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ETHIOPIAN LAW GUIDE · LABOUR AND EMPLOYMENT

Ethiopian labour law: a guide to Proclamation No. 1156/2019

Private-sector employment in Ethiopia is governed mainly by the Labour Proclamation No. 1156/2019. It covers employment contracts and their termination, wages, working hours, leave, the working conditions of women and young workers, occupational safety and health, trade unions and collective agreements, and the settlement of labour disputes. Civil servants and some other groups are governed by separate laws.

Checked against the cited texts on Legal information, not legal advice

KEY POINTS

  • Article 5: unless another law says otherwise, an employment contract does not need a special form.
  • Article 7: if the contract is not in writing, the employer must give the worker a signed letter with the contract’s particulars within 15 days.
  • Article 11(3): an agreed probation period must be in writing and cannot exceed 60 working days.
  • Article 3(2): the Proclamation does not apply to managerial employees, personal-service contracts, or employees such as judges, prosecutors and state administration staff governed by special laws.

Who the Labour Proclamation covers

Article 3 applies the Proclamation to employment relations based on a contract of employment between a worker and an employer, including recruitment. It excludes, among others, managerial employees, contracts of personal service, members of the armed forces and police, employees of state administration, judges, prosecutors and others governed by special laws, and people who work for consideration at their own business or professional responsibility.

Article 42 of the Constitution protects the rights of labour, including the right of workers to form trade unions and to bargain collectively.

Forming the employment contract

Under Article 4, a contract of employment exists where a person agrees to perform work for and under the authority of an employer, for a definite or indefinite period or a piece of work, in return for a wage. The contract must specify the type of employment, the place of work, the wage and how it is calculated and paid, and the duration of the contract. It may not set conditions less favourable than those provided by law, a collective agreement or work rules.

No special form is required (Article 5). A written contract must state the employer’s name and address, the worker’s name, age, address and any work card number, the agreed terms and both signatures (Article 6). Where there is no written contract, Article 7 requires the employer to give the worker a signed letter containing those particulars within 15 days.

What else the Proclamation regulates

Its later parts deal with the termination of employment, special contracts such as home work, the determination and payment of wages, hours of work, weekly rest and public holidays, annual and other leave, the working conditions of women and young workers, occupational safety, health and employment injuries, trade unions and employers’ associations, collective agreements, and labour disputes, including labour courts, the labour relations board, strikes and lock-outs.

Pensions for private-sector employees are governed separately by the Private Organization Employees’ Pension Proclamation No. 1268/2022.

Frequently asked questions

Does an employment contract in Ethiopia have to be in writing?

Not necessarily. Article 5 of the Labour Proclamation No. 1156/2019 says no special form is required unless another law provides otherwise. If there is no written contract, Article 7 requires the employer to give the worker a written, signed letter with the contract’s particulars within 15 days.

How long can a probation period be under Ethiopian labour law?

Under Article 11(3) of Proclamation No. 1156/2019, an agreed probation period must be in writing and may not exceed 60 working days from the first day of employment. A worker re-employed by the same employer for the same job is not subject to probation (Article 11(2)).

Does the Labour Proclamation apply to civil servants?

No. Article 3(2) excludes employees of state administration, judges, prosecutors, members of the armed forces and police, and others whose employment is governed by special laws.

Which law governs private-sector pensions in Ethiopia?

The Private Organization Employees’ Pension Proclamation No. 1268/2022.

This page is general legal information about Ethiopian law, prepared from the published texts it cites. It is not legal advice and does not confirm whether a provision is still in force or has been amended. Federal laws are published in the Federal Negarit Gazeta in Amharic and English, and the Amharic version prevails where they differ. Consult a qualified Ethiopian lawyer about your situation.

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