ETHIOPIA Sample CBA Model created by WageIndicator Foundation

COLLECTIVE BARGAINING AGREEMENT BETWEEN: (name of the Company) AND (name of the Trade Union)

This Collective Agreement is signed on (dd/mm/yyyy) by and between (name of the Company), established in accordance with Ethiopian Laws hereinafter referred as 'The Undertaking'


The undertaking established in accordance with the Labor Proclamation No. 377/2003 (as amended), hereinafter referred to as ' The Union'.

Short Title: This Collective Agreement shall be shortly cited as "The Agreement".

Unless the content requires otherwise, in this Collective Agreement terms are defined as follows:-

A. ”Proclamation" means the Labor Proclamations No. 377/2003, No. 494/2006 and the amendments thereto.

B. Internal Rules' or 'Company Policy of the Undertaking' means the working rules and internal policies issued both for administrative and operations that the Undertaking issues from time to time to make provision to determine working schedules , rest/leave periods, salary payment, performance measurement methods /system, Occupational safety and Health Protection measures accident prevention, disciplinary rules and their implementation as well as other rules on terms of employment and working conditions in accordance with the Proclamation and other relevant laws;

C. "Employee" means in line with Article 4 of the Labor Proclamation No. 377/2003 any physical person who has an employment relation with the Undertaking for indefinite period based on a contract of employment and it does not include the members of the Management excluded from the scope of this Agreement per Article 2.1.1 of this Agreement;

D. "The Undertaking" includes its Legal Authorities, agents, officials, Divisions and branches.

E. "Union" means the duly registered and accredited Trade Union and includes the lawful executives/leaders of the Union;

F. ”Employment Contract" includes the employment letter issued for an employee who is covered under this Collective Agreement at the time of his employment, his job description and its amendments and comprises this agreement;

G. ”Agreement" means this Collective Agreement and its duly registered amendments and as the case may be it includes the provisions that the Undertaking and the Union issue with their mutual agreement;

H. "Plan" means the annual plan and long term strategic plan and vision of the Undertaking;

I. "Premises of the Undertaking" means the buildings, the machine, vehicles, and land owned by the undertaking, work places and places where employees will be stationed due to the nature of their work or where the Undertaking works or places of work or any owned or rented property or place that the Undertaking provides for the employees through ownership or rent/lease;

J. "Sexual Harassment" means any condition/act done or attempted against a workmate or customer of the Undertaking in the premises of the Undertaking or any place of work in a manner that impacts work of the employee or any physical or verbal or symbolic deeds that harass or convey sexually inducing messages and includes all other similar acts as prohibited by the relevant laws of the land.

Chapter One General Provisions

Article 1: Objectives of the Collective Agreement


The objective of this Collective Agreement is in order to ensure that the industrial peace is maintained through fostering long lasting & smooth relationship among the Undertaking, its employees and the Labor Union and to avail better and conducive working conditions accepted and mutually agreed upon both by the Undertaking and the employees.

The Union understands that the Undertaking is working in a stiff competition and highly regulated environment that it needs to establish working rules and procedures that enable it to strengthen its existing capacity in such highly competitive industry and remain competitive. Accordingly, they have also agreed to work together in order to achieve such objective of the Undertaking.


Without prejudice to the generality of the expression in Article 1.1. above, the Agreement shall have the following specific objectives:

1.2.1. In order that industrial peace is ensured in the Undertaking, that sound business relations are conducted in good faith, efforts are exerted so that employees beware of their rights and obligations in order to discharge their obligations in unity by strengthening their ties.

1.2.2. To enable the employee discharge his duties in compliance with the accepted code of conduct, ethical rules , to reinforce his will and dedication to work, to enhance his productivity and to enable both the Undertaking and the Labor Union encourage and appreciate the employee;

1.2.3. Knowing that the wellbeing of its employees is the essence of the Undertaking, is existence and profitability, to protect his health, to develop his intellectual and physical wellbeing, to make his livelihood secured by providing a reasonable remuneration and compensation for his work that ensures his sound conditions, to assert his basic human rights and to enable him to take part in the Undertaking's Management;

1.2.4. To ensure the continued existence of the Undertaking and to enhance its standard in the growing market competition.

1.2.5 To enable the service of the Undertaking to be safe and efficient, secured/staff and competent; and

1.2.6 To capacitate the Undertaking to provide efficient, integrated and modern service to its customers and to establish conducive working and service providing conditions to achieve the basic objectives for which the Undertaking is established.

Article 2 Status and Scope of Applicability of the Agreement


Employees Covered by the Agreement

2.1.1 This Collective Agreement shall be applicable to and binding upon all employees of the Undertaking employed for indefinite period excluding 'Management Employees' whose positions are listed in (Appendix …….) of this Agreement and so defined under the Proclamation.

2.1.2 .This Agreement shall be considered as the integral part of the employment contract concluded individually and collectively between the Undertaking and those employees specified under Sub-article (1) above who are employed by the Undertaking for indefinite period.

What the law says about the rights of Trade Unions in Ethiopia:

Constitution and labor law provide for freedom of association and allow workers and employers to join and form unions. This right is regulated by the labor Proclamation. Trade union is a worker's organization that protects the rights and interests of the workers and represents them in collective bargaining and labor dispute. Union must ensure that laws, regulations, directives and statements are known to, be observed and implemented by members. Union members should participate actively during preparation and amendments of laws and regulations.

Article 3 Rights and Duties of the Parties


Rights & Duties of the Undertaking

3.1.1 Prerogatives of the Undertaking:

1. Except as is otherwise clearly specified in this Collective Agreement, in addition to the rights that are reserved to it under the relevant laws of the country and other relevant rules and regulations, the Undertaking reserves all the rights to plan, direct, control, and manage its Operations , hire, administer, , promote, transfer, demote, discipline and lay off, or suspend and dismiss its employees whenever it is found necessary and in accordance with the relevant laws through its competent officials, authorities or agents or executives and managerial employees.

2. The right to determine, issue, and establish, modify, assign, change or revoke its policies and procedures and internal rules and regulations, the right to determine the amount of salary or any other payments is reserved to the Undertaking. However, where the Union believes that the changes or proposed changes are against the rights and benefits of the employees explicitly specified in this Agreement, the Union may discuss with the Undertaking.

3.1.2 Duties of the Undertaking:

In addition to the duties stipulated by law, the Undertaking shall have the following duties: -

1. To provide equipment/tools that are required by and for the employee's work, necessary raw materials and safety equipment;

2. To observe and abide by the provisions of this Collective Agreement, its work rules and the internal regulations and policies that it issues from time to time in accordance with the law;

3. To take all the necessary measures to protect the safety and occupational health of its employees in order to prevent them from occupational accidents and to follow the standards and directives issued by the competent/relevant authorities in relation to such measures;

4. To determine job title/grade and salary scale for each position and to design and issue job description to the employees periodically;

5. To ensure that the provisions contained in the internal rules and policies of the Undertaking don't affect the rights, benefits and working conditions reserved for the employee by this Collective Agreement or the Proclamations as well as to follow and observe those stipulated in this Agreement, the Proclamation and other labor laws and regulations;

6. To provide or replace the following safety equipment, to the concerned employees as appropriate considering the nature of the work and based on the Safety Management Manual to be established and revised from time to time by the Undertaking;

The Undertaking shall meet all the necessary safety measures to prevent work related hazard to health.


A .Employees’ frequently exposed to rain, as a result of the nature of their work, will be provided with rain coats and hats; those exposed occasionally will be provided on loan basis.

B. Gloves and safety shoes will be provided where it is mandatory because of the working conditions.

C. The Undertaking shall provide whatever is necessary to prevent hazards to health associated with the work.

D. The Undertaking shall have audiometric and radiation check-ups every year for the concerned employees exposed to such risks as a result of the nature of their work or as necessary.

7. To provide uniforms free of charge to employees required to wear uniforms in accordance with the Undertaking's internal regulations or policy;

8. To bear the cost for laundry of coveralls and shop coats so long as the employee keeps the coverall and shop coat provided to him by the Undertaking;

9. When training is required to introduce new and modern technology, to provide the necessary training to employees related to the work and/or employees who give training to others;

10. To provide Safety equipment which are not included in Article 3.1.2 (6) according to the Company's Safety Management Policy Manuals;

11. To deduct Union membership dues from employee's monthly salary and transfer same to the account of the Union when so authorized in writing by the employee. The Undertaking shall cease making such deduction and shall thereafter pay the employee's salary to him in full only when so requested by the employee or through the Union;

12. To prepare appropriate places and notice boards on which the Union can post its lawful notices, bulletins, and slogans;

13. To give 15 days’ advance notice to the concerned employee regarding any deduction from his salary except where the deduction is to be made pursuant to Court order or at the request of the employee himself;

14. To avail office necessary for the use of the Union;

15. The Undertaking shall not:-

A. Permit any act which directly or indirectly jeopardizes or restricts an employee's legal rights, privileges and benefits;

B. Take any reprisals against employees or their representatives preventing them from requesting or having requested the help from of the competent responsible authorities in securing their legal rights, privileges, benefits or any interests;

C .Interfere with or restrain, coerce or discriminate against employees or Officers of the Union because of membership in or for engaging in lawful activities on behalf of the Union;

D. Charge and/ or penalize an employee more than once for the same offence;

E. Impose more than one disciplinary measure for those offences committed to achieve one purpose;

F. Charge employees in group for any offence, unless it can be proved that the group committed the offence;

G. Resort to such actions as physical attack, assault, insult or threat through its officers;

H. Transfer an employee from section to section with the intention of hindering or preventing his future progress;

I. Issue or pass orders or instructions which are outside of the employee's normal duties and which are not within his capabilities or such orders of instructions in violation of the Undertaking's written policies or regulations or issue orders which are imminently dangerous to life, body or the property of the Undertaking or of its employees.

J. Commission of the following acts by the Undertaking is unlawful:

a.To impede in any manner workers from enforcing their rights or take actions against them for reasons related to enforcement of their rights.

b.To commit acts contrary to the provisions of this Collective Agreement or of the Proclamation.

c.To compel a worker to carry out his duties under conditions that are likely to cause hazard on his life.

d.To discriminate between workers on the ground of ethnicity, sex, color, religion, political orientation and similar other reasons.

16. The Undertaking shall distribute the text of Collective agreement for its employees to help them to be well aware of their rights and duties under the Agreement.


Rights and Duties of Employees

3.2.1 Rights Reserved for Employees:-

Save to the rights outlined under the law, employees of the Undertaking shall have the following rights:-

1. The right to lodge his complaints/grievances to the Undertaking individually in person or in groups through the Union;

2. Without prejudice to the provisions of the Agreement and provided there is a vacant position, the right to request for promotion, lateral transfer or transfer to a lower grade job classification. However, the Undertaking shall not be obliged to perform per his request;

3. An employee may not normally be required to work outside his job description. He may be required to discharge assigned duties and responsibilities entrusted to him by his immediate supervisor any job related to the work. However, before he is assigned to do beyond or different from his job description, he shall be provided with the revised or updated job description. Same shall be filed in his Personal File.

4. An employee who feels that he is either underpaid or overloaded with assignment may submit to the Union his request for re - evaluation with adequate justification. The Union may discuss same with the Undertaking in accordance with Article 4 of this Agreement.

5. Employees of the Undertaking shall have the right to participate in areas that relate to the planning and evaluation of the performance of the Undertaking and such areas that involve staff engagement either directly or through their representatives and express his opinions verbally or in writing;

6. Employees shall have the right to be represented by their Union. Their right to participate in the functions of the Union in accordance with the internal statute of the Union, to freely discuss any matters concerning labor conditions with the officers of the Union and to pursue any disputes with the Union or before the Ministry of Labor & Social Affairs (MOLSA) or any competent third party as agreed between the Undertaking and the Union or present before a court of law.

3.2.2 Duties of Employees:-

Notwithstanding to the duties of employees under the law, each employee shall have the duty to:-

1. Abide by and fully observe the provisions of this Agreement, the Proclamation and other labour laws, the Undertakings policy rules and regulations, his contract of employment and job descriptions, and those matters outlined under the work rules and standard procedures issued by the Undertaking in relation to his job;

2. Carry out his assignments or instructions and devote his full energy & ability to the performance of the duties he is employed for with vigilance and caution, to enhance the Undertaking's output and productivity;

3. Conduct himself in a manner which will gain respect and prestige to the Undertaking and refrain from acts contrary to that while on duty or in Company's Uniform;

4. Efficiently and timely carry out to the limits of his capabilities all assignments or instructions which are within his normal duties or those orders relating to his job descriptions or any job in relation to his work as provided by his immediate supervisor;

5. Duly care for and treat the customers of the undertaking the way they deserve, act in full cognizance of customer service as the cornerstone for the existence of the Undertaking and provide efficient service to the customers respectfully in relation to his daily activity;

6. Refrain himself from attempting or committing any sexual harassment acts against his workmates or customers or clients of the Undertaking;

7. Undergo periodic medical examination and undertake preventive medical and safety measures as required by the Undertaking, at the expense of the Undertaking;

8. Refrain from deliberate or negligent act which might endanger his own life or safety, the safety of his fellow employees or other persons;

9. In accordance with the instructions of the competent employees or authorities of the Undertaking, render assistance.

10. Upon observing or apprehending or catching red- handed any theft, misappropriation, embezzlement or misuse of the funds or property of the Undertaking, immediately report the fact to the appropriate authorities of the Undertaking or to its Security Offices. However, where such reporting to the Undertaking's authorities is not possible and where the nature of the case requires immediate attention, it shall be reported to the appropriate government or public authority competent at the locality;

11. Any employee shall refrain himself from doing such acts prohibited under the Proclamation, this Agreement or the internal Policy and regulations of the Undertaking. In particular, no employee shall:

(a) remove from the Undertaking's premises or make use for himself or a third party, any property or item belonging to or found in the premises of the Undertaking, without prior permission from the competent authorities of the Undertaking;

(b) Present him for duty in a condition which disturbs or inconveniences other employees on duty, or in a condition which may create harm or distraction, or in any self-induced negative condition;

(c) Threaten, insult, physically attack or assault any individual within the Undertaking's premises;

(d) Violate or disregard the policies, rules and regulations and procedures of the Undertaking or the obligations established in this Agreement;


Rights and Duties of the Union and the Management of the Undertaking

3.3.1Rights Reserved for the Union

1. The Union reserves its legal right to discuss labor matters with the Undertaking in accordance with the procedures stipulated under the Law, regulations and this Agreement.

2. The Union shall be able to participate in the management of the Undertaking in the manner as stipulated in this Agreement.

3. Only the leaders of the Union who are authorized to do so as per the internal regulations of the Union can take part and involve in Collective bargaining process of a Collective Agreement from the employees' side.

4. Except for the Executive Officers, Members of the Council, shop stewards and Members of the Audit Committee of the Union, no other employee may exercise such acts or rights provided to the Union under the Proclamation or this Agreement.

3.3.2 Duties of the Union

The Union shall:-

1. Observe the internal Policies and regulations of the Undertaking, the Proclamation and other rules and regulations on labor administration and this Agreement;

2. Prevent all acts which are prohibited under the Proclamation or those acts which are against its objectives or its internal statutes from happening and do whatever is necessary to prevent the occurrence of such acts in consultation with the Undertaking; 

3. Endeavour to orient and make its members aware and observant of the basic principles of the Proclamation, labor rules and regulations, standards and the provisions of this Agreement;

4. Take the initiative to generate rules and policies that concern the Undertaking and the staff and propose areas for improvement;

5. Cooperate and partnership with the Undertaking, in accordance with the law, on all areas that would help improve the growth and profitability of the Undertaking and the occupational health and working conditions, share ideas with the Undertaking on areas that would help create conducive working relationship between the Undertaking and its employees; and

6. Forward the list of all members of the Executive Committee, the Council and shop stewards of the Union to the Undertaking in writing.

3.3.3 Areas for Union's Participation

A) The Union shall participate in the following Management activities as outlined in the Agreement.

1) On internal job openings that the Undertaking opts to make them vacant and open for bid for its employees; and

2) In Employees' Discipline Committee.

B) The Union will be able to participate on such areas which are not related to management of the Undertaking and matters concerning social activities in accordance with the agreement to be reached with the Undertaking depending on the necessity of the case.

Article 4: Joint Consultation and Bilateral Relations


Consultation Meetings/Social Dialogue

4.1.1 The purpose of joint consultation is to further industrial harmony and foster good relationship between the Undertaking and the Union with a view to increasing productivity of the staff and the Undertaking.

4.1.2 Regular Meetings: The Undertaking and the Union may meet when necessary at the request of either party, on the last Thursday of each month to consult on matters pertaining to interpretation of this Agreement, the Undertaking's policies, rules and regulations, or Customary practices or other matters as affecting several employees collectively. If the last Thursday falls on a weekend or a Holiday, the meeting will be held on the next business day. Either party may not ask for postponement more than once. (Except collective ones, individual grievances shall not be discussed at such meetings).


Extraordinary/Special Meetings

4.2.1 Five (5) extraordinary meetings may be called by either party each year to consider urgent matters which require joint attention prior to the holding of the next monthly meeting. Additional extraordinary meetings may be called as the need arises when agreed upon by both parties.

4.2.2 The date of the meeting shall be fixed by mutual agreement of the two parties.

4.2.3 All such meetings shall be attended by officers who are in a position to take immediate and effective decision on items of the agenda submitted by either party.

4.2.4 Not more than three representatives of the Undertaking and three officers of the Union should attend such meetings, However, up to ten officers of the

Union can attend the meeting by having regard to the importance and weight of the agenda of the meeting.

4.2.5 Agenda items shall be exchanged at least one (1) week in advance. Items not covered by the agenda shall not be discussed at such meetings except by agreement of both parties.

4.2.6 Either party may, when necessary, be accompanied by its legal advisors, or call witnesses or produce evidences.

4.2.7 Meetings adjourned before covering agenda items shall be continued the next day.

4.2.8 Minutes of the discussion, accepted resolutions, decisions and/or agreements shall be recorded either by the Undertaking or the Union as appropriate and be made ready within five (5) working days for initial by both parties.

4.2.9 Agreements reached at such meeting shall be effected up on signature by the two parties. Where, however, the agreement repeals, amends or creates new employment conditions, it shall be effected after registration by the Ministry of Labor and Social Affairs (MOLSA)_and it shall form additional part of this Agreement.

4.2.10 The meeting procedure of ordinary meetings shall be same as specified under Articles 4.2.1 to 4.2.9 above.


Bilateral Relations:

The Union shall communicate with the Undertaking through the Corporate Human Resources Management Division in it all correspondences. The-Undertaking shall also communicate with the Union through its Corporate Human Resources Management Division. . However, in case the Union finds any matters that need the attention of the CEO, the Union may directly communicate in correspondence with the CEO.

Chapter Two Working Conditions

A. Equal Pay for Work of Equal Value

The Undertaking and the Union agree that when negotiating this Agreement, the guiding principle shall be To ensure the principle of equal work for equal pay irrespective of one’s race, sex, credo and color.

What the law says:

The principle of equal remuneration for equal work is recognized by the Labour Proclamation and women can't be discriminated against, in matters of remuneration, on the grounds of sex. Constitution supports women's right to equal pay for equal work.

B. Gender and Equality

The employer shall not discriminate directly or indirectly against an employee or prospective employee on grounds of race, color, sex, religion, political or other opinion nationality, ethnic or social origin, disability, pregnancy, mental status or HIV status.

Every employee shall be protected from sexual harassment, any unsolicited or unwelcome verbal comment, gesture or physical contact of a sexual nature. Therefore: (a) No employee shall be subject to sexual harassment either by somebody in authority over him/her as a condition of engagement, continued employment, promotion, salary progression, reward or any other consideration or by his/her fellow workmates as a condition as social acceptance at work. Any case of sexual harassment shall be immediately reported by the victim to a designated officer and perpetrator shall be dealt with in accordance with the organization's disciplinary procedures after having been given an adequate opportunity to defend himself/herself against the charges. (b) Sexual harassment shall include any of the following; if the person doing it, knows or ought to have known that it is unwelcome. (i) Making a request or exerting pressure for sexual activity or favours. (ii) Making intentional or careless pressure for sexual activity or favours. (iii) Making gestures, noises, jokes or comments, including innuendoes, regarding another person's sexuality. Each employer shall appoint a designated person preferably a Senior Lady Manager to whom the victims of sexual harassment may report the cases for appropriate action.

Both the Employer and the Union shall establish a gender and equality subcommittee composed of two representatives each chaired by a person agreeable to both parties to study, inform/advice and make recommendations.

To implement this, the parties shall establish a joint committee composed of five (5) people in equal proportions of the two representatives each and with a chairperson that shall be greed upon by both parties

The work of the committee shall:

(i) Formulate a gender and equality workplace policy

(ii) Monitor the implementation of the policy or any gender and equality standard

(iii) Propose any amendments that may necessary

(iv) Perform any other duties that shall promote adequate promotion of both gender and that shall enhance equal treatment of I persons irrespective of gender, race, color, religion, political affiliation

What the law says:

In accordance with the Ethiopian Constitution, all persons are equal before law and there can't be any discrimination on the grounds of race, nation, nationality, or other social origin, colour, sex, language, religion, political or other opinion, property, birth or other status (Art. 25).

C. Job Security for Pregnant women

The Undertaking shall not dismiss a female worker due to her pregnancy or any other reason connected with her pregnancy in all aspects of employment.

A female worker has the right to return to same job/position (or some other similar and suitable position) after availing her maternity leave, on same terms and conditions which would have applied if she had not been on maternity leave.

What the law says:

Protection from Dismissals: a women worker can't be dismissed during the period of her pregnancy, maternity leave and four months after her confinement. Pregnancy of a worker does not constitute the valid ground for termination of a worker's contract.

Right to Return to Same Position: there is no explicit provision in the law, which gives a female worker the right to return to same position after availing her maternity leave. However, because an employer can't terminate a female worker on maternity leave, it gives an implied right to return to the same job.

D. Pregnancy and breastfeeding

A nursing mother (a woman with a child of less than one year old) is entitled to a total of one hour, either before the beginning of her normal reporting time or in the cause of her working hours, to nurse her infant. An extension beyond one hour shall be at the discretion of the Employer in consultation with the Union.

Interruptions of work by a nursing mother for the purpose of nursing her baby shall be treated as working hours and paid accordingly.

Unless with her consent, a pregnant woman or a nursing mother [a woman with a child up to one year old] shall not be engaged to do overtime.

What the law says:

According to The Labour Proclamation pregnant women workers may not be asked to work overtime or night hours. A woman worker may be transferred to another place if her job is dangerous to her health or her pregnancy.

Article 5 Probationary Period


The first forty five (45) days employment of any employee, effective from the first date of his employment, shall be probation period; and this shall be clearly specified in the employment contract. During such probationary period, the Undertaking can terminate the employment contract of the employee without needing to give him advance notice, severance pay and compensation.

What the law says:

In accordance with the Labour Proclamation, probationary must be declared in writing however it may not exceed 45 consecutive days. A worker reemployed by the same employer for the same job cannot be subjected to probation. Probationers have the same rights and obligations as other workers.


Any employee can resign at any time during his probation period without giving notice to the Undertaking.


Except for the express provisions as stipulated in this Agreement, the law and policy of the Undertaking, the conditions of this Collective Agreement are not applicable to any employee who is on probation period.

Article 6 Working Hours


Regular Working Hours

1. “Regular working hours" means the duration of hours in which an employee discharges his duties or makes himself available for work as required under the law, this Collective Agreement or working rules of the Undertaking.

2. Unless provided otherwise in this Agreement, the regular working hours of any employee of the Undertaking shall not exceed eight (8) hours within twenty four (24) hours or forty (40) hours per week. However, in such Divisions of the Undertaking wherein works are carried out on shifts, the regular working schedules may be varied.

3. The starting and ending time of the working hours of the regular and shift hours shall be as specified/determined by the internal rules of the Undertaking.

4. Working hours shall be equally distributed for each working days of the Undertaking during the week. However, where it is necessary due to the nature of a given work, it is possible to split/reduce the number of working hours in any working days of a week and distribute the difference to the remaining days of the week; but it is not possible to extend the regular eight (8) working hours of any business day by more than two (2) hours.

What the law says:

The normal hours of work are 8 hours a day and 48 hours a week. The Labour Proclamation defines "normal hours of work" as the time during which a worker actually performs work or avails himself for work in accordance with law, collective agreement or work rules.


Off-Duty Breaks (Time-Offs)

A. Employees who work in the regular working hours of the day, except where the nature/condition of the work requires otherwise, shall be entitled for 15 minutes off-duty break before the afternoon, one full hour for lunch and 15 minutes break in the afternoon.

B. For any shift work, the off-duty break to be given shall not be totally more than 30 minutes divided into two off-duty breaks.

C. The off-duty breaks or lunch or dinner breaks shall be given for employees on a staggered basis and in turns as per the schedule to be issued by the Undertaking for every Division.

D. Where the Undertaking requires an employee to work during his lunch or dinner break time and where the employee spent on duty during such break times, the Undertaking shall grant the corresponding break times for lunch or dinner and prepare the food or facility as equally as the other workers have enjoyed.


Any worker who is required/assigned to work in excess of the regular daily working hours or the weekly working hours distributed in line with Article 6.1. (4) shall be entitled to get 15 minutes off-duty break/rest time.

Article 7 Shift works


An employee shall be required to work in all the three regular shifts of the Undertaking during the day, evening or night shifts as per the schedule of the Undertaking and as shown under Article 6 of this Agreement.


Unless necessitated due to the nature of the operation of the Undertaking, no employee shall be scheduled to work in any one of the day, evening or night shifts for more than one month (thirty days at a time). In case of emergency or compelling circumstances, however, any employee who is working in the night shift shall not be required to work for more than one additional schedule. Where a shift schedule change is to be made, the sequence of shifts/shift pattern (day-evening-night) shall be observed/maintained.


The beginning of regular working hours for employees working on shifts shall be the hour they start their work in the particular shift. The applicable shift premium shall be calculated based on the time the employee started his work in the concerned shift.


For the purpose of calculating shift premium payments, the starting time of shift work schedules shall be considered to be as shown below:

Day shift: From 06:00 A.M (in the morning)

Evening shift: From 05:00 P.M

Night shift: From 0:00 A.M (mid night)


Where an employee who is assigned on shift works changes his shift or takes his day off, the rest time of the employee shall be counted from 16 hours after he completed working the normal working hours he was assigned to work on the day.


For employees who work during the normal office hours only, their rest days of the week shall be counted/started as per the Proclamation.


An employee who reported to carry out his normal duties either in normal office hours or normal shift works allocated for eight hours, unless the shift schedule is divided into two or distributed, shall be considered as if he has worked for eight hours whether the Undertaking occupies him to work eight hours or less. However, the Undertaking shall provide the employee transportation service to and from place of work in those shifts where the eight (8) hours schedule is split into two.


So long as it doesn't affect the business operation of the Undertaking or result in any additional cost to the Undertaking, shift workers who are holding equal positions in job grades can exchange their shift schedule to each other by informing and securing the prior approval of their immediate supervisor.


Employees working in the evening shift shall be given one hour as dinner break before 09:00 P.M.


Evening and Night Shift Premium/Allowance

A. Shift Premium shall be paid for employees who are assigned and work in the evening or the night shift as shown herein below.

For Example:

Job Grade

Evening shift

Night Shift


Birr 2.40 per hour

Birr 2.70 per hour

5-9 and 30-33

Birr 3.20 Per hour

Birr 3.55 per hour

10-17 and more than 34

Birr 3.80 per hour

Birr 4.20 per hour


B. Where an employee who started working in the evening shift continues working in the night shift, the shift allowance of such employee shall be as per the rate specified for the shift he worked longer.

C. In case an employee who started working in the night shift continues working in the day shift, the shift allowance of the employee shall be calculated at the rate of the night shift for the total number of hours he worked.

D. Employees who work overtime during shift work hours shall be entitled to get the applicable shift allowance pay in addition to the overtime pay for the shift in which overtime is worked.

What the law says:

Night work compensation.

In accordance with the Labour Proclamation, night work is the work done between 10 p.m. and 06 a.m. There is no specific provision in the Labour Proclamation, which requires employers to make premium payments to the night workers. Higher payments are available only to the workers working overtime during night hours. If night hours are overtime hours, worker has to be paid 150% of the normal hourly wage rate.

Article 8 Overtime Work


Its Scope & Employees Entitled For Overtime Pay

1. "Overtime Work" shall mean the actual time worked in excess of the regular working hour as defined in Article 6.1 above or the average eighty (80) hours distributed for two weeks' period.

2. Overtime work shall be authorized only under the following conditions and as per clear instruction of a competent agent of the Undertaking. The overtime work order and authorization shall be equally distributed among those employees that are competent to do the job and the record of which shall be maintained properly.

3. Overtime pay to be paid in accordance with this Article.

4. Where an employee is required to return from abroad on his day-off while on the Undertaking's business spending more than 8 hours flight time and where the next day is his working day, his arrival date shall be considered as his day off. Again, where an employee is required to travel on his day off for company business, he shall be given a compensating time-off for the first day only.

5. An employee who leaves after carrying out his work on night shift shall not be required work overtime. However,, where the employee is required to work on two consecutive shifts due to reasons beyond control and under the instructions of the Undertaking, he shall be given commensurate rest /day-off on the next day in addition to the overtime pay for the excess hours he worked for.


Conditions for Overtime Work

1 . The Undertaking has the right to require any employee to work an overtime work under the following conditions:-

a) for any urgent work the Undertaking requires to do; or

b) where the Undertaking has no option to get the work done; or

c) where accident or imminent danger imperils or risk becomes imminent; or

d) for any reasons or factors beyond control or on any uninterruptible and continuous jobs or for replacement of employees who are on leave or away from work for various reasons;

2. The hours of overtime work for reasons stated in Article 8.2 (1) (a) above shall not exceed two (2) hours in any single twenty four (24) hours period or twenty (20) hours in any one month and one hundred (100) hours in any given year. However, the overtime to be worked under conditions stated in Article 8.2. (1) (b), (c), and (d) may exceed such limits.


Calculations of Overtime Pay

1. Pay for overtime work performed during the periods indicated below shall be calculated by multiplying the hourly rate based on actual salary as follows:

a) Overtime work performed between 06:00 and 22:00 hrs, hourly rate times 1'/2 ;

b) Overtime work performed between 22:00 and 06:00 hours, hourly rate times 12/3 ;

c) Overtime work performed on days-off of the week, hourly rate times 2

d) Overtime work performed on public holidays listed in this Agreement, hourly rate times 2/;

e) An employee assigned to work on eve which the Company celebrates per Policy, shall be paid overtime at holiday rate.

2. Overtime pay earned during the first fifteen (15) days of any month shall be paid with the regular salary for said month. Overtime pay earned thereafter during said month shall be paid with the salary of the following month.

3. If the employee requests and where the Undertaking agrees, overtime work performed may be compensated by time-off.

4. An employee called from his home for overtime work shall be credited for the actual hours he worked or for a minimum of five (5) hours whichever is longer/favorable.

What the law says:

Overtime Compensation

The Labour Proclamation defines "Overtime” as the work done in excess of the normal daily hours of work. Overtime work may not exceed 2 hours in a day or 20 hours in a month or 100 hours in a year. If a worker works beyond the stipulated working hours during the week days, i.e., 8 hours a day and 48 hours a week, he/she is entitled to an overtime premium as follows:

- 125% of normal hourly rate for overtime work between 06 a.m. to 10 p.m.;

- 150% of normal hourly rate for overtime work between 10 p.m. to 06 a.m.;

- 200% of the normal hourly rate for work on a weekly rest day; and

- 250% of the normal hourly rate for work on a public holiday.

Article 9 Weekly Rest Period (Days Off)

An employee shall be entitled to forty eight (48) consecutive hours days off in Seven (7) days. However, where the nature of the shift work does not permit such days off or if the employee so requests, he shall be granted two different days-off within that same week.

What the law says:

Workers are entitled to 24 consecutive hours of rest per week. Labour Law requires that weekly rest day, in principle, should be Sunday for all employees. If it is impossible to provide weekly rest day on Sunday, due to nature of work, another day be substituted as weekly rest day Weekly rest must include the period from 6 a.m. to the next 6 a.m.

Article 10 Leave



10.1.1 “Leave" shall mean an approved or excused absence from work whether with or without pay for some limited time and it includes various leaves that are provided under this Agreement, the law or internal policy of the Undertaking.

10.1.2 For the purpose of calculating annual leave Saturdays, Sundays (weekly rest days of the employee) and public holidays enumerated under Article 10.2 below shall not be counted.


Public Holidays

10.2.1 All employees of the Undertaking shall have the right to observe the following public holidays:

a) New Year (Ethiopian) Meskerem 1

b) Meskel Meskerem 17

c) Id AI-Adha (Arefa) (as it falls)

d) Christmas day (Ethiopian) Tahsas 28 or 29

e) Ethiopian Epiphany Tir 1 1

f) Mawlid (as it falls)

g) Victory of Adwa Yekatit 23

h) Victory Day Miazia 27

i) Good Friday (Ethiopian) (as it falls)

j) Easter (Ethiopian) (as it falls)

k) May Day Miazia 23

l) Ginbot 20 (downfall of the Derg Regime)... Ginbot 20 m) Id Alfater (as it falls)

n) Holidays proclaimed as celebration days by the Federal Government or Regional States under the relevant proclamation, directive and public announcement shall be considered as holidays for the concerned employees of the Undertaking.

10.2.2 Except those enumerated in sub-article. 2.1 above, where emergency holidays not recorded in the public calendar occur and where the Undertaking has not announced such as holiday, employees are required to be present at their regular work places.

10.2.3 If employees are assigned to work under conditions shown in sub-article 2.2 above, the Undertaking shall grant payment for such employees on duty at the hourly rate of holiday payment. Nevertheless, if employees are not assigned on duty, the Undertaking shall provide transport services to return them to their area of residence in similar way it does to day shift workers.

What the law says:

Workers are entitled to fully paid festival (public and religious) holidays. These include memorial holidays and religious holidays (Christian and Muslim origin).Public holidays are usually 13 in number.

Weekend / Public Holiday Work Compensation.

Workers may be required to work on weekly rest days and public holidays. In such circumstances when employees have to work on official/public holidays, they are entitled to receive wages at a premium rate of 200% of the normal hourly wage rate. However, there is no premium pay for the workers working on weekly rest days.


Annual Leave

10.3.1 General

1. An employee shall be entitled to uninterrupted annual leave with pay in the following manner based on the schedule to be set as convenient to the Undertaking and the employee.

2. For the purpose of annual leave calculation, the annual leave period shall be counted from January 1st through December 31th.

3. Subject to the provision in sub-Article 2 above, the annual leave period can be changed in the future based upon the mutual agreement of the Union and the Undertaking in order to correlate the period with the budget year/ fiscal period of the Undertaking.

10.3.2 Allotment of Annual Leave Days:

1. An employee who has served for one year shall be entitled to annual leave of fourteen (18) working days.

2. Any employee who has served for more than one year shall be entitled to annual leave of one (1) working day for each years of service in addition to that specified sub-article in 1 above.

3. For the calculation the one additional working day that is provided under 10.3.2(2) above, with regards to the term year, any employee who is employed before December 31 shall be considered as if he has served for one year.

10.3.3 Procedure for Granting Annual Leave :

1. An employee shall be entitled to take his first annual leave after 12 months service in the year and be entitled for leave afterwards. Except for emergency cases, a new employee shall be eligible for annual leave only after providing three (3) consecutive months of service to the Undertaking. .

2. Annual can be given based on the undertaking's plan, upon a year and considering the interests of both the employee and the undertaking. However, if the service period of an employee is below a year, he shall be given/entitled to annual leave at the end of his service year proportional to his service period.

3. An employee shall utilize his accrued annual leave in the year next to which his annual leave is accumulated.

4. An employee shall be entitled for annual leave as per the provision of this Collective Agreement, and such leaves shall be granted based on the activity plan of the Undertaking.

1. By the end of every October, the employee shall be entitled to submit written proposal, showing his three (3) choices regarding the time he plans to take annual leave, to his Immediate Supervisor. And his Supervisor shall have one of the choices approved and to be in effect by him considering both the employee's interest and the operation of the Undertaking in every November. The approved annual leave schedule shall be attached to personal file of the employee and be kept at the Department. . The program shall be communicated to the employee upon its approval in any convenient means of communication.

2. The employee's first choice will be respected provided the schedule of the operation permits. If, however, the choice of the employee conflicts with other employees' choices under the same Supervisor, the employee with higher seniority will be given priority. Where decision cannot be made on the basis of seniority, the order of registration number shall be used to decide.

3. The Undertaking shall make endeavour to release the employee to timely take his annual leave as much as possible. However, incase annual leave of an employee is postponed due to workload; the employee shall take his annual leave at his first choice in the following year without being affected by seniority.

10.3.5 Utilization. Accrual and postponement of Annual Leaves

1. The Undertaking shall make the employee timely take his annual leave as much as possible.

2. Annual leave shall accrue for the calendar month in which employee worked and received pay and it shall be taken during the year following the year in which earned.

3. Save to the provision specified otherwise, where an employee requests to take his annual leave in part and where the Undertaking agrees, the leave can be granted by dividing into two.

4. The Undertaking can postpone the annual leave period of the employee upon the employee's request and its agreement or where the operation necessitates to do so. However, where it needs to postpone the employee's annual leave period due to operational requirements or workloads, it should clearly notify the concerned employee at least fifteen (15) days in advance.

5. The annual leave that was postponed in any given year in any way can't be extended for more than two consecutive years.

What the law says:

Workers are entitled to 14 days of paid annual leave on completion of one year of service plus one working day for every additional year of service. For a worker with 5 years of service, the period of paid annual leave is 18 working days.

10.3.6 Payments related to Employees on Annual Leave

1. An Employee going on annual leave shall, if the so requests, be paid his salary consisting of the days he has worked for plus the period of leave.

2. The amount of salary to be effected for an employee who is on annual leave shall be equal to the amount that he should earn while on work.

3. A terminated employee or an employee who resigns with the consent of the Undertaking or an employee who is pensioned shall be entitled to payment in lieu of annual leave accrued and un- utilized up to the date of termination or resignation, computed on the basis of the employee's current salary as follows:

In Lieu of Vacation payment = Annual leave days X his monthly salary 22

1. Accrued annual leave shall not be granted in anticipation of a heavy work load in a future period.

2. An employee shall not be forced to take his annual leave ahead of his scheduled time unless he is notified five (5) weeks in advance or he agrees to do so.

3. If an employee on annual leave is hospitalized or is ordered to be treated home due to shortage of hospital bed, the time required for such hospitalization or treatment shall be considered as sick leave and shall not be deducted from his annual leave.

4. Notwithstanding the provisions stipulated on sick leave, an employee domiciled

in Ethiopia and not authorized by a Medical Board in Ethiopia to be treated abroad, the sick leave received from abroad shall be counted as other leave such as leave without pay, not as sick leave. However, if the employee is hospitalized, he may be granted sick leave in accordance with provisions in Article 10.4.8 of this Agreement.

5. If an employee is granted sick leave before he commences utilizing his annual leave, he shall not be required to utilize his annual leave before he fully utilizes his sick leave. He will, however, utilize his annual leave as soon as he finishes his sick leave.

6. When an employee meets an emergency as determined by his supervisor, he shall be given the days necessary to meet the said emergency which will be deducted his accrued annual leave.

7. If a female employee gives birth while on annual leave, she shall be entitled to a maternity leave commencing from the date of delivery. She shall resume her work after she exhausts her interrupted annual leave.

1. No employee shall be called back to work before exhausting the annual leave he started to take.

2. In case of any unforeseeable circumstances where the Undertaking is forced to call an employee back to work while he is on annual leave, the Undertaking reserves the right to call him back; and the employee shall be duty bound to report back to work.

3. Where the Undertaking can't grant the annual leave unused by the employee when reporting back to work excluding the time he took in travel, the Undertaking may give him his remaining annual leave by converting into cash.

4. The Undertaking shall refund the employee with the cost of travel and perdiem that are incurred by the employee as a result of his being recalled to report back to work.


Sick Leave

1. An employee who has completed his probation period shall be entitled to sick leave as per this Agreement for any illness or accident not related to his work.

2. Absence due to illness shall be reported by the employee to the Undertaking's Medical Services and his immediate Supervisor through any available means of communication unless it is beyond his control, within 24 hours, where there is a doctor designated by the Undertaking or 48 hours from a location where there is no doctor designated or where there is not adequate communication.

3. An employee who is sick and seeks to visit the Undertaking's Medical Services will do so at any time of the day in accordance with the procedures set by the Medical Service Department. If the number of employees needing to see the doctor is in excess of what the doctors can handle, the employee shall be sent to a hospital.

4. The time that the employee takes to visit the Undertaking's doctor shall not be considered as sick leave. However, the time spent to visit another doctor as referred by the Undertaking's Doctor shall be considered as paid sick leave.

5. An employee who becomes sick at any time when the Undertaking's doctor is not available will be sent to a hospital or to a clinic with which the Undertaking has credit arrangement, by securing a credit letter from the Undertaking's Medical Services. Where, however, the case is an emergency, the employee may visit clinics or hospitals designated by the Undertaking by showing his company ID Card. However, the medical expenses so incurred by the employee will not be refunded to him if the Undertaking proves that the case was not an emergency.

6. An employee who is granted sick leave from a medical institution designated by the Undertaking or who is discharged from hospital must submit or send the sick leave certificate or other medical reports to the Undertaking's Medical Services within 5 days of receipt, after the lapse of which time the certificate or report shall not be acceptable.

7. A report of physical examination or a statement attesting to the employee's fitness for work must be obtained from the Undertaking's doctor prior to the employee's return to work. If the report is obtained from another doctor designated by the Undertaking, it shall be approved by the Undertaking's Doctor.

8. Sick leave by a doctor shall be granted in the following Manner:-

(a) Sick leave with pay shall accrue at the rate of two and half (2.5) days per month and may be accumulated up to a maximum of sixty (60) calendar days;

(b) An employee who has exhausted his accumulated sick leave stipulated in (a) and is hospitalized or ordered to take treatment at home due to difficulty in securing hospital admission may be granted sick leave with full pay for the period hospitalized in the following manner:-

• After completing probation period up to 10 years of service—40 calendar days;

• More than 10 years and up to 20 years of service - 50 calendar days; and

• More than 20 years of service— 60 calendar days.

(c) An employee who has exhausted his sick leave stipulated in (a) or (b) above may be granted up to sixty (60) days sick leave at half salary.

(d) An employee who has exhausted his sick leave stipulated in (c) above may be granted up to sixty (60) days sick leave without pay.

(e) Any employee who has exhausted the sick leaves granted as per (b), (c) and (d) above shall continue taking the leaves specified in (c) and (d) above.

9. If the Undertaking is unable to laterally transfer an employee recommended by a doctor to be transferred to another job due to health reasons, the employee shall be transferred to an open lower grade position for which he qualifies. In the latter case, his salary shall not be deducted after twelve (12) consecutive months unless his salary exceeds the range maximum for the lower position.

10. If the contract of employment is terminated before the leave period granted to the employee ends, the leave started shall be cancelled simultaneously.

11. A round trip positive ticket shall be granted to employees at regional offices and who may be referred to hospitals in Addis Ababa.

12. Sick leave taken shall be deducted from the accumulated total and shall, thereafter, continue to accrue per Article10.4.8 (a) above.

What the law says:

The Labour Proclamation provides for the paid sick leave for up to 6 months on completion of probation period if sickness is certified by a qualified doctor. A worker is entitled to sick leave if he/she is incapable of work owing to the sickness other than resulting from occupational injury. A worker must inform the employer about his/her absence due to sickness and provide a medical certificate issued by a medical organisation recognized by the Government. The employer may provide paid sick leave as follows:

- 100% of wages during the first month of sick leave;

- 50% of wages during the second & third months of sick leave; and

- Unpaid leave from the fourth until sixth month.


Maternity Leave

10.5.1 Pre- Delivery /Pre-Natal Leave:

1. Any pregnant employee of the Undertaking shall be entitled to:

A. paid leave for pregnancy exams and checkups as ordered by a doctor;

B. Paid leave if the doctor advises her to get rest before she gives birth.

2. A pregnant employee of the Undertaking should submit medical certificate after Physical checkups and leaves she has taken.

3. The pregnant employee shall be given 30 Calendar days of leave before her expected day of delivery. However, if she does not deliver within the 30 days of her prenatal leave, she will be entitled to additional leave until her confinement upon the recommendation of a medical doctor per (1) above. If delivery takes place before the 30 days has elapsed, the post-natal leave of 60 days shall commence.

10.5.2 Post -Delivery/ Post-Natal Leave

1. A pregnant employee of the Undertaking shall be entitled for 60 calendar days post-delivery leave with pay effective from the date of her delivery. However, if she gets special and risky health condition that prevents her from reporting back to work and supported by evidence, additional leave of not more than 30 days without pay may be granted to her upon her request.

2. Maternity leave with full pay shall be granted in case of premature delivery occurring after the fifth (5th) month of pregnancy.

3. Sickness arising out of pregnancy will be treated in accordance with the Medical Insurance Scheme of the Undertaking.

10.5.3 Paternity Leave

Male employee whose spouse is delivering in Hospital shall be granted two (2) Calendar days paid leave to perform necessary arrangements. However, he must submit an evidence attesting that his wife has delivered on this day of leave.

What the law says about maternity leave:

In accordance with the Constitution of Ethiopia and Labour Proclamation, female workers are entitled to fully paid maternity leave of 90 days (30 days antenatal and 60 days postnatal).


Mourning Leave

10.6.1 Grounds for Leave

1. When the employee's biological father or mother, husband, wife, child, adopted child, brother or sister dies, the employee shall be granted 3 days leave or if the burial takes place on the next day he will be granted 4 days mourning leave with pay as from the day of the death.

2. In the case of death of grandparent, step father, step mother, mother-in-law, or father-in-law, foster parents, uncle or aunt, two (2) days mourning leave shall be granted; and if the burial takes place on the next day, he shall be granted three (3) days mourning leave with pay as of the date such relative has died. The mourning leave granted under this provision shall not be more than Seven (7) days per year.

3. In the case of the death of an employee's niece, nephew, sister-in-law, brother- in-law, and first cousin, an employee shall be granted two (2) days deductible from his annual leave. However, the employee shall be granted compensatory working time without overtime pay provided that there is an overtime work to be done in his Section.

4. The employee shall be granted by his supervisor not less than two (2) days from his accrued leave, in excess of the applicable mourning leave, for transportation to and from the place of the occurrence of death if the situation warrants such a leave compensatory time off may be granted per sub article (3) above.

5. In the case of death of any other relative or friend, an employee shall be granted by the supervisor up to eight (8) hours leave deductible from his accrued annual leave or compensatory time-off per sub article (3) above to attend the funeral.

10.6.2 Funeral Leave and Expenses:

1. In the case of death of an employee, work load permitting, his colleagues in the same cost centre shall be granted by their respective supervisors four (4) hours mourning leave with pay to attend funeral.

2. When the employee or his spouse or his natural or adopted child dies, the Undertaking shall provide car to transport coffin. However, if for various reason the Undertaking cannot supply ETB 1,000 (for Addis Ababa) or ETB 2,000 (for out of Addis Ababa) in cash as appropriate will be granted to the employee or the family of the deceased employee. In addition, the Undertaking shall prepare funeral wreath or provide the money for the purchase of same as appropriate if the employee or his spouse dies.

3. Where the deceased employee doesn't have families his place of residence and the funeral is to take place at a place where the families reside, the Undertaking may directly cover the cost of land transport or grant ETB 2,000 (two thousand) to transport remains of the employee.

4. The Undertaking shall facilitate condition as much as possible to enable the cost -center colleagues to attend the funeral ceremony upon the death of the husband/wife, biological father/mother or biological/adopted child of an employee.

5. Any employee who should leave out of the place of his/her regular work for the burial of the above enumerated relatives shall be entitled for round trip air ticket.

6. Where any person residing in the employee's home dies, the employee shall be granted by his supervisor up to three (3) days from his accrued annual leave compensatory working time may be granted per paragraph 10.6.1 (3) above.


Leave of Absence without Pay

10.7.1 Leave to be Granted for Various Purposes

1. An employee confronted with any of the affairs mentioned under Article 83(1) and (2) of Proclamation No. 377/2003 shall be granted paid leave in accordance with the conditions set under the mentioned provision of the Labor Law.

2. If an employee is summoned by any government authority of the police for any other reason or is detained and becomes absent as a result, he shall be granted leave with pay deductible from his accrued annual leave. If he does not have accrued vacation, he will be granted a maximum of seven (7) days compensatory time to work in lieu of the leave he used for the purpose. However, if the employee is detained as a result of the case he was suspected of or summoned for, the Undertaking shall wait for the return of the employee to his work up to 6 months.

3. Employees who attend education in accordance with educational assistance policy of the Undertaking shall be given paid leave for the exam time they take during working hours.

4.The employee who is given educational leave as per Artilce10.7.1.3 should present the necessary certificate.

10.7.2 Marriage Leave:

A. An employee who conducts his marriage will be granted four (4) consecutive days leave with pay for his marriage.

B. Any employee should notify his planned date of marriage to the Undertaking in advance and submit evidence to prove that he conducted the marriage within the leave days granted to him.

10.7.3 Leave for Union's Business

In addition to those leaves for Trade Union representatives recognized under the Labor Law, the following leaves shall be granted to Union leaders to execute the tasks of the Union:-

A. A leave of 4 hours shall be granted every year to all members of the Union to attend the annual meetings and/or elect union officers. The leave shall be given for the date on which agreement has been reached between the Undertaking and the Union.

B. Where the Union desires to hold extra-ordinary meetings, it may do so after the prior approval of the Undertaking.

C. A leave of 4 hours shall be granted per week to the members of the executive committee members of the Trade Union.

D.The executive committee members of the Union may hold extraordinary meetings after the prior approval of the Undertaking. However, such meetings shall not take place more than once per 3 months.

E.The Union may call a meeting of the Council of Union and shop stewards once every three months. The Undertaking shall grant a leave of 3 hours for such purpose.

F.A leave of half day shall be granted every day to one executive committee member of the Union to carry out office duties of the Union.


Leave of Absence without Pay


A. An employee shall be entitled to leave without pay only after he has served six consecutive months in the Undertaking. If the service period is less than six months, it shall be treated in accordance with the Proclamation.

B. An employee shall not be granted leave without pay before utilizing his accrued annual leave.

10.8.2 Conditions for Granting the Leave

A .Leave without pay will be granted on exceptional and serious cases as determined by the Undertaking. However, such leave shall not be granted in excess of sixty (60) consecutive days in a given year. During any leave without pay, the employee's name shall continue to be carried on the payroll. The employee's seniority, pass privileges and other accrued service credits shall be retained.

B .An employee given up to four (4) days leave without pay may be allowed to compensate such leave within two months provided that there is overtime work in his section.

C. In all case where leave without pay is granted a letter shall be written to the employee settling forth the type Agreement.

Article 11 Medical Costs and Insurance Scheme


Medical Expense

The Undertaking shall pay 100% of the medical expenses or maintain a self-issuance scheme for medical benefits listed under (Appendix …….) of this Agreement.


Medical Treatment, Pharmaceuticals & Hospitalization Costs

11.2.1 Treatment and Hospitalization

A. An employee who requires treatment in or admission to a clinic or a hospital shall be given a letter requesting for treatment or admission to any recognized clinic or hospital with which the Undertaking has credit arrangement.

B. The Undertaking will make arrangements for credit facilities with hospitals in places where employees are assigned within Ethiopia. Where arrangements could not be made, the Undertaking will authorize expenditure for this purpose. Where there are no facilities, employees will be treated at the nearest hospital in the area.

11.2.2 Where any employee gets illness out of his work station and submit medical certificate after getting treatment in any nearest hospital in the locality and the certificate is acceptable to the medical division, his cost shall be reimbursed to the maximum insurance coverage this policy permits. The employee should request for refund within 2 months period of time from the date the medical certificate was issued.

11.2.3 If the hospitalization charges of an employee exceed the medical allowance limits provided for under (Appendix …….) hereto, the Undertaking shall pay the excess up to ETB 5,000 (five thousands) or up to three (3) months' salary of the employee whichever is greater and shall recover same by deducting every month a certain portion of the employee's salary.

11.2.4 The Undertaking shall arrange credit facility with pharmacies to enable the employee secure prescribed medicines not available at the clinic or hospital he was referred and where he is being treated or at the Undertaking's Medical Services Unit.

11.2.5 If an employee who is abroad on company business is ill either as a result of a change of location or where a chronic disease he had becomes acute, and if a medical doctor certifies that the illness requires immediate attention, the following shall govern payment of medical expenses:

A. The Undertaking shall pay the medical expenses relating the employee's illness due to the change of location and claim reimbursement from the insurance company or self-insurance under the medical insurance Scheme. The Undertaking shall also bear the expenses in excess of the medical expense allowance under the medical insurance scheme provided the employee presents valid documents.

B. If a chronic disease or illness of an employee becomes acute requiring immediate treatment, the Undertaking shall bear the expenses and shall claim up to the limits of the insurance plan from the insurance company or Self Insurance Scheme and from the employee the portion of the expense that would have been paid had he been treated in Ethiopia. The Undertaking shall settle/cover the difference.

C. If the employee treated under the conditions set forth in paragraphs "A" and "B" above falls ill at his domicile in the same insurance year, the Undertaking shall bear his medical expenses up to the amount that it claimed from the insurance company provided that the balance of the insurance scheme fund does not cover his current medical expenses.

11.2.6 The Undertaking shall contribute 50% of the premium for medical expense of employee's spouse to cover up to ETB 12,000.00 (Twelve Thousand) of their medical expense.

What the law says about medical care:

The Social Health Insurance Proclamation, passed in 2010, provides medical and health services to the workers. All workers are required to be a member of social health insurance scheme


Industrial Injuries and Occupational Diseases

Any displacement payment resulted from work injury shall be in accordance with the insurance scheme arranged by the company as per article 109 (1) of Labor Proclamation no. 377/2003. The payment shall be effective if the degree of displacement is determined by medical board and submitted to the company in accordance with article 102 (2) of Labor Proclamation 377/2003. The worker s responsible to follow up the case, get the decision of the medical board, and submit the decision to the company. Further, the injured worker should report to his immediate head about the accident, fill the format prepared for this purpose, get signature of his head, and submit the format to the company health service. If there may be a section where immediate boss will not be present in the 2nd and 3rd shift and if work injury is prevailed, the victim worker should immediately fill and sign the format and submit to health service. However, his/her immediate boss should confirm whether the occurrence of the accident was at work just by next day before 9:00 a. m. The company shall submit copy of insurance premium document to the trade union.

11.3.1 The meaning of 'industrial injury' and 'occupational disease' shall be as stated under the Proclamation.

11.3.2 The Undertaking shall cover all the medical expenses due to industrial injury and occupational disease.

11.3.3 In case of dispute on whether the injury or the disease constitutes an 'industrial injury' or a 'occupational disease', a panel of three (3) doctors agreed upon both by the employee and the Undertaking shall jointly examine the issue and their decision shall be final.

1 1.3.4 The Undertaking shall, based on the recommendations of a certified doctor attending the patient, pay all medical, pharmaceutical, hospital and/or other related expenses for industrial injuries and occupational diseases. Such an employee shall be sent abroad for further treatment by a medical institution selected by the Undertaking upon the recommendations of a Medical Board and in accordance with government regulations and directives prevailing on the matter. The Undertaking shall select the medical institution to which the employee shall be sent. As far as possible, prior arrangements and preparations with the selected medical institution shall be done to avoid inconveniences on the employee and to ensure his due treatment and safe return.

11.3.5 Where an employee sustains an industrial injury or occupational disease, the following shall apply;

A. The employee shall receive fully pay during the first twelve (12) months that he is absent from work effective from the date on which the employee was required to cease work due to the industrial or occupational/professional disease.

B. If, at the end of said twelve (12) months period, the employee is still unable to return to work, he shall receive, for a further period of nine (9) months, seventy five percent (75%) of his salary. Said amount shall be increased by five percent (5%) for each full year of service completed with the Undertaking, up to a maximum of his one month salary.

C. If the employee is unable to return to work after the periods mentioned in paragraphs "A" and "B" above, or if in the meantime he is declared medically unfit for work, he shall be entitled to benefits in accordance with the insurance Scheme (Appendix …….) of this Agreement.

D. The above periodic payments may be terminated from an employee requested or who is actually receiving such payments on the following grounds:

1. If he refuses to report for treatment and examination or if he acts with negligence or if without any serious reason he tries to hinder the treatment;

2. If he behaves in such a way that he delays his recovery; or

3. If he infringed the directives issued by relevant officials concerning employees who sustained industrial injuries.

11.3.6 Disputes on disability percentage shall be settled in accordance with the decisions of the Medical Board concerned.

11.3.7 In case of disability or death the employee or his legal heirs, as the case may be, entitled to the benefit laid down under the Undertaking's Group Accident Insurance Scheme (GAS) policy.

1 1.3.8 An employee who suffered an industrial injury or a professional disease shall present a certificate approved the Undertaking's doctor testifying that he is fit to return to work.

11.3.9 An employee who is injured while on duty or sustains an occupational/ professional disease shall report such injury or disease within time limit mentioned in Article 10.4.2.

11.3.10 An employee who is unable to be working on his assigned job due to an industrial injury will be assigned on any job for which he is qualified. However, where such employee is assigned on a position which has a lower job grade/classification, Article 10.4.9 of this Agreement shall apply.


Non-Occupational Accident & Injury

11.4.1 The Undertaking shall pay full premium for benefits regarding non- occupational accidents or injuries arising off duty, handle the administrative works and give the employee's benefits as indicated in (Appendix …….) of this Agreement.

11.4.2 Conditions stipulated under Articles 11.3.7, 11.3.9 and 11.3.10 above shall also apply for non-occupational accidents and injuries arising off duty.

11.4.3 Group Accident Insurance Plan(GPA)

1.The Group Accident Insurance Plan (GPA) set forth in (Appendix …….) hereto and maintained by the Undertaking shall be considered as a plan covering employees benefits regarding non-occupational accidents or injuries arising off duty and/or industrial injury or occupational disease.

.A. The Undertaking shall cover medical expenses related to the treatments and costs for complications of a female employee during her period of pregnancy up to her delivery. (but doesn't include the costs associated with the newly born baby).

B. i. Cost Sharing Scheme/Policy

The Undertaking and the out patient employees shall respectively cover 85% and 15% where an employee takes out patient medical service at Medical Services Unit for doctor's visit and laboratory fees.

ii. Eye glass frame cost & the Limit

a. The employee shall cover 10% of the cost of an eye glass frame that costs up to ETB 1,000. However, the employee shall fully bear the cost of an eye glass frame in excess of ETB 1,000.

b.The Undertaking shall fully cover cost of lens and other eye treatments.

iii. Dental Replacement and Treatment Costs

a. The Undertaking shall cover costs of dental treatment up to removal of a tooth. However, cost of dental replacement and related costs shall be covered 92% by the Undertaking and the remaining 8% by the employee.

b. The total cost of dental replacement of an employee shall not exceed ETB 10,000 per year.



i) Realising the negative effects HIV/AIDS has caused to humanity world over, the Company and the Union agree to establish and maintain a work place HIV/AIDS policy to protect and safe guard employees against the scourge and its related stigma.

ii) The policy shall:

a) Establish a non-discriminatory environment in which employees living with HIV/AIDS are able to be open about their status without fear of stigma or rejection.

b) Promote the understanding that HIV and Aids shall be treated like any life threatening condition and that employees living with HIV/AIDS have the same rights and obligations.

c) Ensure that where cases of prejudice and victimization occur due to one’s health status, management shall take disciplinary action against those concerned.

d) Ensure that no applicant for employment shall be discriminated against in the selection process on account of his/her HIV/AIDS status

e) No employee shall be dismissed because he/she has been identified as an AIDS victim.

f) No employee shall be removed from their normal place of work or from their normal duties, or isolated because on account of their HIV/AIDS status.

g) Employees affected by HIV/AIDS may under exceptional circumstances, and only on the advice of a medical practitioner be retired on medical grounds or transferred to an alternative section when and if the employee concerned has been identified as a risk to others in the work place or where his/her health interests would be better in an alternative function.

h) Put in place measures including education, training, and awareness creation and counselling to ensure that transmission of HIV/AIDS at the workplace is minimized or avoided.

iii) Employees shall be counselled and notified that no HIV/AIDS victim shall be treated unfairly with regard to:

a) Recruitment procedures, advertising and selection and appointment criteria.

b) Remuneration, employment benefits and terms and conditions of employment.

c) Training and development

d) Performance evaluation systems, promotion, transfer and demotion.

e) Job assignments

f) Disciplinary measures.

iv) HIV/AIDS testing and confidentiality

a) The Company shall neither require any employee to be tested for HIV/AIDS nor demand that medical examination be taken on any person to ascertain the HIV/AIDS status before employment.

b)Where testing is done at the initiative of the employee and the employee contacts management for assistance, the company shall engage the services of an AIDS resource centre such as TASO, which shall provide the necessary medical care at the company’s cost.

c)All employees living with HIV or AIDS shall have the right to privacy.

d) An employee, who may discover that he/she is HIV+, is under no obligation to inform management.

e) An employee with symptoms of HIV or full-blown AIDS may be advised to seek the services of a Counsellor employed by the Company for advice on the ‘wellness programme’ entailing diet and life style, which is designed to bolster the health and longevity of employees suffering from different ailments.

f) Any breach of confidentiality in regard to HIV/AIDS or any other health status shall be followed by an immediate dismissal and possible prosecution of the officer involved.

Article 12 Salary, Salary Increment and Employee Incentives



1.Subject to the definition given to it under the law, "salary" shall mean the regular payments that are effected to the employee for the work he undertakes as per his employment contract in monthly basis and it doesn't include other payments, additional payments and allowances and per diems that are specified by law.

2. The salary of a month shall be effected on the 16th day of the month for the work that performed up to the 15th day of the next month.


Mode and Execution of Payment

1. All employees shall be paid their salary on the last day of each month by directly depositing to the employees account or in check. The details shall be governed by the internal policy of the Undertaking.

2. If that day is a weekly rest day or a holiday, it will be paid on the last preceding working day. In the month of September, however, employees will be paid on the Eve of Meskel day.

3. Reimbursement of shortage in the pay of an employee shall be made within five (5) working days from the date reimbursement is requested by the employee. However, the employee cannot claim any reimbursement after the lapse of six (6) months.


Payroll Deductions

1. Salary of any employee shall not be deducted except as per the conditions and terms that are determined by the law, policy of the Undertaking and this Agreement and unless based up on the written request or agreement of the worker to that effect.

2. In case the employment contract of an employee is terminated before the debt that should be settled from the employee in relation to training or any other debt is collected, the Undertaking can deduct the commensurate debt amount from the salary of the employee or any other payment to be due to the employee or withhold or off set from such payments.

3. The Undertaking shall deduct the necessary amount from the salary of the employee and transfer same to the account of the Union if and only if the employee requests the Undertaking to deduct the Union contribution from his salary in written and signed request form. Up on the request of the Union or the employee concerned, the Undertaking shall stop deducting the amount of contribution from the monthly salary of the employee and start effecting the full salary to the employee.


Annual Salary Increment

1. The Undertaking shall, upon considering employees productivity, the quantity and quality of production and the growth of annual profit, make annual salary increment for all employees valid for 3 years. This salary increase shall be enforceable starting the budget year in which this Agreement is signed.

2. The Undertaking makes an annual salary increase per this Agreement provided that a minimum of ETB 140,000,000 (One Hundred Forty Million Birr) profit is achieved after applicable profit tax, government dividend and legal reserve are deducted from the net profit in the given fiscal year ended.

3. Up on confirming that the Undertaking has performed successfully in the budget year and earned the above net profit of ETB 140,000,000.00 (One Hundred Forty Million Birr), general salary increment shall be effected in the following manner:

> For employees who earn up to ETB 2,000 salary increment of 8%;

> For employees who earn a monthly salary of more than ETB 2,000

and up to ETB 4,000increment of 7 %; and

> For employees who earn more than ETB 4,000...,,,,,,,increment of 6 %

4. If the Union is has any concerns on the salary increment, it may file its grievances to the Corporate Human Resources Management Division of the Undertaking within one month period of time after the effective date of the salary increment.

5. In consideration of the cost of living standard and based on the necessary study, the Undertaking may revise the amount of salary payment it pays to its employees.

6. Nothing in this Agreement shall be construed to prevent the Undertaking from establishing additional salary grades or from assigning a job at a higher or lower classification on the basis of the contents of the job or from opening or establishing new positions or from changing job titles, other than those which are currently in effect . However, the Undertaking shall not exercise this right with an intent to adversely affect the employee's present or future benefits and progress.

7. The salary increment mentioned under sub article 3 above will be applicable until the employee reaches the range maximum.

8. According to this agreement, an employee is entitled for annual salary increase provided that he/she serves the Company for 6 months within the budget year on a permanent basis and his name is active on payroll list or whose employment contract is not terminated for any ground on the effective date of the increment.

9. Without prejudice to sub-article (7) above, if an employee's current salary exceeds the range maximum of the salary scale set for the position he holds, he shall be paid his one month salary as a onetime bonus and shall not be entitled to annual increment.

10. Employees whose salary increment may exceed their current position range maximum due to annual increment to be made per this Agreement shall receive only the amount in excess of the range maximum multiplied by 12 months as a onetime payment.


Productivity Bonus

1. The Undertaking, upon evaluating the productivity and performance ratings of the employee, shall pay an incentive of one to three months' salary of the employee as a bonus in order to motivate them for additional outcome and productivity based on the applicable policy.

2. With regards to the eligibility criteria for bonus and the conditions of payment, it shall be implemented as per the BSC/ ISC policy and procedure of the Undertaking. In particular, the number of unproductive times the employee spent during the appraisal period including the overall sick leave days and the number of other paid or unpaid leaves that are taken or unused under the Agreement during the year shall be considered and taken into consideration in determining the amount of bonus due to each employee.


Suggestion Award

When it is confirmed by the Undertaking that an employee has made extra ordinary effort to establish or create a system that enables to achieve best outcomes (such as to prevent theft, minimize waste and save cost and to enhance productivity, efficiency in work and performance, initiate innovative ideas and create new implementable working techniques and ideas), the Undertaking may provide the employee with special suggestion/ award as a token in recognition of his suggestion. The implementation details shall be as determined by the internal Policy and Procedures of the Undertaking.


Seniority Award

The Undertaking shall acknowledge, appreciate and reward long and dedicated service of its employees with the following awards:

5 years of Service-.......Three [3] Month Basic Pay

10 years of Service-.....Five (5) Months Basic Pay

15 years of Service-.....Five (5) Months Basic Pay

Article 13 Acting Assignment


A. Normally, a Supervisor may select from among employees who hold positions immediately next or nearest to a higher position in the organizational structure of his Unit to be assigned to act on a higher position. An employee so selected has the obligation to serve in acting capacity.

B. Normally, acting assignment is fairly distributed amongst employees who are equally positioned, qualified and efficient to do the job.

C. No acting assignment shall be given for the same acted position.


A. The job and pay classification of an employee assigned and serving in acting capacity on a higher position shall be the job and pay classification held before such assignment. However, the employee shall be paid an acting pay for the period he acted based the starting salary of the higher position or 12% of his own salary or whichever is higher provided he acted in the higher position in excess of fifteen (15) consecutive days. If an employee who discontinued after acting for fifteen (15) consecutive days again acted on the same position he shall be paid from the date of the second acting assignment.

B. An employee assigned to act shall not be entitled to the position allowance and other payments other than the payment due to the acted position as indicated above.


A. In the absence of conditions indicated under Article 13.1 (a) above, if an employee is confirmed on a higher position he has been serving continuously in acting capacity, his job seniority shall be the first day of the month next to the month he was assigned to act on the job. However, he shall not be paid retroactively for the period he served in acting capacity.

B. A vacancy occupied on acting basis will remain open for a maximum of 90 days. Within this time, the Undertaking must assign employees fit for the position upon competition. However, the mere fact that an employee is assigned to act on a vacant position doesn't make him qualified to be assigned on the position permanently.


Where an employee acting in a higher grade position is required to work overtime on his own regular job or in his acting capacity, he shall be paid overtime for the position he worked. However, overtime worked in an acting capacity shall be paid only for the time the employee is entitled to acting pay for the higher position in accordance with Article 13.2 (a) above.


An employee assigned to act on a higher position shall simultaneously perform the functions of his own permanent position. However, where it is apparent that the two functions cannot be performed by one person alone, an acting person may be assigned for the employee's permanent position with the approval of the SVP or VP of the Division concerned or a person delegated by him.


An employee serving in acting capacity shall not be assigned to act on another position. Where such situation occurs and it becomes necessary to designate an acting, a qualified employee may be selected from another department or division for the purpose.


An employee who is given an acting assignment shall be advised in writing. If two employees have similar qualification and job grade in the same department or division, acting assignment shall be given on rotation basis the duration of which shall not exceed one month.

Article 14. Promotion and Transfer

1. "Job Promotion" shall mean the progression an employee can get as a result of being moved from one lower job grade/ position to a higher job grade/ position in the Undertaking's structure. An employee shall be considered to have been promoted to a higher position when he is transferred or placed from his current lower position to the next higher position as per the conditions specified in Articles

14.1 and 14.2 below.

2. Whenever there is a vacant position in the Undertaking, it shall be internally notified to all interested employees of the Undertaking who fulfill the necessary requirements for them to apply for promotion only for one time through a JOA notice before same is posted to external applicants. Such vacancy announcement should be posted in a place visible to all employees and interested applicants should file their letter of application within five (5) working days effective from the date of announcement.

3. Where it is found impossible to fill the vacant position with internal candidates as announced once, the Undertaking shall have the liberty to fill the vacant position through external vacancy announcement in which internal employees who can meet the requirements at the time of the new announcement may be allowed to participate with external applicants.

4. Wherever an employee is promoted, transferred or demoted from his position due to any reason, the employee shall be notified by in writing by informing him as to his new job position changes in his salary and benefits, the title of the new position along with the Job description of the new position. Such letter and notices shall serves as a modification of the existing contract of employment between the Undertaking and the employee concerned.

5. Where the employee refused to work at the new department or work station to which he was transferred or where the position assumed by the employee is cancelled/became redundant for a justifiable reason and where it is impossible to transfer him to another job assignments, the Undertaking can terminate the employment contract of the employee by giving notice due to him. In doing so, the Undertaking shall send to the Union a copy of the termination letter or give due notice to it.

6. The Promotion of an employee to a position higher in job classification shall be based on the acquisition of the necessary basic qualifications, work experience, ability and the performance result he demonstrated on the position he held previously.

7. Except as stipulated in this Collective Agreement, promotion shall be subject to sub-article 6 above and subject to the availability of a vacant position in the higher classification.

8. No employee shall be allowed to compete for an advertised position within his own department and which is lower in grade than the position he holds. However, the Undertaking will not prevent an employee desiring to change his profession from competing for such lower position without a good cause.

9. A promoted employee shall be granted a promotional increase of 12% of his current salary or the hiring rate of the new position or whichever is greater.


Progression Scheme Exams

1. Any employee shall be eligible for progression exam only if he has accomplished the minimum service years required to progress next under the progression scheme of the position he currently assumed.

2. Any employee should also meet all the requirements set to be qualified to take the progression scheme exam.

3. An employee who meets those conditions specified in Article 14.2 (1) above and wants to take the progression exam should notify in writing to his immediate supervisor or higher supervisor of his intention to take progression exam ten (10) working days before the first day of the applicable progression exam month. The supervisor who received the employee's request shall notify the employee in writing of the date, time and place of the exam within ten (10) working days of receiving the request.

4. Any written or practical progression exam shall be conducted as per the internal Policy and procedures of the Undertaking. However, the exam should consider the work experience of the employee while on the job and the trainings provided to him.

5. Should any employee be dissatisfied with the result or the process of any progression exam undertaken per the Scheme, he may file his grievance to the Union before the result is announced or within three (3) days of result announcement.



1. An employee may be demoted to a lower job grade position where a ground for his termination arises or owing to an agreement reached between the employee and the Undertaking or by a court's decision or at the discretion of the Undertaking or in case where this Agreement or the Proclamation enables the Undertaking to terminate him as part of a disciplinary measure and where the Undertaking mitigates the penalty and opts for the demotion in lieu of his termination.

2. An employee transferred to a lower grade position at his own request receives the basic salary of the said lower position plus the accumulated service increase he accrued over the years on his previous position. However, the employee shall be given the range maximum of the lower grade position where the total salary calculated exceeds the range maximum of the lower grade position.

3. Lateral transfer or transfer to a lower grade position shall be effective as of the date the employee actually assumes the position to do the job.


Transfer or Relocation Allowance

1. Where an employee is transferred to a different location or station, the Undertaking shall bear all expenses for transportation of the employee, his spouse, dependent children and one domestic assistant to such location/station

2. An employee transferred from one location to another shall be entitled to a shipping/relocation allowance for him and his family's household goods and personal effects as follows:-

Article 15 Vacancies and Internal Promotions

A. As regards internal bidding/competition, an 'open position/ a 'job opening' shall mean a position advertised by the Undertaking for competition after opting for not to place an employee by promoting, laterally transferring or by demoting an employee to fill the open position.

B. For open positions as described in Article 19 above, it is only if the employee candidates fail to meet the requirements of the advertised position or fail to pass the examination or interview administered or where there is no qualified applicant internally, will the Undertaking consider external vacancy announcement to invite the application of external candidates.

C. A Job Opening Announcement (JOA) shall be posted in a visible notice on all bulletin boards of the Undertaking and five (5) working days shall be given to interested employees to submit their application from the date of the notice. .

An employee may be allowed to compete for an open position only if he fulfills the following conditions:

a. He must possess the required educational qualification requirements and relevant work experience. (The Undertaking may revise/change these requirements when announcing the Job opening for the second time due to the absence of a qualified employee in the first announcement. It will notify the Union with a copy of the changes).

b. He must have served on the position he holds at least for one year.

c. Subject to Article 14.1.8, the job grade of the position he holds must be equal to or lower than the position opened for competition.


If an employee wants to apply for any vacant position that is announced while he is on leave, he can apply by presenting/sending his duly signed application to that effect either through facsimile or an e- mail message and attachment in a manner that leaves no doubt as to his intention.


An employee who has failed to pass the written exam or interview shall not be deemed to have won the bid for the open position merely because he stood first or because he was just the best from the other candidates given the requirements.


An employee who is transferred to higher, lower or similar position can't oppose his promotion/ transfer/demotion from the date he is notified in writing that he passed the exam administered for it or the promotion/transfer notice is declared or from the date he is aware of such notices or results. Such an employee can only be placed or re-assigned back to his former position permanently through bidding on another JOA as applicable to his previous position.


The promotion date (the position seniority) of any promoted employee shall be calculated from the date the promotion letter that declares the employee has won the competition is issued to him or the date he knew of the transfer, but salary shall be calculated from the actual date on which he started the new job. The previous department of the employee may not retain him or delay the employee from reporting to the new department for a period more than 1 month from the date the employee is notified to have qualified for the promotional transfer. However, if the employee is laterally transferred to similar position or to a lower grade position, the former department may not retain him for more than two (2) consecutive months.


A. The Union shall be made to participate in the Internal Promotion Committee to be established on ad-hoc basis to undertake internal promotions and transfers. The composition of the Committee shall be three (3) representatives from the Undertaking and two (2) from the Union or two(2) from the Undertaking and one(1) from the Union. If the number of members should increase, this shall be one (1) from the Undertaking and one (1) from the Union on (1:1) basis. In addition, all matters concerning promotion and transfer of employees shall be determined in accordance with the internal rules and Policy of the Undertaking governing such matters. The Undertaking shall issue a standard working procedures (SOP) of the Committee in consultation with the Union. The Committee shall be dissolved upon discharging its duties under such working procedures.

B. For Open positions stated in Article 14 above, the Undertaking shall cause an external job opening announcement for external candidates only when the internal candidates fail to meet the requirements set for the advertised position or fail to pass the Examination or interview administered following the first JOA announcement made internally.

C. The Undertaking shall determine the exam date, time and place upon finalizing registration of eligible applicants for open positions.

Article 16 Job Performance Review and Ratings



A. To enhance the ethical behaviors, strengthen good sides, correct weak sides and enhance the productivity of employees and their contribution to the Undertaking;

B. To enable employees to make their own skill evaluation;

C. To identify highly skilled employees, to encourage them, to give them appropriate training and to prepare them to higher responsibility; and

D. To provide with professional and performance improvement program to employees who exhibited lower performance score and to take the appropriate measures if there is no any improvement.


The Undertaking shall notify the initiatives and results expected from the employee and the decision or measures it will take as to the nature of the work of the employee in its BSC/ISC policy and internal rules. The employee shall then be expected to achieve those targets and results as per such requirements. The Union shall make a follow-up to ensure its implementation as per the policy.


If the employee is dissatisfied with the decision on his performance review or the measures, the procedure to file his grievances shall be as it is shown in the BSC/ISC policy and internal rules of the Undertaking.


The performance evaluation of elected Union leaders shall be filled only according to their terms of employment and based on their performance during the time they spent while on their regular duties.

Article 17 Grievance Procedure



1.Any complaint regarding the interpretation or application of the Undertaking's policies, rules and regulations, procedures, this Agreement, or the law shall be considered as 'grievance'.

2. The Undertaking, the Union and each employee concerned shall cooperate in good faith in an effort to adjust all grievances as promptly as possible and in the best interest of the parties.

3. A member of the council or shop steward of the Union whose name has been submitted to the Undertaking through the Union, shall attempt to settle any grievance with concerned Supervisor. If a settlement could not be reached, the matter would be processed through the Grievance submission Procedure set under this Agreement.

4. If the Supervisor does not render a decision on a grievance within the time frame specified herein, the employee has the right to refer the grievance to the next higher level. This provision applies to all steps of grievance submissions under the grievance procedure.

5. An employee having a grievance shall present his 1st level grievance to the concerned supervisor within ten (10) working days from when it arises and is known to him unless he is absent or prevented by illness or other reasons beyond his control.

6. If an employee or the Union acting on behalf of the employee fails to submit a grievance in the manner and within the period specified herein, the employee or the Union shall be deemed to have waived the right to do so and the case will not be reviewed thereafter.

7. When handling a given grievance, both the grieving employee and the concerned Supervisor shall use the Grievance Submission Forms provided in (Appendix …….) of this Agreement. The Undertaking shall have no duty to entertain grievances presented in any other form.

8. The Union will be provided with a copy of the grievance and the decision rendered at each level.

9. Any point of grievance that is not raised in the first step can't be raised in the second and third steps the grievance during the process.


Grievance Submission Procedures

A. An employee having a grievance, not relating to the department In which he works, shall submit same to the concerned department.

B. Except those grievances mentioned under paragraph A' above, all grievances shall be administered under the following procedures.

17.2.1. First Step Grievance

A. An employee who has a grievance shall present his 1st step grievance to his immediate Supervisor within the time frame specified in Article17.1.5 above by using the relevant grievance submission form set for the under (Appendix …….).

B. The Supervisor shall render his decision within five (5) working days.

C. If the grievance concerns disciplinary action imposed on the employee in writing, the employee may present his grievance to the next higher level of authority.

17.2.2. Second Step Grievance

A. If an employee is not satisfied with the decision given under the 1st step, he may appeal to the next higher level of supervision in writing within five (5) working days from receipt of the decision under step one unless prevented by reasons beyond his control.

B. Unless it is beyond his control, the concerned Supervisor shall review the case and render his decision in writing within five (5) working days of receipt of the appeal. He may call both the employee concerned and his immediate supervisor to discuss the points of grievance with them. Where possible, the Supervisor shall exert all efforts to settle the grievance amicably.

17.2.3 Third Step Grievance

A. If no amicable settlement is reached at the 2nd step, the Union or the employee, unless prevented by a reason beyond its control, shall submit the grievance to the Labor Relations department within five (5) working days by filling in the form. The Labor Relations Department shall submit the grievance within 10 (ten) working days to the concerned Executive Officer/Vice President of the Division.

B. The highest supervisor, after having discussion with the employee or representative of the union and doing everything necessary, shall give a decision he considers fit both for the Undertaking and the concerned employee within twenty (20) working days of receipt of the grievance. This decision shall be final and binding within the Undertaking.

Article 18 Per Diem


Per Diem shall be paid to employees to cover meal, lodging, transport, embarkation fee and other similar necessary expenses when he is sent outside his domicile for the business of the Undertaking.


He shall take per diem in advance. Arrangements for advance payment or authority for payment at the site shall be made whenever his days of duty are extended.


Other per diem and allowances shall be applicable to the eligible employees as per the policy of the Undertaking.

Article 19 Transport


For the regular day shift employees, the Undertaking shall provide transport service to and from place of work based on the transport dispatch circles determined by the Undertaking. However, on regular working hours, if the Undertaking is unable to do so for reasons beyond its control, the employee has the responsibility to report to his place of work. Unavailability of transport service shall not be an excuse for absence of the employee from his work place.


The Undertaking shall arrange transport service to and from place of work to employees assigned on night shifts to the extent that their residence is convenient for Company vehicles.

Article 20 Meals Provision

a) The Company shall provide meals to employees while on Company duty.

b) The meals include break-tea/coffee, lunch or supper.

c) These meals will be provided at no cost to the employee.

Article 21 Productivity


The Undertaking shall train its employees and endeavor to provide all that is required to increase their productivity. It shall also take all necessary measures for the protection of the health, safety and dignity of the employees.


The Undertaking shall determine the standard of quality and the speed required to perform assignments. Such speed and quality, however, shall be recorded in advance.


An employee shall perform his assignment in accordance with the standard of quality and speed required. Where standard of quality or speed is not established or where it is not possible to establish such standard, the employee shall perform his assignment diligently and carefully with satisfactory standard of quality and speed.


The Undertaking and the Union shall jointly give the necessary assistance to promote the physical well-being and sporting culture and thereby productivity of employees.

Article 22 Training and Progression Schemes



"Training" shall mean any career or skill development training including educational courses provided within or out of the Undertaking while on his work or out of work for short or long period of time.


Conditions and Requirements for Training

1. The Undertaking shall provide any training that it deems necessary for the work and the employee shall be in duty to take such training.

2. The Union shall ensure that there is a clearly set requirement and the procedure is followed as per the Undertaking's policy during the time of selecting employees for training that requires competition.

3. Trainings specified on progression schemes shall be provided only for those employees who are so assigned by the Undertaking and who are willing to sign special agreement/ commitment bond to serve for the Undertaking for specific period of time after completion of the training. However, the eligibility requirements that are needed for taking trainings that require special agreement/ commitment bond shall be as determined by the internal policy and regulations of the Undertaking.

4. Any employee who is selected for and participated in any training that takes more than one month period shall be obliged to submit a short report about the training process and the lesson he has learnt to his immediate supervisor within one week as of the end of his training .


Progression Schemes

The Undertaking shall prepare a progression scheme of every position and shall notify the Union in case of any change in the progression schemes by sending an approved copy of same.

Article 23 Termination of Employment Contract


Grounds for Termination

An employment contract shall be terminated either by the initiation of the Undertaking or of the employee or as a result of the conditions stipulated under the provisions of the Proclamation or this Agreement or by a specific agreement made between the Undertaking and the employee concerned.


Termination of Employment Contract by the Undertaking

1. The Undertaking can terminate the employment contract in accordance with the grounds that are deemed sufficient grounds for termination under the relevant laws and upon giving the necessary notice to the employee.

2. Subject to the conditions set forth under the Proclamation and other relevant labor laws, the Undertaking can terminate the employment contract of any employee without giving notice due to any the occurrence of any one of the grave offences warranting termination as enumerated in the Appendices of this Agreement.

3. Upon terminating the employment contract of any employee as a result of a fault of the latter, the Undertaking shall issue a letter of termination to the employee stating the effective date and reasons for his termination within 30 working days of the decision to that effect after the end of investigation, if any.

4. The notice of termination shall to be served to the employee in person. However, if it is not possible to find the employee or the employee refuses to accept the notice, the notice shall be posted on the bulletin board of the place where the employee works for 10 calendar days; and if he fails to appear in person and collect the notice within such period of time, it shall be considered as it has been served to him and same shall be attached to the employee's file.


Termination of Employment Contract by Operation of Law or by Agreement

1. The employment contract of any employee shall be immediately terminated upon the death of the employee or where he retires as per the relevant law or if the Undertaking is closed permanently due to bankruptcy or any other reason or confirming that the employee can't perform his work due to partial or full disability.

2. Any employee and the Undertaking may terminate the employment contract by a specific written agreement made between them or in accordance with the conditions provided under this Agreement.

1. Where an employee attains the age of official retirement as specified by the relevant law, his employment contract shall terminated automatically by operation of the law.

2. As it is shown in above paragraph, the Undertaking shall serve a written notice to retiring employees to be separated on ground of retirement 12 months' before their official separation date. The employee should also require to fulfill the necessary formalities at the time he left with six months' period for retirement.

3. Notwithstanding to sub article 1 of this provision, where the employee requests to be separated from the Undertaking on ground of early retirement based on his own will in accordance with the Public Servants' Law before his age is reached to official retirement age, he shall notify the Undertaking by giving a 30 calendar days advance notice advising his desire to be retired. Upon reviewing the request of the employee in line with the conditions required under the relevant law and where the Undertaking accepted the request, it shall notify the concerned government authority for his due entitlements and certifies the employee for retirement benefits in the Undertaking.


Termination of Employment Contract by the Employee

1. Where an employee who completed his probation period wants to resign his work by his own initiation for whatever reason, he shall have the duty to give an advance notice of at least 30 calendar days to the Undertaking stating his intention to resign. However, the Undertaking may shorten the notice period by declaring in writing that it has accepted the employee's resignation with a specified effective date.

2. Any employee who resigns from work by his initiation without giving the minimum 30 days' advance notice required under sub article (1) above shall be liable to pay his 30 days wage to the Undertaking in lieu of the notice as a compensation. The Undertaking may withhold or deduct from final payments due to the employee in order to set off the 30 days notice expected of the employee.

3. Any notice to be served by the employee should be submitted the employee to immediate supervisor or head office of the undertaking (Human Resources Division) by letter or registered mail.

What the law says:

Either party can terminate a contract according to the provisions of the law or a collective agreement or by the agreement of the two parties, by serving a notice or paying in lieu thereof. According to the Labour Proclamation, a contract of employment may be terminated on the expiry or completion of the fixed term contract or piece work; on worker's death; on lawful retirement of the worker; when the undertaking ceases operation permanently due to bankruptcy or for any other cause; or incapacity due to disability.


Severance Payments and Certificate of Service

1. Upon termination of employment contract under the conditions of this Agreement, the Undertaking shall pay the employee's salary, salary related payments and all other payments in line with the relevant laws and its policy.

2. The Undertaking shall issue certificate of service for any terminated employee stating his profession, service period, salary and reason for his termination by attaching his photo, within 15 days from the date the employee finalized the check-out form/clearance.

3. Regarding an employee who resigns and terminates their employment contract for higher education he got personally:

A. Notwithstanding the provisions of Article 23.1 and 23.4, the Undertaking shall not object his resignation if the employee gets the chance for education in abroad;

B. An employee who goes abroad for education will be granted one round trip space available air ticket valid for ninety (90) days in accordance with company policy provided there is no other entity to pay for his transportation.

What the Law says:

The Labour Proclamation provides for severance pay for a worker who has completed his probation. A worker is entitled to severance pay on contract termination by the employer because he/she has ceased its operations permanently due to bankruptcy or some other reason; or if the worker's employment contract is terminated against the provisions of law; or if the worker is part of the reduced workforce; or If the employer has done something unlawful hurting worker's rights; or if his employer has not taken any action to secure the health & safety of workers even after being informed about the dangers in the workplace; and if the employment contract is terminated because of partial or total disability.

The amount of severance pay depends on the length of service and is payable at the following rates:

-30 days wages for one year (as well as first year) of service (severance pay for workers with less than 1 year of service is calculated in proportion to the period of service);

-10 days wages for every additional year of service after the first year (however, the total severance pay must not exceed 12 months' wages);

- 60 days wages in addition to the above payments for workers who are terminated on grounds of redundancy.

Chapter Tree Types and Mode of taking Disciplinary Measures & General Provisions

Article 24 Disciplinary Offences and Measures



"Disciplinary Measure" means a corrective action/measure that the Undertaking takes as per this Agreement against any employee for violating this Agreement or failing to properly observe the work rules and regulations that are issued by the Undertaking or violating the rules that the Undertaking and the Union put in place up on mutual agreement.


The Purpose and Procedure of Taking Disciplinary Measure.

A. Both parties have agreed on the importance of discipline for the required industrial peace, productivity of the Undertaking, safety of the employee as well as for best customer service. The Union and the Undertaking have agreed to exert their maximum effort jointly and as much as possible in order to teach employees to observe discipline and ethical behavior and prevent them from committing offence through teaching/ making them aware to act in a well-disciplined manner or in order to advise and train them before committing an offence.

B. The Undertaking shall take disciplinary measure against an employee for the purpose of:

- Correcting the employee from his offence ,

- Preventing other employees from committing a similar offence,

- Controlling the work environment not to be abused by some, or

- Maintaining good work culture in the Undertaking.

C. The necessary information should be presented and investigated before taking a disciplinary measure against any employee. In addition, before the concerned supervisor makes a decision, the immediate supervisor of the concerned employee should carefully investigate the offense, the seriousness of the offence, behavior of the employee prior to the commission of the offence and the objective conditions that caused the offence.

D. In order to make the work activities to be managed with the appropriate discipline, the Undertaking can take various disciplinary measures as shown in this Collective Agreement through giving verbal/oral warning and advice, issuing letters of written warning, salary fines, suspension from work for a given time and dismissal from employment.

E. The penalty shall be cancelled where it is confirmed that the disciplinary measure was taken without justifiable reason.


Types of Disciplinary Measures

24.3.1. Oral/ Verbal Warning

A. "Verbal Warning" shall mean an oral reprimand by his Supervisor or by a higher level supervisor specifically stating the facts for which the employee is being reprimanded and quoting the relevant provisions of this Agreement or directives of the Undertaking which the employee has violated.

B. Any employee who commits simple offences that consequences verbal / oral warning as per this Collective Agreement shall be given oral/ verbal warning by his immediate supervisor.

C. Immediate supervisor of the employee shall keep record of the oral warning given by stating the date of the offence, the facts and issues involved in the offence and the article of the Collective Agreement violated in any way convenient.

24.3.2. Written Warning

"Written Warning"_shall mean a letter addressed to the employee written by his Supervisor, specifically stating the facts for which the employee is being reprimanded and quoting the relevant article of this Agreement or directives of the Undertaking which the employee has violated.

24.3.3. Fine

A. "Fine” shall mean a penalty which takes the form of deducting salary for breach or violation of any of the offences enumerated in (Appendix …….) of this Agreement.

B. Fines imposed during the first fifteen (15) days of any month shall be deducted from the employee's salary for the said month and fines imposed after the fifteenth day of any month shall be deducted from the salary of the following month.

24.3.4. Suspension from Work

"Suspension" means the a disciplinary measure in which an employee is suspended from work and salary as a result of the offence he committed as provided in this Collective Agreement.

24.3.5. Suspension for Investigation

"Suspension for Investigation”_shall mean a measure by which an employee is suspended from work per the provisions of this Agreement for the maximum of 30 working days.

24.3.6. Termination

"Termination” means the measure in which the Undertaking ends the Contract of employment with the employee as per the Proclamation and this Collective Agreement.

Article 25 Execution of Disciplinary Measures

25.1. Limitation Period

Except for offences entailing termination of employment contract, when the Undertaking confirms that an employee has committed the offence listed in the (Appendix …….), it can impose disciplinary measures within 10 working days. However, if the nature of the offence is such that it cannot be known immediately or if it needs further investigation, the Undertaking shall impose disciplinary measures within five (5) working days from the date the commission of the offence is confirmed.

25.2. Application of Punishment

1. All Disciplinary Measures taken against an employee, except verbal warning, shall be communicated to him in writing by his supervisor, specifically stating the facts, the relevant provisions of the Agreement or the Undertaking's policy/ directives violated, and the measures taken against him. The copy of this will be documented in the personal file of the employee.

2. Where a dismissal action/termination measure is taken, if the Undertaking can't issue the termination letter to the employee due to his refusal to sign and accept the letter or where he can't be found or disappeared or when the Undertaking can't give the letter in person due to the nature of the offence; the termination letter shall be posted for 10 calendar days in an open place on a notice board around the place where the employee works. A Memo to File note shall be attached on the copy of the letter stating that it is posted and same will be filed in the personal file of the employee.

3. A. An employee who committed or is suspected to have committed an Offence that needs further investigation and warrants automatic termination may be suspended up to 30 working days with pay if the supervisor believes that keeping such employee will create inconvenience for the investigation or may result in additional problem to the operation. The suspension letter shall be approved by the Vice President or Executive Officer concerned.

B. The case of a suspended employee shall be forwarded through Labor Relations department to the ad-hoc Discipline Committee jointly established by the Union and the Undertaking. This Committee will have representatives designated both by the Undertaking and the Union in 3:2 ratio and the Chairperson will be elected jointly.

C. Upon reviewing the case submitted to it, the Discipline Committee shall submit its recommendations to the Chief Executive Officer (CEO) as to the disposal of the case within 10 days from the receipt of the case.

D. In case the Committee fails to submit its recommendations for any reason within the time stipulated above, the case shall be forwarded to the Chief Executive Officer (CEO) for his final decision.

E. The Chief Executive Officer (CEO) shall have the power to endorse, modify or completely reverse the opinion of the Discipline Committee and render a decision he thinks appropriate for the case.

F. under this provision, an employee shall be put on suspension status for more than 30 working days. The case of a suspended employee will be executed per the final decision of the Chief Executive Officer.

4. The employee who is suspended or subjected to termination as per this Collective Agreement shall return his Company ID card and security pass upon receiving the letter. In addition, the employee shall not have the right to keep or use the property of the Undertaking which are found under his possession in whatsoever way.

5. A suspended employee shall be entitled to all the rights and benefits that other employees are entitled to during the suspension period. But, such an employee is not entitled to ticket benefits for himself. However, the ticket benefits regarding his eligible family members will remain unaffected.

Chapter Four Miscellaneous Provisions

Article 26 Disputes in relation to Interpretation or Implementation

1. Any disputes between the parties hereto regarding the interpretation or application of this Agreement will be settled through consultation meetings and discussions between the Undertaking and the Union.

2. If not settlement can be reached between them, the dispute shall be settled in accordance with the Proclamation.

Article 27 Repealed Agreements

1. The previous Collective Agreement is fully repealed and replaced with this Agreement.

2. This is the only comprehensive and sole agreement between the Undertaking and the Union. Therefore, all the written agreements made previously between the Undertaking and the Union, the amendments made to the previous Collective Agreement and any understandings of the parties that were considered as an integral part of such agreement and all the procedural rules, standards and customary practices issued based on the previous Collective Agreement so far are repealed and replaced entirely with the present Collective Agreement.

Article 28 Legally Prevailing Version

In case there appears any variance between the Amharic and English versions of this Agreement, the Amharic version shall prevail and have a legally binding effect. 

Article 29 Validity Period of the Agreement

This Agreement shall remain valid for three consecutive years effective from the date it is registered as per the relevant law.

We, the parties hereto have agreed, after due process of collective bargaining on the above stipulated conditions of work, work procedure and various provisions and to implement it and we have signed the agreement herein below.




Date and seal

Seal of the Undertaking



Date and seal

Seal of the Trade Union


From the Undertaking's side:-

1.Name- signed

2.Name - signed

From the Union's side:-

1. Name - signed

2.Name - signed


Sample Collective Bargaining Agreement for Ethiopia created by WageIndicator Foundation - 2016 -

Start date: → Not specified
End date: → Not specified
Public/private sector: → 
Concluded by:


Training programmes: → Yes
Apprenticeships: → No
Employer contributes to training fund for employees: → Yes


Maximum days for paid sickness leave: → 1 days
Provisions regarding return to work after long-term illness, e.g. cancer treatment: → No
Paid menstruation leave: → No
Pay in case of disability due to work accident: → Yes


Maternity paid leave: →  weeks
Job security after maternity leave: → Yes
Prohibition of discrimination related to maternity: → No
Prohibition to oblige pregnant or breastfeeding workers to perform dangerous or unhealthy work: → Yes
Workplace risk assessment on the safety and health of pregnant or nursing women: → No
Availability of alternatives to dangerous or unhealthy work for pregnant or breastfeeding workers: → No
Time off for prenatal medical examinations: → Yes
Prohibition of screening for pregnancy before regularising non-standard workers: → No
Prohibition of screening for pregnancy before promotion: → No
Facilities for nursing mothers: → Yes
Employer-provided childcare facilities: → No
Employer-subsidized childcare facilities: → No
Monetary tuition/subsidy for children's education: → No
Paternity paid leave: → 2 days
Leave duration in days in case of death of a relative: → 4 days


Equal pay for work of equal value: → Yes
Special reference to gender for pay equality: → Yes
Discrimination at work clauses: → Yes
Equal opportunities for promotion for women: → Yes
Equal opportunities for training and retraining for women: → No
Gender equality trade union officer at the workplace: → Yes
Clauses on sexual harassment at work: → Yes
Clauses on violence at work: → No
Special leave for workers subjected to domestic or intimate partner violence: → No
Support for women workers with disabilities: → No
Gender equality monitoring: → Yes


Trial period duration: → 45 days
Part-time workers excluded from any provision: → No
Provisions about temporary workers: → No
Apprentices excluded from any provision: → No
Minijobs/student jobs excluded from any provision: → No


Working hours per day: → 8.0
Working hours per week: → 40.0
Maximum overtime hours: → 
Paid annual leave: → 18.0 days
Paid annual leave: →  weeks
Paid bank holidays: → 
Fixed days for paid annual leave: →  days
Rest period of at least one day per week agreed: → Yes
Paid leave for trade union activities: →  days
Provisions on flexible work arrangements: → No


Wages determined by means of pay scales: → No
Adjustment for rising costs of living: → 

Wage increase

Once only extra payment

Once only extra payment due to company performance: → No

Premium for evening or night work

Premium for night work only: → Yes

Premium for overtime work

Allowance for commuting work

Allowance for seniority

Allowance for seniority after: → 1 years of service

Meal vouchers

Meal vouchers provided: → Yes
Meal allowances provided: → Yes
→  per meal
Free legal assistance: → No