MBA Department

Course Title: Human Resource Management

Assignment on Ethiopian Labor Proclamation
Course Instructor: Abera Demsis (PhD)
Course Code: MBA 751

SUBMITED BY: ID NO.

AWLACHEW MULUGETA-------------------------MBA(2)005/14

SECTION ------------------------------------------------------“A”

DATE MAY, 2022

 LABOUR PROCLAMATION IN ETHIOPIA 1156-2019
The labor proclamation in Ethiopia shall be applicable to employment relations based on a
contract of employment that exists between a worker and an employer including the recruitment
process.

PART ONE:-Definition

This section provides general terminologies and definitions of different terms related to labor in
Ethiopia as well as the scope of application of the labor proclamation. The labor proclamation is
applicable to the conditions stated in the introduction.

PART TWO:-Employment Relations

 Contract employment
This provides insights into the formation of the contract of employment, duration of the contract
of employment, Obligations of the parties, Modification of contract of employment, Temporary
suspension of rights, and obligations arising from the contract of employment

 Termination of employment relations

This section contains information on termination of the contract of employment by the
operations of the law or by agreement, termination of the contract of employment upon the
initiation of the parties. This section is further subdivided into the termination of the  contract of
employment by the employer and by the worker

 Common provisions with respect to the termination of the contract of

employment
This part provides insights on notice on the termination of a contract of employment, payment of
wages, and other payments on termination of the contract of employment as well as Severance
pay and Compensation

 Consequences of unlawful termination of the contract of employment

Under this section, we understand the general application as well as the reinstatement of
compensation of a worker in the case of unlawful termination, the exceptions to this regulation,
and the liability of the worker to pay compensation.

Special Contracts
Under this section,we find information on the homework contract and contract of apprenticeship.

PART THREE:-Wages

Under this section, you’ll find insights in reference to the determination of wages, mode, and
execution of payment and detailed information regarding the two.
 PART FOUR: Hours of work, weekly rest, and public holidays

This section will provide us with information regarding the normal hours of work, Weekly rest,
and public holidays.

PART FIVE:-Leave

In this part, we see about annual leave, special leaves as well as sick leave.

PART SIX:-Working conditions of women and young workers

Here we find insights about the working conditions of women and also young workers.

PART SEVEN:-Occupational safety and health and working environment

This provides you with information such as preventive measures, and occupational injuries
which are further divided into the subsections of liability and the degree of disablement. Another
note is the benefits in the case of employment injuries which are also subdivided into the general
incentives, the medical services, and the various kinds of cash benefits.

PART EIGHT:-Collective relations

Under this part, we gain insights into the trade unions’ and employers’ associations. In addition
to the definition, we find insights into the conditions of validity and scope of the collective
agreement.

PART NINE:-Labor dispute

This includes insight about general situations, the labor courts, and the alternative disputer
settlement mechanism pertaining to labor issues. In addition to this, you’ll find information about
the labor relations board and lastly the exemption fees.

PART TEN:-Period of limitation and priority claims

Under this section, we have detailed information about the period of limitation and the priority of
claims.

PART ELEVEN :-Enforcement of labor law

Under this section, we find information about the labor administration. This is further subdivided
into the employment service and the labor inspection service.

PART TWELVE :-Administrative And Miscellaneous Provisions

Here you’ll find insights about administrative measures and miscellaneous provisions.
2,PRIVATE EMPLOYMENT AGENCY PROCLAMATION
Proclamation No. 104/1998

Definitions:-Private Employment Agency means any person, independent of government bodies,

which performs one or two of the following employment services without directly or indirectly
receiving payments from the worker;

Scope of Application

-The purpose of this proclamation, an Ethiopian employed to work abroad for personal services
of non-profit making purposes.

-Any Ethiopian may be allowed to go and work abroad only through a private employment
agency unless the Minister permits the direct recruitment by an employer.

.-This Proclamation shall not relieve any private employment agency of its obligations imposed
by other laws.

Requirement of License

Any person who wishes to operate a private employment agency shall have to obtain a license
from the following authorities;

-Regional Authority responsible for the implementation of labour laws, if the employment
service is confined within that region;

-From the Ministry if the employment service is to be rendered in two or more regions;

-From the Ministry if the employment service is to hire and send abroad an Ethiopian worker to a
third party.

Condition required to obtain a license

Any person who applies to operate a private employment agency in accordance with this
Proclamation shall fulfill the following:

-Business registration for the operation of a private employment service;

-If he is providing a service of hiring and sending a worker abroad, he present a document that
shows he has fulfilled the obligations of guarantee specified

-pay a license fee

-present chart of organizational structure

-Notify the address of his office and of his representative;

-Present other relevant documents

Issuance of License

The competent authority shall, upon the fulfillment of the required conditions to obtain a license
under this Proclamation, issue a license to the applicant.

Disqualification

A person punished for his engagement in an illegal employment activity shall not qualify for a
license to operate a private employment agency. 

Validity of License

-A license issued valid for two years subject to renewal every year.

Opening of Office

- Must open an office for the operation of its activities.

-shall have a branch office or a representative in the country where he sends the worker.

Displaying of License

-Shall display the license issued to him in visible to other people.

Transfer of Office

-Notify the competent authority prior to transferring his office to another place.

Obligation of a Private Employment Agency

-Oligations to:

-To prepare and submit recruitment and registration of job-seekers;

-To pay the required fee

-Nnotify prior to closing his office

-submit the contract of employment to the competent authority and etc…

Suspension or Cancellation of License

The competent authority may suspend or cancel a license on the following grounds:

- If license has been issued to the private employment agency based on the deceitful document;

-If received payment in cash or in-kind from the worker; or

-If violated proclamation or other laws.

Requirement of Guarantee

1) Any private employment agency which sends a worker abroad for work in deposits the
following amount of money in cash or its equivalent

- For up to 500 workers 30,000 US dollars or its equivalent in Ethiopian birr;

-For 500 -1000 workers 40,000 US dollars or its equivalent in Ethiopian birr;

-For >1001 workers 50,000 US dollar or its equivalent Ethiopian in Birr.

Protection of the Worker’s Right

-Minimum working conditions

-The Authority responsible to ensure the rights, safety and dignity of the worker.

Inspection

-The power of authority

-Obligation of Authority

Responsibility

-Responsiblaity of both Authority and third party

Penalty

-About violations of Proclamation and regulation and directives

License Fees

The amount of fees required for a license issued in accordance with this Proclamation shall be
determined by the regulations of the Council of Ministers.

Amendment

-Amendment of Article 176 of the Labour proclamation No. 42/1993

176 Prohibition

-No persons or entity shall perform employment services for consideration from a worker.

Power to Issue Directives

-The Minister may issue directives necessary for the effective implementation of this
Proclamation.

Effective Date

-This Proclamation shall enter into force as of the 5th day of March, 1998.

3-THE RIGHTS OF DISABLED PERSONS TO EMPLOYMENT

The Rights of Disabled Persons to Employment Proclamation No. 101/1994

It is evident that there are many people within that society suffering from disabilities due to
natural and manmade causes.it has been realized that disabled persons have got fewer job
opportunities, despite the fact that some of them have acquired the appropriate training and skills
through their own efforts and the assistance of the Government and humanitarian organizations;

It has become necessary to stop such discrimination and protect the rights of disabled persons to
compete for and get employment on the basis of their qualifications;

-Definitions: According to Proclamation No.101/1994 A disabled person means a person who is

unable to see hear or speak or suffering from injuries to his limbs or from mental retardation, due
to natural or man-made causes; provided, however, that the term does not include persons who
are alcoholics, drug addicts and those with psychological problems due to socially deviant
behaviors

Protection of the Rights of Disabled Persons

1. A disabled person has the right to compete and to be selected for:

- Vacant post

- A training program.

-No selection criteria shall refer to the disabilities unless the nature of the work dictates
otherwise.

-The Right to get the salary and other benefits of the position he occupies.

-To get equipment and materials necessary to carry out his duties or to pursue his training.

4. Vacancies to be Reserved for Disabled Persons

- Posts suitable for disabled persons shall be identified and reserved from among vacancies
created in offices and undertakings.

- Only disabled persons may compete for posts reserved pursuant to this Article.
5. Responsibilities of Disabled Workers

-Assume full responsibility in discharging the functions of his position.

-Cannot use disability as a defense in case of failure or fault in discharging his duties.

6. Implementation of the Proclamation

-Powers to issue directives necessary for the proper implementation of this Proclamation.

- Any disabled person whose rights are affected because of non-compliance with the provisions
of this Proclamation and regulations and directives issued hereunder, may lodge his grievance to
the organ empowered by law to hear labor disputes.

4.FEDERAL CIVIL SERVANTS PROCLAMATION

SECTION ONE:

General

 Short title: Federal Civil Servants Proclamation No.1064/2017

 Definitions: - civil servant” means a person employed by a federal government
institution.
 Gender Expression: Any expression in the masculine gender shall also include the
feminine gender
 Scope of Application: applicable to all offices and employees falling under the
definitions of government institution and civil servants

SECTION TWO

Organizational Structure, Job Evaluation, Salary Scale and Benefit

 Organizational Structure of government institution

 Job Evaluation
 Salary Scale
 Equal Pay for Equal Work
 Payment of Salary
 Allowance

SECTIONTHRE

Human Resource Planning, Deployment and Performance Evaluation

SUB- SECTION ONE

Recruitment and Selection

 Human Resource Planning
 Eligibility to Join Government Institution and Competence Certification System
 Recruitment and Selection
 Ineligibility
 Employment of Foreigners: a person who is not an Ethiopian national may not be
eligible to be a civil servant
 Vacancy Announcement and Recruitment Procedures
 Oath of Fidelity
 Determination of Starting Salary
 Probation
 Permanent Appointment
 Temporary Employment
 Outsourcing
 Joint Appointment

SUB- SECTION TWO

PROMOTION

 Objectives: Promotion shall be given for the purpose of executing works by

competent employees, enhancing the performance of government institutions and
for motivating employees
 Selection for Promotion: shall present certificate of competence

: Any civil servant who has completed his probation

period may compete for promotion

SUB- SECTION THREE

Transfer and Redeployment

 Internal Transfer: transfer a civil servant to another similar position

 Acting Assignment: civil servant may be assigned to a higher position in an
acting capacity for not more than a year
 Transfer from another Government Institution: transfer a civil servant to a
similar position of equal grade and salary from another government institution by
notifying the Ministry
 Secondment: be seconded to another government or regional institution or public
enterprise or nongovernmental organizations to perform a specific duty for a
period not exceeding one year.
 Redeployment:
 SUB- SECTION FOUR

Performance Evaluation

 Performance Evaluation: effectively discharge his duties, identify

his strength and weakness, provide incentives based on results&
decisions based on facts
 Salary Increment and Incentives

SECTION FOUR

SUB- SECTION ONE

Working Hours and Leaves

 Working Hours: Regular work hours shall not exceed 39 hours a week
 Office Hour: office hours begin and ends stated
 Overtime Work: worked overtime is entitled to compensatory
Leave or overtime pay based on his preference
 Public Holidays and Weekly Rest Day

SUB- SECTION TWO

Leave

 Objectives: The purpose of annual leave is to enable a civil servant get rest
and resume work with renewed strength
 Duration of Annual Leave: shall be entitled to annual leave of 20 working
days for his first year of service.
 Granting of Annual Leave
 Postponement of Annual Leave
 Unused Annual Leave
 Maternity Leave
 Sick Leave
 Medical Certificate
 Leave for Personal Matters
 Special Leave With Pay
 Special Leave without Pay

SECTION FIVE

Conditions of Work Applicable To Members of the Society Deserving Affirmative Action

  Conditions Of Work Applicable To Female Civil Servants:
affirmative actions that enable female civil servants to improve their
competence and to assume decision making positions
 Conditions of Work Applicable to Persons with Disabilities: shall be
entitled to affirmative actions in recruitment, promotion, transfer,
redeployment, education and training
 Conditions of Work Applicable to Minority Nationalities
 Issuance of Directives

SECTION SIX

Occupational Safety and Health

 Objectives and Applicability: maintain the safety and health of civil

servants and enhance their productivity, improve and keep suitable work
place and safety and health of civil servants, guarantee high level
performance social wellbeing.
 Employment Injury: employment accident or occupational disease.
 Safety Measures
 Disability: Temporary, Permanent Partial Disability, Permanent Total
Disability
 Medical Benefits and Injury Leave: shall cover the expenses for the
locally provided medical treatments to a civil servant who has sustained
employment injury
 Disability Pension and Gratuity: disability due to employment injury
shall be entitled to the rights and benefits provide
 Tax Exemption
 Claims of Compensation from Third Party

SECTIONSEVEN

Managing Information Profiles of Civil Servants

 Personnel Records: shall keep relevant personnel data organized in a

modern way regarding each civil servant or temporary employee
 The Responsibility of Organizing Profile of Civil Servants:
implement uniform human management information System, organize
civil servants data & statistical data preparation

SECTION EIGHT

Rights and Obligations

  Responsibilities of Government Institutions: fully aware of government
policies, strategies and laws, working environment is free from any form of
religious activities, provide job description, proved necessary work appliances
& create conducive working environment to the health and safety of civil
servants
 Obligations of Civil Servants: loyal, effectively execute the laws; serve the
public and the country without having any bias etc…
 Extent of Liability: liable for loss is caused by his negligence or intentional
act

SECTION NINE

Disciplinary Measures And Grievance Handling

Sub-Section One

Disciplinary Measures

 Objective Of Disciplinary Penalty: objective of penalty was regret and

learn from his mistakes and to rehabilitate him so as to become ethically
sound
 Types and Classification of Disciplinary Penalties
 Offences Entailing Rigorous Disciplinary Penalties
 Taking Disciplinary Measures
 Suspension from Duty
 Period of Limitation

Sub-Section Two

Grievance Handling Procedure

 Grievance: grievance means a complaint of a civil servant that could

not be resolved through discussion conducted with the civil servant’s
immediate supervisor or with the concerned officer and should be
addressed through a formal review procedure
 Objectives of Grievance Handling Procedure: to provide
expeditious remedy for grievances, rectify mistakes and weaknesses
and to provide equitable and fair treatment.
 Establishment of Grievance Handling Committee
 Duties of Grievance Handling Committee
 Administrative Decision
SECTION TEN

Civil Servants Administrative Tribunal

 Establishment: The Civil Servants Administrative Tribunal hereinafter the

Administrative Tribunal is hereby established.
 Powers and Procedures of the Administrative Tribunal: hear cases
brought to it and render orders and decisions, hear an appeal brought by a
civil servant
 Jurisdiction of the Administrative Tribunal: unlawful suspension
Service, rigorous disciplinary penalty, unlawful attachment or deduction of
salary etc…
 Execution of Decision: Shall have the obligation to immediately execute a
decision given by the Administrative Tribunal

SECTION ELEVN

Termination and Extension of Service

 Resignation: Any civil servant may, by giving a one month prior notice,
resign at any time; provided, however, that the government institution may
release him prior to the end of the notice period if it can easily replace him.
 Termination Due to Illness: he shall be deemed unfit for service and his
service shall be terminated.
 Termination on Grounds of Inefficiency
 Termination due to Force Majeure Situation
 Retrenchment
 Termination of Service on Disciplinary Grounds
 Retirement
 Termination on the Ground of Death
 Certificate of Service
 Severance Pay
 Extension of Service

SECTION TWELVE

Miscellaneous Provisions

 Nullification Of Appointment, Promotion, Salary Increment And Other Benefit

 Delegation of Power
 Supervision of Implementation of the Proclamation
 Power to Issue Regulations and Directives
  Transitory Provisions
 Repealed Laws
 Effective Date: This Proclamation shall come in to force upon publication in
the Federal Negarit Gazeta

5,PRIVATE ORGANIZATION EMPLOYEES’ PENSION IN ETHIOPIA

Private Organization Employees’ Pension Proclamation No. 715/2011 (and Amendment
Proclamation No. 908/2015)

 There is a separate proclamation that provides a pension for private organization

employees in Ethiopia.

 Proclamation No. 715/2011, hereinafter the Proclamation, establishes the private

organization employee’s pension scheme which means a system established to pay
benefits and provide service to employees. The Pension Fund is administered by the
Private Organization
 -Retirement age of an employee 60 years
 -Benefits available under the proclamation are the retirement pension, invalidity pension,
incapacity pension, or survivors’ pension and gratuity.
 -Applicable which are salaried persons employed in a private organization for not less
than 45 days However, it doesn’t include employees engaged in the cotton collection,
sugar cane cuttand other similar works regularly repeated in the course of the year.
 -Before coming into force of the proclamation, may either decide to continue to benefit
from the pension scheme or the provident fund or agree to be covered in the current
scheme.
 -Employees of religious organizations and political organizations and persons engaged in
the informal sector can be, upon their consent, covered by the Proclamation.
 -The Proclamation doesn’t apply for domestic workers, and employees of governmental,
international organizations and foreign diplomatic missions.

(Article 10 of the Proclamation)

 -The contributions payable, 11 % by the employer and 7 % by the employee, a total of

18%.

Total contribution is raised step by step from 12% in the first year to 18% in the fourth year as
the following table indicates:

Yea By the Employer By the employee Total

r
1st 7% 5% 12%

2nd 8% 6% 14%

3rd 9% ≥3rd Year =7% 16%

4th ≥4th year=11% 18%

(Article 11 of the Proclamation)

 Obligation of Private organization

-Deducts from employees and pay together with its own contributions to the Pension
Fund monthly.
-Contribution payment period
-Failure deducted & contributions of its employees from their salaries are liable for
payment of the same.
-If Fail of payment occurred Agency or the delegated body has the power to cause the
deduction of the arrear contributions and additional payments from the money deposited
in its bank account.
-It is prohibited to pension contributions for payment of service charges, money transfer
charges or debt or for any other purpose.

MAY, 2022