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Ethiopia - Minimum Wages - 2011


LAST UPDATE

25 February 2011

SOURCES


Name of Act

Labour Proclamation No. 377/2003 (Federal Negarit Gazeta, No 12 dated 26 February 2004, pp2453-2504)
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Name of Act

Labour (Amendment) Proclamation No. 466/2005 (Federal Negarit Gazeta No 56 dated 30 June 2005 pp3176-3177)
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Name of Act

Labour (Amendment) Proclamation No. 494/2006 (Federal Negarit Gazeta No.30 dated 29 June 2006 pp3422-3424)
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Name of Act

Civil Code dated 5 May 1960 (Negarit Gazeta, 5 May 1960, No. 2 Extraordinary, pp13-33)
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LEGAL DEFINITIONS


Employee/worker

’Worker’ is defined to mean a person who has an employment relationship with an employer in accordance with Article 4 of the Labour Proclamation 2003.
Labour Proclamation 2003 §2(3)
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Employer

’Employer’ is defined to mean a person or an undertaking who employs one or more persons in accordance with Article 4 of the Labour Proclamation 2003.
Labour Proclamation 2003 §2(1)
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Wage

’Wages’ is defined to mean 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. The following are expressly excluded:
(a) overtime pay;
(b) amount received by way of per-diems, hardship allowances, transport allownaces, transfer expenses, and similar allowances payable to the worker on the occasion of travel or change of residence;
(c) bonus;
(d) commission;
(e) other incentives paid for additional work results;
(f) service charge received from customers.
Labour Proclamation 2003 §53

MINIMUM WAGE FIXING

The Labour Proclamation 2003 does not set a process for minimum wage fixing. It rather contemplates that minimum wage rates will be determined by a collective agreement or contract of employment.
Labour Proclamation 2003 §129
Civil Code 1960 §2535

Enforcement mechanisms

Where parties notify the Ministry of a dispute regarding wages and other benefits, it shall be referred to a government-appointed conciliator. The conciliator is charged with endeavouring to bring about a settlement of such disputes by all reasonable means. If the dispute is not settled within 30 days, the conciliator shall report to the Ministry and shall serve a copy of the report to the parties involved.

Parties may take a dispute to other arbitrators or conciliators if agreed between themselves.

The adhoc Labour Relation Board is empowered to hear disputes regarding wages and other benefits relating to essential public services undertakings.

Claims by a worker for payment of wages, overtime and other payments shall be barred after six months from the date it became due.
Labour Proclamation 2003 §§136(2), 141, 142, 144(2), 147(2), 162(3)

Labour inspection

The Labour Inspection Service is charged with ensuring the implementation of the provisions of the Labour Proclamation 2003, registered collective agreements and orders given by authorities responsible to determine labour disputes.
Labour Proclamation 2003 §177(1)

Results generated on: 21st October 2014 at 15:37:57.
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