Employment Security

Written Employment Particulars

Individual employment contract may be oral or in writing. A contract of employment is deemed to have been concluded for an indefinite period except for the contracts of definite period or piecework. The employment contract must be stipulated clearly and must not be concluded for the performance of unlawful or immoral activities. It must contain provisions that are more favourable for the worker than those provided the law, collective agreement or work rules.  If a contract of employment is not made in writing, the employer is required to provide a written statement of employment particulars within 15 days of the conclusion of employment contract.

A written employment contract (or a statement of particulars in the absence of employment contract) must specify the following: the name and address of the employer; the name, age, address and the work card number of the worker; type of employment; workplace; rate of wages as well method of their calculation; manner and interval of wage payment; and duration of the contract.  It must be signed by both parties.

In case the employer does not comply with these provisions, the worker must not be deprived of his rights under this proclamation.

Source: §4-8 of the Labour Proclamation No. 377/2003 (amended by Proc. No. 466/2005 & Proc. No. 494/2006)

Fixed Term Contracts

Ethiopian labour Law prohibits hiring fixed term contract workers for tasks of permanent nature. A contract of employment may be concluded for a definite period/fixed term or for piecework in the case of: the performance of specified piece work for which the employee is employed; the replacement of a worker who is temporarily absent due to leave or sickness or other causes; the performance of work in the event of abnormal pressure of work; the performance of urgent work to prevent damage or disaster to life or property, to repair defects or break downs in works; materials, buildings or plant of the undertaking; an irregular work which relates to permanent part of the work of an employer but performed on an irregular intervals; seasonal works which relate to the permanent part of the works of an employer but performed only for a specified period of the year but which are regularly repeated in the course of the years; an occasional work which does not form part of the permanent activity of the employer but which is done intermittently; the temporary placement of a worker who has suddenly and permanently vacated from a post having a contract of an indefinite period; the temporary placement of a worker to fill a vacant position in the period between the study of the organizational structure and its implementation.

The Labour Proclamation does not limit the maximum term (including renewals) of the fixed term contract except in the last two cases where it specifies that the contract may not exceed 45 consecutive days and has to be concluded once only.

Source: § 9-10 of the Labour Proclamation No. 377/2003 (amended by Proc. No. 466/2005 & Proc. No. 494/2006)

Probation Period

In accordance with the Labour Proclamation, a probationary period is the initial period of execution of an employment contract to test the suitability of a worker to the assigned position. 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.

If a worker is found unfit for the job during probation, employer terminates the employment contract without notice and without obligation to pay any severance pay or any compensation. A worker may also terminate the employment contract without any notice.

Source: § 11 of the Labour Proclamation No. 377/2003 (amended by Proc. No. 466/2005 & Proc. No. 494/2006)

Regulations on Employment Security

  • Labour Proclamation No.377/2003 / የአሰሪና ሰራተኛ ዓዋጅ ቁ. 377/2003