which constitute a threat to the health, safety or welfare of the workers of such undertakings, he shall instruct the employer to correct such conditions within a given period of time.

(2) Upon failure of the employer to take such steps within the given time after receiving instructions in accordance with subsection (1) of this section, the labour inspector shall issue to the employer an order requiring:

(3) Where the labour inspector is in doubt about the technical or legal aspects of any particular case, he shall report thereon to the Minister requesting that appropriate decision be given and orders issued accordingly.

Section 180. Appeal. (1) Where the employer is dissatisfied with the order given in accordance with subsections (1) and (2) of section 179, he may appeal to the authority responsible to determine labour disputes or to the court within five working days, provided, however, that there shall not be a stay of execution where the order is given to avert an imminent danger pursuant to section 179(2)(b).

(2) The decision given on the appeal filed in accordance with subsection (1) of this section shall be final. Where the employer does not appeal within the time-limit, the decision shall be executed by the appellate court.

Section 181. Restriction on the functions of labour inspectors. (1) The labour inspectors shall perform their functions diligently and impartially. They shall take into account any reasonable suggestions given to them by employers and workers.

(2) No labour inspector shall at any time, whether during or after he left his employment, reveal to any other person any secrets of manufacturing, commercial or other working processes which may come to his attention in the course of performing his duties under this Proclamation.

(3) No labour inspector shall reveal to any person other than the concerned authority in the Ministry the sources of any complaint brought to his attention concerning a defect or breach of legal provision and, in particular, he shall not make any intimations to any employer or his representative that his inspection visit was made in response to a complaint filed with the Labour Inspection Service.

(4) A labour inspector shall in all cases notify the employer of his presence on the premises of the undertaking unless he considers that such notification may be prejudicial to the efficient performance of his duties.

(5) No inspector shall supervise any undertaking of which he is an owner or in which he has an interest.

(6) A labour inspector shall abstain from interference or involvement in labour disputes and collective bargaining as a conciliator or an arbitrator.

Section 182. Prohibition. The following acts shall be deemed to constitute obstruction of the labour inspector in the performance of his duties:


PART XII. PENALTY AND TRANSITORY PROVISIONS

CHAPTER I. PENALTY PROVISIONS

Section 183. General. Unless the provisions of the Penal Code provide more severe penalties, the penalties laid down in this Chapter shall be applicable.

Section 184. Offences by an employer. (1) An employer who:

shall be liable to a fine not exceeding five hundred Birr (Birr 500).

(2) An employer who:

shall be liable to a fine not exceeding one thousand Birr (Birr 1,000).

Section 185. Common offences. An employer or a trade union which:

shall be liable to a fine not exceeding one thousand and two hundred Birr (Birr 1,200) or where the offence is committed by a worker or the representatives of the employer, a fine not exceeding three hundred Birr (Birr 300).

Section 186. Violations of the provisions of this Proclamation. The Labour Inspector may submit cases involving offences committed in violation of the provisions of this Proclamation or regulations and directives issued hereunder to the authorities competent to determine labour disputes under Part IX of this Proclamation.

Section 187. Period of limitation. No criminal proceedings of any kind referred to in this Proclamation shall be instituted where one year has elapsed from the date on which the offence was committed.


CHAPTER II. TRANSITORY PROVISIONS

Section 188. Collective agreements. Subject to section 133, collective agreements which are in force prior to the coming into force of this Proclamation shall continue to be effective unless they are amended or replaced in accordance with the provisions of this Proclamation.

Section 189. Trade unions. Trade unions established in accordance with Proclamation No. 222/19821 shall continue to be legal persons until they are formed in accordance with the provisions of this Proclamation.

Section 190. Labour disputes. Labour disputes pending before the Ministry or before any authority competent to settle labour disputes prior to the coming into force of this Proclamation shall be settled in accordance with the law and procedure which were in force before this Proclamation came into effect.

Section 191. Determination of degree of disablement. Until the schedule determining the degree of disablement is issued pursuant to section 102(1) of this Proclamation the medical board shall continue its functions as usual.

Section 192. Repeal. (1) The following are hereby repealed:

(2) No law, regulation, directive or decision shall, in so far as it is inconsistent with this Proclamation, have force and effect in respect of matters provided for in this Proclamation.

Section 193. Effective date. This Proclamation shall come into force on the date of its publication in the Negarit Gazeta.



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