BY NATNAEL HEZKIAS

General Overview on Employment and Labour Law

• Employment Law and Labour Law are not terms strictly referring to
two different regimes of laws having their own distinct features, nor
are they terms that can be used interchangeably.
• This is to mean that it is hard to draw the distinction between
Employment Law and Labour Law
• Employment Law refers to a vast area of laws regulating all sorts of
employment relationships.
• employment relationship is deemed to exist between persons where
one agrees directly or indirectly to perform work for and under the
authority of an employer for a definite or indefinite period or piece
work in return for wage where as Labour law refers to an area of
law regulating employment relationships only within specific
sectors.
• Employment Law is inclusive of Labour Law, and the former is
wider only in terms of scope than the later.
Part 1 Ethiopian Labour law by N.H 8/16/2025
 • labor law, it refers to an area of law that governs certain
employment relationships.
• labor law is narrow in scope. This is because employment relations
that are the subjects of labor law are only those which are found
mainly in the industrial sector. Also known as “the law of
Industrial Relations".
• labor law is not interested in all employment relationships, as so
many of such relationships are outside the ambit of this law.
• Labor law is, thus, concerned with employment relationships that
arise mainly within the industrial sector( law of industrial sector).
• Industry for the purpose defining labor relationships doesn't solely
refer to the manufacturing sector.
• It rather denotes the profit making sectors of the economy
• such as tourism, banks, insurance, hotels, etc.
Part 1 Ethiopian Labour law by N.H 8/16/2025
 Historical Background of Labour Law
1. The Slave Owning Society
• In this society we have slaves and slave owners.
• Their relationship was governed by the system in such a manner that
slaves are slaves by status and slave owners are given a higher rank.
• As slaves are deemed as properties, in fact as speaking properties, of
their masters one can’t think of free labour in that society.
• Slaves were not even subjects of the law as they were not deemed as
persons in the eyes of the law.
• They were rather objects of transitions as any kind of item such as
cattle, and were subjects of sale exchange and rent.
• Since there was no free labor that bargains with capital, one can’t
imagine employment relations to exist in that society.
• Therefore, in the slave owning society there was no employment law
and even no need of having such a law, as there is nothing to be
regulated by it.
Part 1 Ethiopian Labour law by N.H 8/16/2025
2. Feudalism
• During the feudalist society instead of owning human beings, men
started to own land.
• he became the subject of the law as a tenant, and the principal
actors on the scene became the tenant and his land-lord.
• Though there was a relatively better situation in terms of the
livelihood of the tenant.
• unfortunately, he was not lucky enough to decide on his labour;
as the system obliges him to render various services either for his
land lord or for the various state and religious institutions.
• The tenant was supposed to deliver part of his produce to the land
lord,
• He was also obliged to be directly engaged in some domestic
activities of the tenant.
• For instance, the tenant may be ordered to construct the fences of
his lord or to serve as a shepherded;
Part 1 Ethiopian Labour law by N.H 8/16/2025
 • If and whenever a need arises to wage war, it was the tenant that is
obliged to shoulder such military duties,
• Beyond all these, the tenant was duty bound to give part of his
produce to the church.
3.Capitalism
• The capitalism ideology which is mainly characterized by liberal
democracy principles has recognized so many principles for its
fellow citizens, to mention, freedom of expression, freedom of
movement, freedom of contract principles the market economy
principles and so on.
• As a corollary to such developments there happened transformation
in various sectors of the economy which started to become profit
making as opposed to the previous ones that were characterized by
making for subsistence consumption and very minimal profit.

Part 1 Ethiopian Labour law by N.H 8/16/2025

1.3 The Development of Employment Law in Ethiopia
• In Ethiopia around 1923, there was an attempt to minimize slavery
and the proclamation issued to this effect gave all slaves who wished
to be free the right to get emancipated by asserting their freedoms
before a judge.
• This proclamation has some how positively contributed to labour
relations.
• Before 1936, we had no industries as such to demand labour in
Ethiopia. But, after the Italian occupation (1936-1941) despite all the
insecurities we faced, there were some starts to establish industries
and capitalist nations were started to be seen.
• In 1941, after the coming to an end of the foreign occupation, the
Emperor came up with a proclamation that clearly and wholly
abolished slavery without any limitations.
• Though we had labour relations of huge magnitude starting from this
period a remarkable development of labour law in Ethiopia came
only after the 1955 revised constitution.
• the 1955 Constitution guaranteed freedom of associations
Part 1 Ethiopian Labour law by N.H
and hence
8/16/2025
Article 47:- Every Ethiopian subject has the right to engage in any
occupation and to that end form an association.
• This constitution could be regarded as a turning point for labour
relations,
• However, there was no any detailed law or procedure as to how to
benefit out of such principles
• For examples, there were no rules regulating the formation of trade
unions, where to go for legalization and registration etc.
• The issuance of the 1960 Civil Code opened the door for the
implementation of this constitutional right by answering some of
these questions. With respect to:
• The formation up to registration of associations see Art 400 – 482,
• The minimum working conditions and standards of employment
when one can take a look at Arts 2512-2609.
• However, the Code has left unresolved regarding some of the
crucial uncertainties in the employment relationships.
Part 1 Ethiopian Labour law by N.H 8/16/2025
 • When we see the developments under Proc. No. 210/63 in light of
the 1960’s Civil Code provisions on employment relations, we can
sort out that from this time on – labour law began to have its own
independence.
• This is because it becomes free from its partners to the Civil law
and has a also been subject of specialized dispute settlement
mechanisms outside of ordinary courts.
• Following the 1974 Revolution of Ethiopia, Proclamation No.
64/1975 was issued.
• It was a law issued with socialist orientation.
• The economic policy of the state was a commanded one; and the
state started to nationalize the means of production for that reason.
• Due to these basic reasons the tendency of the Proclamation was
that it gives undue emphasis for the contribution of labour to the
economy.

Part 1 Ethiopian Labour law by N.H 8/16/2025

1.4. Sources of labour Law
• These are legal instruments that would have impact on regulating
labour relations, and /or in resolving labour disputes
• The categorization of labour laws divide into two classes as private
and public laws
1. Private acts are legal instruments which are made by private
parties. i.e. non state actors
• Those private actors in the relationship are the employer and the
workers individually or collectively.
• These instruments would therefore include contracts of
employment, collective agreements and work rules.
i.Contracts of Employment: Art 4-8 of the Proc. No. 1156/2019
ii. Collective agreements: It is an agreement (contract)
between workers collectively through their trade union and
their employers
III. Work Rules: Art 2(6) Labour Proclamation No
1156/19
Part 1 Ethiopian Labour law by N.H 8/16/2025
2. Public Acts as sources of law
Public acts themselves could be further dichotomized as international
public acts and municipal (national) public acts.
1.International public instruments
• such as ILO conventions,
• ILO recommendations ,
• ILO resolutions
2. National /municipal public acts.
• These are Legal instrument that are handed down by the sovereign
power of a certain state.
• These include constitution, proclamation, regulations, directives
A. FDRE Constitution, Art 42
b. Labour Proclamation No. 377/2003/ 1156/2019
c. Directives of the Ministry of Labour and Social Affairs

Part 1 Ethiopian Labour law by N.H 8/16/2025

 2. The scope of application of labour proclamation
• The Proclamation doesn’t apply to all employment relations.
• It only applies to employment relations between an employer
and a worker.
• Worker employer relationships minus excluded worker
employer relationships = scope of coverage of the
proclamation.
• However, worker employer relationship = worker (definition:
+ distinction :) + employer (definition)
• Therefore, [(worker (definition.+ distinction.)+ Employer
(definition.) ] Minus Excluded worker employer r/ships =
scope of coverage of the proclamation
Accordingly to simply
[ (W + distinction) + E] – Exclusion = coverage of labour
Proc. 1156/2019
Part 1 Ethiopian Labour law by N.H 8/16/2025
2. 1. Employer – Worker Relationships
2.1.1 Definition of a worker
• a worker is defined as/ “Worker” a person who has an employment
relationship with an employer in accordance with Article 4 of the
Proclamation. (Pursuant to Article, 2(3) of the labour proclamation
No. 1156/2019)
• worker” from Articles4(1) and 2(3) respectively, a worker must be a
natural person.
• But, Art 2(18) of the labour Proc. No, natural or physical
• There fore, juridical persons can not be workers
• In addition, to be a worker such physical person must be one who
renders physical or intellectual services.
• Moreover, such service is to be rendered under the authority of the
employer

Part 1 Ethiopian Labour law by N.H 8/16/2025

2.1.2 Distinction between a Worker and Other Similar Terms
A. Worker vs. Agent
• Source of Authority:
• According to Article 2179 of the Civil Code of Ethiopia, the source
of authoring of the agent could be a law or contract, whereas the
source of employment relationship or the worker’s source of
authority is only a contract.
• Under whose name the service is rendered:
• the agent renders service in the name of the employer i.e. the
principal. But such is not the case for the worker. Though the
service he renders is in the interests of the employer, the worker
always provides service in his own name.
• Wage:
• wage is an element of an employment relationship. So, we cannot
get a “worker” who serves for free. But, remuneration is not so
essential in agent – principal relationship, as we don’t find this
element in the definition of Agency.
• Personality
Part 1 Ethiopian Labour law by N.H 8/16/2025
 Worker Vs Contractor
• Direction
• The contractor assumes responsibility not under the direction of the
client( independence of the contractor). Where as the worker
perform his/her activity under the direction of the employer.
• Source of authority
• emanates from contract and remuneration is an element for both. no
volunteer engagement under both relationships
2.1.3 Who is Employer
• Employer is a person or an undertaking that employs one or more
persons in accordance with Art 2(1) and Art 2(2) of the Labour
Proclamation No 1156/2019 respectively
• Undertaking is also defined under sub-articles 2 of Article -2 to
mean “Any entity established under a unified management for the
purpose of carrying on any commercial, industrial, agricultural,
construction or any other lawful activity.”
• Thus, an employer can be a physical/natural person or an entity such
Part 1 Ethiopian Labour law by N.H 8/16/2025
as Business Company, factory and the like.
 2.2. Exclusions
1.Outright / Total exclusions
• The scope of application of the new proclamation is defined by Article 3.
• Under Art 3(1), the law provides that the “proclamation shall be applicable to
employment relations based on a contract of employment between a worker and
an employer”.
• But, Art 3 (2), the law excludes some lists of employment relationships from the
coverage of the Proclamation.
• This proclamation shall not be applicable to the following employment relations
arising out of a contract of employment:
a “contracts for the purpose of upbringing, treatment, care or rehabilitation“
b. contracts for the purpose of educating or training other than apprentice:
c. Where the employer is managerial employee
d. Contract of personal service
e. contract relating to a person who performs such as members of armed force ,
members of the police force ,employees of state administration , judge of court
of law
f. Contract relating to a person who performs an act of consideration at his own
business or professional responsibility
Part 1 Ethiopian Labour law by N.H 8/16/2025
2. Conditional /situational exclusions
• Article 3(3-a) of the Proclamation talks about the Ethiopian citizens
who are working for diplomatic missions or international
organizations.
• There are three possible laws that would regulate the employment
relations between Ethiopia citizens and those organs. These are:
￭ international conventions to which Ethiopia is a signatory,
￭ a regulations issued for that purpose by the council of
ministers
￭ in the absence of such an international convention or a
council of minister’s regulations, the Labour Proclamation.
• Therefore, the exclusion of these employees is conditional upon the
ratification or issuance of international conventions or council of
Ministers Regulations that address the employment.
• For further , please refer Art 3(1) ,(2) and Art 3(3) of the
proclamation No. 1156/2019

Part 1 Ethiopian Labour law by N.H 8/16/2025

 3. Contract of Employment
• Contract of employment is the first and mandatory step to words
establishing an employment relationship between an employer and a
worker.
• Art 4(1) defines, “A contract of employment shall be deemed
formed where a natural person agrees directly/indirectly to perform
work for and under the authority of an employer for a definite or
indefinite period or piece of work in consideration for wage
• direction/authority of an employer
• Wage
• duration of engagement for definite to or indefinite period
• employee and Employer are cumulatively met that a contract of
employment is deemed to be, formed.

Part 1 Ethiopian Labour law by N.H 8/16/2025

3.1 Formality requirements for employment contract :
I. consent : Article 1079 of the civil code , 1680 (1)
II. Capacity: 18 cc, 14 old lab prco. 15 new proc. Art 89(1)
III. Form: the new Lab, Proc 1156/2029 Art. 5 provides that
“Unless otherwise provided by law, a contract of employment shall not
be subject to any special form.”
• The principle here is “freedom of form” and form is required only
when deviations by the law are found.
• as an illustration to this we can take article 11(3) which orders a
written agreement on probation
apprenticeship is to be made in writing (Article 48 (3)
IV. Object of the contract
• The rule under article 4(4) of the Labour Proclamation
No.1156/2019 which reads “A contract of employment shall not be
concluded for the performance of unlawful or immoral activities”

Part 1 Ethiopian Labour law by N.H 8/16/2025

 3.2. Duration of Contract of Employment
• Employment contracts can be categorized in to two classes as
definite period and indefinite period.
• Article 9.. “ Any contract of employment shall be deemed have
been concluded for an indefinite period except for those provided
for under Article10 here under”
• Article 10 /1/ “A contract of employment may be concluded for a
definite period or for piece work in the case of:…
• if the contract is silent about the duration of the contract, the
contract will be presumed to have been concluded for indefinite
period as per Article 4(3) of Labour proclamation.
• The second line of interpretation, on the other hand, is that the
duration of the contract is determined by the nature or situation
of the work for which a worker is employed

Part 1 Ethiopian Labour law by N.H 8/16/2025

3.3 Probationary Employment

• This period is a period that enables both the worker and employer to
determine each other’s suitability (read Article 11(1).
• As opposed to formation of contract of employment which is a
mandatory state for employment relations,
• the maximum ceiling is determined by Article 11(3)
• the maximum duration they can stipulate in the contract is not more
than 60 days.

Part 1 Ethiopian Labour law by N.H 8/16/2025

 3.4 Obligations of The Parties
3.4.1 Obligations of the Employer
Article 12 talks about positive obligations or obligations to do of the
employer. These are :-
i.Duty to provide work
ii.Obligation to provide tools and materials
iii.Obligation to pay wage and other remuneration and to respect the
worker dignity.
iv.Obligation to take measures protecting workers from occupational
hazards
v. Duty to give certificate of service (Art. 12(8)). Article 27(2),
vi. Other positive obligations
There are also other obligations the employer is supposed to do. The
employer is duty bound to defray the cost of medical examination

Part 1 Ethiopian Labour law by N.H 8/16/2025

 3.4.2 Obligations of the Worker
the worker is with the duty to:
1.perform in person the work specified in the contract of employment;
2.to follow instructions given by the employer based on the terms of
the contract and work rules;
3.to handle with due care all instruments and tools entrusted to him for
work;
4.to report for work always in fit mental and physical conditions;
5.to give all proper when an accident occurs or an imminent danger
threatens life or property in his place of work. Without endangering
his safety and health;
6.to inform immediately the employer any act which endangers
himself of his fellow workers or which prejudice the interests of the
undertaking; and
7.To observe the law, collective agreement, work rules and directives
issued in accordance with law.
Part 1 Ethiopian Labour law by N.H 8/16/2025
3.5.Variation and Suspension of a Contract of Employment
1. Variation of a Contract of Employment
changing work environment as a result of promotion, demotion, transfer,
change in place of work and the like, Article 15
ii. Suspension of a Contract of Employment
• Suspension of a contract of employment is a temporary interruption of
some of the obligations of the parties.
• During such period the parties would with hold their primary obligations.
• Bear in mind, suspension and the resultant interruption of such
obligations of the parties doesn't bring about the interruption of the
contract itself.
• The contract remains alive.
• There are certain grounds that may result in suspension of contract of
employment.
• These grounds are listed down under the previsions of Article 18 of the
Labour Proclamation.

Part 1 Ethiopian Labour law by N.H 8/16/2025

 • In order to have a clear understanding of the features of the six
grounds of suspension recognized by Article 18, we can classify
them in to 3 broader categories as:
a.suspension due to voluntary bilateral arrangement of the
parties on the basis of Article 18 Sub- article 1;
• Leave without pay granted by the employer upon request by the
worker
B. Public Interest Concern as a Ground for Suspension
• due to his /her assumption of socially relevant tasks
• leave of absence for the purpose of holding office in trade unions
or other social services. (art.18 (20))
C. Situations beyond the Control of the Parties as grounds for
Suspension
• Some unforeseeable situations that may happen to either of the
parties could serve as grounds for suspension of a contract of
employment. Article 18(3), and Article 18(5) and (6)
Part 1 Ethiopian Labour law by N.H 8/16/2025
3.6 Termination of Contract of Employment
• Termination is end of the employment relationship between the
worker and the employer.
• 3 broad categories of grounds for termination. These are:
1.Termination by the operation of the law (Art 24)
1/ on the completion of the work where the contract of employment is
for a specified work;
2/ up on the death of the worker;
3/ up on the retirement of the worker in accordance with the relevant
law;
4/ when the undertaking ceases operation permanently due to
bankruptcy or for any other cause;
5/ when the worker is unable to work due to partial or total permanent
in capacity

Part 1 Ethiopian Labour law by N.H 8/16/2025

2.Termination by the Agreement of the Parties (Art 25)
• Contract of emplacement comes into being by the agreement of the
parties.
• The parties have agreed to have employment relationship.
• there is no reason why the law should prohibit them from making
agreement to end their relation
• parties to contract of employment are free to agree to terminate
their contract,
• Art. 25 (1) The parties may terminate their contract of
employment by agreement, provided, however that waiver by the
worker of his rights under the law shall have no legal effect.
2)Termination by agreement shall be effective and binding on the
worker only where it is made in writing.
• Accordingly, the law demands such agreements for termination to
be made in writing.
• In addition, any prior agreement for waiver of the right to
terminate by the worker shall be null and void.
Part 1 Ethiopian Labour law by N.H 8/16/2025
3. Termination of a Contract of Employment by the Initiation of
either party
1.Termination by the initiation of the employer is also known as
dismissal
• Termination of contract of employment by the employer
• see Art 26(1 and 2) of the labour proclamation
• employment by the initiation of the employer by granting an
advance notice for the worker. Art 28
• Such dismissal on the basis of Art. 28 is, therefore, known as
ordinary dismissal.
2. When we resort to termination upon the demand of the worker
i.e. resignation.
• the termination may be conducted either with notice or without
notice, depending on the ground for termination.
• The resignation that could be held only with the grant of notice per
Art.31 is what we call ordinary resignation as opposed to extra
ordinary resignation that is automatically applied with no need of
8/16/2025
notice on the basis of Article 32.
Part 1 Ethiopian Labour law by N.H
Dismissal without Notice (Article 27)
• These are grounds attributable to unsuitable conducts of the
employee.
• Hence, the entitlement for the employer is to terminate the
contract without notice as some situations are related to the
employee’s lack of diligence, faithfulness etc.
• 27 (1) are self explanatory, students are invited you to read
them by their own.
• Articles 128 and 129 of the Proclamation, trade unions and
employers can also include the issuance of additional
dismissal grounds

Part 1 Ethiopian Labour law by N.H 8/16/2025

A. Ordinary Resignation (Article 31)
• Worker too has the right to unilaterally terminate the contract; i.e. he
is at liberty to resign.
• But, if a worker wants to terminate a contract, he can do so without
necessarily mentioning the cause.
• To be more specific, unlike the case of the employer, the law
doesn’t require having a predetermined ground for the worker’s
decision to resign.
• The only requirement imposed on the worker is to give notice of 30
days for his employer about such decision.
B. Extra-Ordinary Resignation (Art. 32)
• extra-ordinary resignation presupposes a valid ground for a lawful
termination of a contract per Article 32(1)
• The fact that the worker losses his right of automatic resignation
due to period of limitation doesn’t mean that he is obliged to be
there for long

Part 1 Ethiopian Labour law by N.H 8/16/2025

3.6 Entitlements of Lawful Termination of a Contract of Employment
• It is only when a worker is dismissed by his employer upon lawful
grounds and with the grant of an advance notice, a contract of
employment is deemed to be lawfully terminated.
• On the other hand, it is only when a worker resigns by giving an
advance notice or based on a lawful ground per Art 32 that his
resignation/ termination become lawful.
• when the parties freely agree to end their relationship or when the
contract comes to an end by the operation of the law that the parties
contract of employment ceases to operate in a lawful manner.
• Otherwise, any termination that is held on in violation of the law is
unlawful termination.
• employment ceases to operate in a lawful manner.
• However, the fact that the worker’s contract is terminated lawfully
doesn’t mean that the worker goes empty handed.

Part 1 Ethiopian Labour law by N.H 8/16/2025

 • The entitlements that are accorded for workers upon termination are
different depending on the circumstances of the case.
• Generally, the entitlements include:
• severance pay according to Articles 39 and 40
• compensation according to Article 41
• letter ( certificate) of service per Article 12(8) and
• unutilized annual leave converted in to cash on the basis of Art
77(4).
3.7. Unlawful Termination of a Contract of Employment
• any termination that falls outside of the domain of lawful
termination will automatically fall under the category of unlawful
termination.
• a dichotomy of types of unlawfulness in relation to termination as:
• substantive unlawfulness and
• procedural unlawfulness.

Part 1 Ethiopian Labour law by N.H 8/16/2025

 1. Substantive Unlawfulness. Art 42
• which is held against the grounds of termination the law
stipulates.
• termination suffers from substantive unlawfulness whenever it is
conducted without lawful grounds.
2. Procedural Unlawfulness
• procedural unlawfulness purely indicates one’s non-compliance
with the duty to give an advance notice
• It doesn’t have any relation with the existence or otherwise of a
lawful ground for termination.
• It is rather about termination with lawful groundless the legally
prescribed advance notice. Under such instances, the party has a
lawful ground to bring the contract to an end i.e. to terminate.
• but he terminates the contract without rendering notice to the
other party as the law orders.To conclude; in procedural
unlawfulness what lacks is due process.
Part 1 Ethiopian Labour law by N.H 8/16/2025
 4.1 Legality Stipulated Minimum Labour Conditions
• Minimum Labour condition is about the rules that deal with the
minimum conditions which an employer and employee should
fulfill and respect both at the time they conclude their contract and
then after in their employment relationship.
• Labour law is a law by which the state intervenes in the parties
freedom of contract.
• The rationale for such an intervention is mainly to protect the
interests of the employee.
• Pursuant to Article 2(7) of the Labour Proclamation No 1156/2019,
condition of work means the entire field of labour relation between
workers and employers including hours of work, wage, leave,
payment due to dismissal, worker health and safety compensation to
victims of employment injury, dismissal because of redundancy
grievance procedure and any other employment issues

Part 1 Ethiopian Labour law by N.H 8/16/2025

4.2. Hours of Work, Rest Period and Leaves
• There are three reasons that triggered the law to provide these aspects.
• First, they are aimed to prevent the premature deterioration of workers.
• Premature deterioration refers to the situation whereby the worker may
go out of the productive members of the society as a result of very long
hours of work through out his life.
• Secondly, they attempt to protect the workers and the society at large
from the inevitable danger of bodily injury resulted by over exhaustion
of the worker.
• The third reason for the regulation of these aspects of working conditions
by law is to give a room for workers so as to attend their personal and
social commitments.
1.To begin with working hours
• Read Articles 61 and 63
• Art 61(1) “normal hours of work” mean. It is “the time during which a
worker actually performs work or avails himself for work in accordance
with law, collective agreement or work rules.”

Part 1 Ethiopian Labour law by N.H 8/16/2025

 • The law tries two discourage over-time work at various stages.
• The first thing that the proclamation does is to prohibit overtime
work.
• By contrary reading of Article 66(3) which declares “overtime shall
be worked in cases expressly provided for under Article 67(1) of
and on the express instructions of the employer ”,we can reduce the
prohibition of overtime work, as a rule.
• The second stage the law employed so as to discourage over time
work is to restrict the circumstance in which overtime work is
permitted as an exception to the rule of Article 66(3). These
exceptional circumstances are exhaustively enumerated under
Article 67(1)
• third stage discouragement is by way of allowing a segregated rate
of payment of wages for over-time work.
• Read art. 68, 71 (2)
• The labour proclamation entitles the worker to annual leave, sick
leaves ,marriage leave, mourning leave and union leave.
Part 1 Ethiopian Labour law by N.H 8/16/2025
 4.3 Safety Working Conditions
• the Labour Proclamation has come up with safety and health rules
of two aspects:
• for prevention and for compensation.
• Preventive rules are those rules designed to prevent employment
accidents and diseases to the extent possible.
• be forced to resort to compensatory (curative) measures that are
aimed to give remedies for the worker who sustains an
employment injury.
• Art 92 and 93 Regarding prevention, the law has imposed
obligations both on the employer (Art 92) and the worker (Art-93)
• payment of compensation is not the sole post injury obligation of
the employer. Rather, there are some other measures the employer
should take/see Articles 104 and 105.
• Generally, the remedial stage of employment injury has two levels .
• The first stage is to determine the existence of liability. It would be
the employer who is predominantly liable.
Part 1 Ethiopian Labour law by N.H 8/16/2025
• the second stage of determination of the extent of liability .
Determining the existence of liability
• To establish the existence of liability of the employer, there has to
be injury in relation to employment either directly or indirectly.
• it can either be occupational accident or disease. Art.95(2)
• Extent of Liability of the Employer
• The first category of obligations of the employer consists of
medical benefits that should be extended to the worker.
• These include:-
• first aid, general and special medical care and cost of
hospitalization.
• the second category of obligations, we get payment of cash
benefits recognized under the Labour Proclamation.
• For a general understanding read Article 104

Part 1 Ethiopian Labour law by N.H 8/16/2025

These cash benefits include:
1 Periodic payments
2 Dependent's benefits, and
3 Disablement benefits
Article 102(1) the degree of permanent partial or total disablement has to
be fixed by a competent medical board
• Periodic payment is aimed at enabling the worker live in the condition
he had before sustaining the injury.
• The periodic payment of the worker may cease whenever one of the
following takes place,
1.When the worker is medically certified to be no longer disabled,
2.On the day the worker is entitled to disablement pension or gratuity or
3.Twelve months from the date the worker stopped work.
The periodic payment of the worker may cease whenever one of the
following takes place,
1.When the worker is medically certified to be no longer disabled,
2.On the day the worker is entitled to disablement pension or
gratuity or
3.Twelve
Part months
1 Ethiopian Labour law by N.H from the date the worker stopped work.
8/16/2025
 4.4 Special Categories of Workers
• our labour law recognizes and provides for special rule that regulate some
special contracts of employment.
• These special employment contracts are contracts of employment with
1.Apprentice workers Art 48-52/
2.Young workers Art 89-91/
3.Female workers Art 87 and 88 and
4.Foreigners employed in Ethiopia /article 176
1. Apprentice Workers
• to give the apprentice complete and systematic training
• the employer that are important to acquire the skill,
• The employer may give remuneration for the apprentice.
• But such remuneration is not wage; it is instead an incidental payment in the
form of stipend pay.
2. Young workers
Age 15
young workers that can be categorized into three.
1.Limits as to types of works ;
2. Limits as regular working hours ,and
3. Limits as to particularly working time
Part 1 Ethiopian Labour law by N.H 8/16/2025
 3. Female worker
• female workers were discriminated both at recruitment and
payment level.
• they are given special treatments for equal employment
opportunities and for equal pay for equal work as well.
• There special biological constitution also warrants special treatment
for female workers.
• The Ethiopia labour law too accords special protection for female
workers.
• The first way of protection is a sex (gender)based way of protection
which gives special treatment to all female workers .
• all female workers Without any discrimination among them called
horizontal treatment .
• The second modality of protection applied by our labour law is what
is known as particular situation protection .
• it applies for female workers who are at particular situation like
when there is pregnancy or maternity
Part 1 Ethiopian Labour law by N.H 8/16/2025
 Labour dispute resolutions
• the central concern of Employment and/or Labour Law is to create
industrial peace.
• Industrial peace, on the other hand, can hardly be achieved unless
and until labour relationships are supported by the appropriate and
efficient dispute resolution machineries.
• Industrial actions, thus, are one sort of dispute resolution
mechanisms whereby parties may use it only after making the
possible efforts to resolve their dispute in a peaceful process.
• The recognized dispute resolution mechanisms under our law,
• in general, could be classified into two as “Amicable” and
“Judicial” settlement mechanisms.
• Under the first section that talks about the amicable settlement
mechanism, you will see the different ways of dispute resolution
where parties may mutually seek to find solution to their dispute
through the help of a neutral third party such as conciliator,
mediator or arbitrator.
Part 1 Ethiopian Labour law by N.H 8/16/2025
 • The second section deals with the judicial dispute settlement
mechanisms which come, often, after where both parties fail to find
solution through the amicable process.
5.1 The Amicable Dispute Settlement Mechanisms
• dispute with the assistance of a neutral third party--mediator,
conciliator or arbitrator.
• many countries make legislative provisions that may make the
amicable settlement mechanisms as compulsory or voluntary
procedures depending upon the impact that the dispute may have on
the parties or the public at large.
5.1.1 Conciliation / Mediation
• the role of the conciliator is to assist the parties to reach their own
negotiated settlement and he may make suggestions as appropriate.
• The mediator, on the other hand, proceeds by way of conciliation but
in addition is prepared and expected to make his own formal
proposal or recommendation which may be accepted as a solution to
the dispute
Part 1 Ethiopian Labour law by N.H 8/16/2025
The conciliator or mediator may have an advisory role on the content
of the dispute or the out come of its resolution, but not a determinative
role.
note two important points
1. requires the consent of both parties to a dispute
2. not decisive or binding on the parties.
without the need for appeal
5.1.2 Arbitration
• none of the parties to a dispute are free to reject the decision passed
by the arbitrator.
• arbitration procedures are usually more formal than those which
apply to conciliation / mediation/
• In general, the recognized judicial dispute resolution organs under
our law can be classified into two as the labour relations board and
courts.
Part 1 Ethiopian Labour law by N.H 8/16/2025
5.2.1 Labour Relations Board
• for maintaining smooth relation ships between the workingmen and the
employer--and thereby keeping industrial harmony
• In its role as a labour dispute resolution machinery, the first step to be
taken by the Board is to make a strong effort to help parties to reach on
mutually agreed settlement of the dispute
• In general, the recognized judicial dispute resolution organs under our
law can be classified into two as the labour relations board and courts.
• when the effort of the Board to conciliate the parties becomes futile, the
Board proceeds to resolve the dispute through adjudication.
• or power of the Board to render a final and binding decision on the
disputed issues.
• The adjudication role of the Board at this stage can be assimilated with
compulsory arbitration for having its own procedural rules distinct from
that of ordinary courts.
• the Board is endowed with its own rules of evidence, hearing of cases
and rendering decisions to be observed throughout the whole process of
adjudication.
Part 1 Ethiopian Labour law by N.H 8/16/2025
• when the effort of the Board to conciliate the parties becomes
futile, the Board proceeds to resolve the dispute through
adjudication.
• or power of the Board to render a final and binding decision on the
disputed issues.
• The adjudication role of the Board at this stage can be assimilated
with compulsory arbitration for having its own procedural rules
distinct from that of ordinary courts.
• the Board is endowed with its own rules of evidence, hearing of
cases and rendering decisions to be observed throughout the whole
process of adjudication.

Part 1 Ethiopian Labour law by N.H 8/16/2025

• when the effort of the Board to conciliate the parties
becomes futile, the Board proceeds to resolve the dispute
through adjudication.
• or power of the Board to render a final and binding
decision on the disputed issues.
• The adjudication role of the Board at this stage can be
assimilated with compulsory arbitration for having its
own procedural rules distinct from that of ordinary
courts.
• the Board is endowed with its own rules of evidence,
hearing of cases and rendering decisions to be observed
throughout the whole process of adjudication.

Part 1 Ethiopian Labour law by N.H 8/16/2025

5.2.2. Labour courts
Our law, thus, recognizes for the establishment of labour courts within
civil courts at various level across the country.
three levels of labour courts established at regional and federal level
through out the country. These are
i) Labour Division of Regional First Instance (woreda) court
ii) Labour Division of Regional Appellate Court (high Court)
iii) Labour Division of Federal high Court (Regional Supreme Court)

Part 1 Ethiopian Labour law by N.H 8/16/2025

Part 1 Ethiopian Labour law by N.H 8/16/2025
Part 1 Ethiopian Labour law by N.H 8/16/2025