Labour Proclamation No. 377

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  • Year:
  • Country: Ethiopia
  • Language: English
  • Document Type: Domestic Law or Regulation
  • Topic:

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m nce PROCLAMATION NO. 377/2003
WlffiREAS, it is esential to ensure that worker-em-
ployer relations. are governed by the basic principles of rights
and obligations with a view to enabling workers and
employers to maintain industrial peace and work in the spirit
of harmony and cooperation towards the all-round develop- mentofourcountry; WHEREAS, it has been found necessary to guarantee
the right of workers and employers to form their respective
associations and to engage, through their lawful elected
representatives, in collective barganing, as well as to lay down
the procedure for the expeditious settlement of Labour
disputes, which arise between workers and employers; WHEREAS, it is necessary to strengthen and define by
law the powers and duties of the organ charged with the
responsibility of inspecting, in accordance with the law,
labour administration, particularly l”,bour conditions, oc-
cupational safety, health and work environment; WHEREAS, it has been found necessary to revise the
existing Labour law providing for the basic principles which govern worker-employer relations and for labour conditions
taking into account the political, economic and social policies
of the Government and in conformity with the international
conventions and other legal commitments to which Ethiopia is a party with a view to translating into practice the objectives
referred to above; NOW, THEREFORE, in accordance with Sub-Article 1
and 3 of Article 55 of the Constitution of the Federal
Democratic Republic of Ethiopia, it is hereby proclaimed as
Negarit G.P.O.Box 80,001

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Federal Negarit Gazeta
-No. 12
26111February 2004-Page 2454
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1. Short Title
This Proclamation may be cited as the “Labour
Proclamation No. 377/2003.”
2. Definitions
In this Proclamation:
1) “employer” means a person or an undertaking who
employs one or more persons in accordance with
Article 4 of this Proclamation;
2) “undertaking” means any entity established under a
united management for the purpose of carrying onany commercial, industrial, agricultural, construc-
tion or any other lawful activity;
Any branch carrying on the activities of an under-
taking which is designated separately and which
enjoys operational or organizational autonomy shall
be deemed to be a separate undertaking;
3) “worker” means a person who has an employment
relationship with an employer in accordance withArticle 4 of this Proclamation;
4) “minister” or “ministry” means the Minister or
Ministry of Labour and Social Affairs respectivelyor Bureau of Regional Labour and Social Affairs.
5) “work rules” means, subject to the provisions ofthis
Proclamation and other relevant laws, an internal
ruels which govern working hours, rest period,
payment of wages and the method’s of measuringwork done, maintenance of safety and the prevention”,
of accidents, disciplinary measures and its im-
plementation as well as other conditions of work;
6) “conditions of work” means the entire filed of
relations between workers and employers and shallalso include hours of work, wage, leave, payments
due to dismissal, workers health and safety, compen-sation to victims of employment injure, dismissal
because of redundency, grievance procedure and any other similar matters.
7)’ “Region” means any region as per Article47 ofthe
Constitution of Federal Democratic Republic of
Ethiopia~ For the purpose of this Proclamtion it also
include Addis Ababa and Dire Dawa Adminis-
3. Scope of Application
1) Without prejudice to Sub-Article (2) ofthis Article,
this Proclamation shall be applicable to employment
relations based on a contract of employment thatexist between a worker and and an employer.
2) 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, treat-
ment, care or rehabilitation;
(b) contracts for the purpose of educating or
training other than apprentice;
(c) managerial employee who is vested with
powers to lay down and execute management
policies by law or by the delegation of theemployer depending on the type of activities
of the undertaking with or without the
aforementioned powers an individual who is
vested with the power to hire, transfer, sus-
pend, layoff, assign or take disciplinary
measures against employees and include
professionals who recommend measures to be
taken by the employer regarding managerialissues by using his independent judgement in
the interest of the employer;

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-No. 12 26111February 2004-Page 2455
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%. (d) contracts of personal service for non-profit
making purposes;
(e) contracts refating to persons such as members of
the Armed Force, members of the Police Force,
employees of state administration, judges of
courts of law, prosecutors and others whose
employment relationship is governed by special
(f) contracts relating to a person who performes an
act, for consideration, at his own business or
profesional responsibility.
3. Notwithstanding the provisions of Sub-Artice (1) of
this Article:
(a) unless the Council of Ministers by regulations
decides, or an itnernational agreement to which
Ethiopia is a signatory provides otherwise, employment relation between Ethiopian
citizens and foreign diplomatic missions or
international orgamzations operating within the
territory of EthIopia shall be governed by this
(b) the Council of Ministers may, by regulations,
determine the inapplicability of this
Proclamation on employment relations es- tablished by religious or charitable or-ganizations:
c) the Council of Ministers shall issue regulation
governing conditions of work applicable to
personal services.
Employment Relations
Contract of Employment SECTION ONE
Formation of Contract of Employment
4. Element ofa Contract ofEmployment
1) A contract of employment shall be deemed formed
where a person agrees directly or indirectly to
perform work for and under the authority of an
employer for a difinite or indefinte period ot piece
work in return for wage.
2) A contract of employment shall be stipulated clearly
and in such manner as that the parties are left with no
uncertainty as to their respective rights and
obligations under the terms thereof.
3) A contract of employment shall specify the type of
employment and place of work the rate of wages,
method of calculation thereof, manner and interval
of payment and duration of the contract.
4) A contract of employment shall not be concluded for
the performance of unlawful or immoral activities.
5) The contract of employment shall not lay down less
favourable conditions for the employee than those
provided for by law, collective agreement or work
rules. “‘.
5. Form
Unless otherwise provided by law, a contract of em-
ployment shall not be subject to any special form.
6. Contract ofEmployment made in writing
Subject to the provisions of the relevant law, a written
contract of employment shall specify the following:
1) the name and address of the employer;
2) the name, age, address and work card number, if any,
of the worker;
3) the agreement of the contracting parties made in
accordance with Article 4 Sub-Article (3) of this
Proclamation; and
4) the signature of the contracting parties.
7. Contract ofEmployment Not Made in writing
1. Where the contract of employment-is not made in
written form, the employer shall, within 15 days
from the conclusion of the contract, give the worker a written and signed statement containing the
requirements specified under Article 6 of this

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/./:,. 1-‘flA:: 2) If the written statement referred to in Sub-Article (1)
of this Article is not wholly or partly objected to by
the worker within 15 days from the date of receipt, it
shall be deemed a contract of employment concluded
between the worker and the employer.
8. Failure to Comply Condition
Failure to comply with the requirements of the provisions
of Article 6 or 7shall not deprive the worker of his rights
under this Proclamation.
Duration of Contract of Employment
9. Contract of Employment for an Indefinite period
Any contract of employment shall be deemed to have
been concluded for an indefinite period except for those
provided for under Article 10 hereunder.
10. Contract of Employment for Definite Period or Piece
1) A contract of employment may be concluded for a
definite period or for piecework in the case of:
(a) the performance of specified piece work for
which the employee is employed;
(b) the replacement of a worker who is temporarily
absent due to leave or sickness or other causes;
(c) the performance of work in the event of
abnormal pressure of work;
(d) 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;
(e) an irregular work which relates to permanent
part of the work of an employer but performed
on an irregular intervals;
(f) 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;
(g) an occasional work which does not form part of
the permanent activity of the employer but
which is done intermittently;
(h) the temporary placement of a worker who has
suddenly and permanently vacated from a post
having a contract of an indefinite period;
(i) the temporary placement of a worker to fill a
vacant position in the period between the study
of the organizational structure and its implemen-
2. A contract of employment under Sub-Article l(h)
and (i) of this Article shall not exced 45 consecutive
days and shall be done only once.
11. Probation Perio!
1) A person may be employed for a probation period for
the purpose of testing his suitablity to a post in which
he is expected to be assigned.
2) A worker re-employed by the same employer for the
same job shall not subject to probation.
3) When the parties agree to have a probation period,
the agreement shall be made in writing, In such a
case, the probation period shall not exceed forty-
five(45) consecutive days.
4) Unless the law or work rules or collective agreement
provides otherwise, the worker shall have during the
probation period, the same rights and obligations
that a worker who has completed his probation
period has.
5) If the worker proves to be unfit for the job during his
probation, the employer can terminate the contract of
employment without notice and being obliged to pay
severance payor compensation;
6) A worker on probation may terminate his contract of
employment without notice. “‘.

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:”/Jtlfl1’1 f67t10C:: 7) If the worker continues to work after the expiry of
the probation period, a contract of employment for
the intended period or type of work shall be deemed
to have been concluded from the beginning of the
probation period.
Obligation of the Parties
12. Obligations of an Employer
An employer shall in addition to special stipulations in
the contract of employment have the following
1 (a) to provide work to the worker in accordance with the contract of employment and
(b) unless otherwise stipulated in the contract of
employment, to provide him with implements
and materials necessary for the perforamance of
the work; .
2) to pay the worker wages and other emoluments in
accordance with this Proclamation or the collective
3) to respect the worker’s human dignity;
4) to take all the necessary occupational safety and
health measures and to abide by the standards and
directives to be given by the appropriate authoritiesin respect of these measures;
5) to defray the cost of medical examination, of the
worker whenever such medical examination is
required by law or the approriate authority.
6) to keep a register containing the relvant particulars
specified in Article 6, hereof weekly rest days, public
holidays and leave utilized by the worker, health
conditions and employment injury of the worker and
other particulars required by the Ministry;
7) upon termination of a contract of employment or
whenever the worker so requests, to provide the
worker, free of charge, with a certifcate stating the
type of work he performed, the length of service and
the wages he was earning;
8) to observe the provisions of this Proclamation,
collective agreement, work rules, directives and
orders issued in accordance with law, and.
9) to record and keep of information as required by this
Proclamation, and any other information necessary
for the Ministry to carryout its powers and duties,and submit same within a reasonable time when
requested by the Ministry.
13. Obligations of the Workers
Every worker shall have the following obligations:
1) to 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
5) to give all proper aid when an accident occurs or an
imminent danger threatens life or property in his
place of work without endangering his safety and
6) to inform immediately the employer any act which
endangers himself or his fellow workers or which
prejudice the interests of the undertakings;
7) to observe the provisions of this Proclamation,
collective agreement, work rules and directives
issued in accordance with the law.

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“f,If’}ljO;If’iljO 14.
Unlawful Activity
1. It shall be unlawful for an employer to: (a) impede the worker in any manner in the
exercise of his rights or take any measureagainst him because he exercises his right;
(b) discriminate against female workers, in mat-
ters of remuneration, on the ground of their
(c) terminate a contract of employment contrary
to the provisions of this Proclamation;
(d) coerce any worker by force or in any other
manner to join or not to join or to cease to be a
member of a trade union or to vote for or
against any given candidate in elections for
trade union offices;
(e) require any worker to execute any work which
is hazardous to his life;
(t) discriminate between workers on the basis of
nationality, sex, religion, political outlook or
any other conditions.
2. It shall be unlawful for a worker to: (a) intentionally commit in the place of work any
act which endangers life and proprty;
(b) take away property from the work place
without the express authorization of the em-
(c) report for work in a state of intoxication;
(d) except for mv / AIDS test, refuse to submit “‘,
himself for medical examination when
required by law or by the employer for good
(e) refuse to observe sfety and accident preven-
tion rules and to take the necessary safety
:;Modification of Contract of Employment
15. Conditions of Modification
Conditions of a contract of employment which are not
determined under this Prroclamation, may be modified
. by: 1) collective agreement;
2) work rules issued in accordance with this
Proclamation; or
3) written agreement of the parties.
16. Amalgamation, Division ar Transfer of Ownership
Without prejudice to Article 15 of this Proclamation amalgamation or division or transfer of ownership of an
undertaking shall not have the effect of modifying a
contract of employment.
Temporary Susppension of Right
and Obligation
Arising out of Contract of Employment
17. General 1) Rights and obligations arising out of a contract of employment may be temporarily suspended in themanner provided for in this section.
2) Temporary suspension of rights and obligations
arising out of a contract of employment shall not
imply termination or interruption of the contract
provided, however, a contract of employment shall
interrupt the obligation of;

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oolPl:t- tDf,9″ O..,.Ol:t-it9″9″.,:t- tDf,9″ O.,.tp’Pf.
m1lj~’ OOlJ.1.l6Jit9″9″.,:t-: f.1f’iA; (a) the worker to perform the work;
(b) the employer to pay wages, other benefits and
allowances unless otherwise provided for in this
Proclamation or in the collective agreement. ..
18. Grounds for Suspension
The following shall be valid grounds for the suspension, in accordance with Article 17, of this proclamation: 1) leave without pay granted by the employer upon
request by the worker;
2) leave of absence for the purpose of holding office in
trade unions or other social services;
3) detention for a period not exceeding 30 days,
provided that the employer is notified within 10days or is supposed to know of the detention;
4) national call;
5) full or partially suspension due to force majeure of
the activities of the employer for a period of not less
than 10 consecutive days;
6) financial problems, not attributable to the fault of the
employer, that requires the suspension of the ac-
tivities of the employer for not less than 10
consecutive days.
19. Duty to Inform
When rights and obligations arising out of a contract of
employment are suspended in accordance with Sub-ar-
ticle 5 or 6 of Article 18, the employer shall inform the
Ministry in writing within 3 days of the occurrence of the”
ground for suspension. ‘
20. Determination by the Ministry
1) The Ministry shall determine the existence of a good
cause for suspension within 3 days after receipt of
the written information pursuant to Article 19.
2) Where the Ministry finds that there is no good cause
for suspension it shall order the resumption of thework and payment for the days on which the worker
was suspended.
3) The party who is aggrieved by the decision of the
Minister in accordance with Sub-Articles (1) and (2)of this Article may, within five working days, appeal
to the competent labour court.
21. Effect of Confirmation or Authorization of Suspensioon
1) Where the Ministry confirms or proves the existence of good causes for suspension, it shall fix the
duration of the suspension, provided, however, that
the duration shall not exceed a maximum of90 days.
2) Where the Ministry is convinced that the employer
cannot resume its activities with the maximum
period set under Sub-Article (1) of this Article, the
worker shall be entitled to the benefits specified
under Article 39 and 44.
22. Effects of Expiry of the Period of Suspension
The worker shall report for work on the working day
following the date of expiry of suspension; and the employer shall reinstate a worker who so reports for
Termination of Employment Relations
23. General
1) A contract of employment shall only be terminated upon initiation by the employer or worker and in
accordance with the provisions of the law or a
collective agreement or by the agreement of the two

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il:J>11.;JC “”1-~T ‘1″:fm- 9″h11″”f 1I:Ft.*~1′
~. f”7.h.,.I-T ffPt- m-A1 1″7*~1’ “’10. 9″h11″”f
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(0) flPt-“‘~m- 1Ith.~(}11 : ~;t- : th~”7Cf:”
f TI-l;t} /1ool }hT: f ;J1I:F o-).;t-: HC :
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O”7.h.,.I-T 1I:F ~m-::
V) 11Oct 9″h11Tc; “7i1m1+ct1 hf”‘(}mm-
(warning) Ooof.;J19” ffPt-(}f}T 1 “7hOC;
t) Ooof.~m- t19″i1T ffPt- +c;T m~9″ 0111:
mc m-i11′ Om:”””m- t1fPC
ffPt- +c;:,. m~9”
0111: f}OOT m-i11’
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+c;T 1tOct 9″h11T hfPt- oo:”~T ;
th) h1f.1’~-I: h1lf.TOFt-m-“~ f”7;t-tAm~9″
f”7fi£1’OCOC.,…,f1C ooL’l.9”; 2. The amalgamation or division or transfer of owner-
ship of an undertaking shall not have the effect of
terminating a contract of employment.
Termination of Contract of Employment
by Law or by Agreement
24. Termination ofcontract ofEmployment by Law
A contract of employment shall terminate on the
following grounds: 1) on the expiry of the period or on the completion of
the work where the contract of employment is for a
definite period or piece work.
2) upon the death of the worker.
3) upon the retirement of the worker in accordance
with the relevant law.
4) when the undertaking ceases operation permanently
for due to bankruptcy or for any other cause.
5) when the worker is unable to work due to partial or
total permanent incapacity.
25. Termination ofcontract ofEmployment by Agreement
1) The parties may ~eminate their contract of em-
ployment by agreement provided, however, thatwaiver by the worker of any 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 inwriting.
Termination ofcontract ofEmployment at the Request
of the Contracting Parties
Termination ofcontract ofEmployment by the Employer
26. General
1) A contract of employment may only be terminated
where there are grounds connected with the
worker’s conduct or with objective circumstances
arising out of his ability to do his work or the
organizational or operational requirements of the
2) The following shall not be deemed to constitute
legitimate grounds for the termination of a contract
of employment: (a) his membership in a trade union or his
participation in its lawful activities.
(b) his seeking or holding office as a worker’s
(c) his submission of grievance against the em-
ployer his participation in judicial or other
. proceedings;
(d) his nationality, sex, religion, political outlook,
martial status, race, colour, family respon-
sibility, pregnancy, lineage line & desendents
from an . .
27. Termination ofcontract ofemployment without Notice
1) Unless otherwise determined by a collective
agreement ,a contract of employment shall be ter-
minated without notice only on the following
grounds;(a) repeated and unjustified tardiness despite war-
ning to that effect;
(b) absence from work without good cause for a
period of five consecutive working days or tenworking days in any period of one month or
. thirty working days in a year;
(c) deceitful or fradulent conduct in carrying out
his duties having regard to the gravity of the
case; .

‘I~’ !{if.!ift.?i
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4!’I’C I~ VII’!:’} IJ;
“”} I!tr1:& ‘HI”. Federal Negarit Gazeta
-No. 12 26thFebruary 2004-Page 2461
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lD-1.-:” f,IfCj IA:: SUB-SECTION TWO
Termination by the Worker
31. Termination of Contract of Employment with Notice
Without prejudice to Article 32 of this Proclamation, any worker who has completed his probation period, may, by
giving thirty days prior notice to the employer, terminate
his contract of employment.
32. Termination of Contract of Employment without Notice
1) The following shall be good cause to terminate a
contract of employment without notice;
(a) if the employer has committed against the
worker any act contrary to his human dignity
and morals or other acts punishable under the
Penal Code;
(b) if, in the case of imminent danger threatning the
worker’s safety or health, the employer, having
been made aware of such danger, failed to act within the time limit in accordance with the
early warning given by the competent authority
or appropriate trade union or the worker himself
to avert the danger;
(c) if the employer has repeatedly failed to fulfill
his basic obligations towards the worker as
prescribed under this Proclamation, collective agreements, work rules or other relevant laws.
2. Where a worker terminate his contract of em- ‘-‘.
ployment for the reasons referred to under SubArticle (1) of this Article, he shall inform the
employer in writting the reasons for termination and
the date on which the termination is to take effect.
33. Period of Limitation
A worker’s right to terminate his contract of employment
in accordance with Sub-Article (1) of Article 32 shall
lapse after fifteen working days from the date on which
the act occurred or ceased to exist.
Common Provisions with Respect to
Termination of Contract of Employment SECTION ONE
Notice to Terminate a Contract of Employment
34. Procedure for Giving Notice
1) Notice of termination required under the provisions
of this Proclamation shall be in writing. The notice
shall specify the reasons for the termination of the
contrat and the date on which the termination shall
take effect.
2) Notice of termination by the employer or his
representative shall be handed to the worker in
person. Where it is not possible to find the worker or
he refuses to receive the notice, it shall be affixed on
the notice board in the work place of the worker for10 consecutive days.
3) Notice of termination by the worker shall be handed
to the employer or his representative or delivered to
his office.
4) Notice of termination given to a worker by an
employer in accordance with Article 17 during the
time in which the contract of employment is suspen-
ded shall be null and void.

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~1’CIIIfll’I;”” I:s
+1 Iitfii ‘H”.Federal Negarit Gazeta- No. 12 26thFebruary 2004-Page 2464
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m-ll”, he!) .,.C;T
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9″‘)&-~ h&-T A¥- OJ-to’;f-
“C~ h’)J.’:
(I(I. Tfl11/.lP &- P’ &- OJ-A
‘?I~’ fOJ-1-
li’ h’).(-(aOJ-
(I&-(a. (l.Tm1-9″&-(a. (loul.mOJ- ibl (1:J-
hlP&CD- (I”‘1′:J-itf-,~lf)ml.CD-mf.9″ itf.ou&-CD-
h’)1.- P’&-HtD.’}-C thlP&OJ- touP’&-:’-C; hlP&CD-
t.,.IP&-CD- P’&-y.oum1′ toutJt_A I’t.llD’ioo-(lC1.T
fl11/.lPt- P’t- OJ-A f.oulPl.:J-AII 3) Notwithstanding sub-article 2 of this Article, the
labour dispute settlement tribunal may order the
dismissal of the worker upon payment of compen-
sation even if the worker demands re-instatment
where it belives that the continui1.tion of the par-
ticular worker employer relations, by its nature is likely to give rise to serious difficulties. Similarly,
where a worker who, after obtaining judgment of re-
instatement in his favour decline to be re-instated,
the labour settlement tribunal may order the dismis-
sal of the worker upon payment of full compensation
or fair compensation for the inconvenience he
incurred having regard to the nature of the work and
other circumstances of the case.
4) The compensation to be paid under sub-articles (1),
(2) or (3) of this Article shall, in addition to the
severance pay referred to in Articles 39-40, be as
follows; This provision shall also apply to a worker
convered by the relevant pension law.
a) one hundred eighty times the average daily
wages and a sum equal to his remuneration for
the appropriate notice period in accordance with
Article 44 in the case of unlawful termination of
a contract of employment for an indefinite
b) a sum equal to his wages which the worker
would have obtained if the contract of em-
ployment has lasted upto its date of expiry Or
completion provided, however, that such com-‘” r
pensation shall not exceed one hundered eighty times the average daily wage in the case of
unlawful termination of a contract of em-
ployment for a definite period or for piece work.
5) Where the first intance court orders the reinstatement
of the worker in accordance with Sub-Articles (1)
and (2) of this Article, the court shall order the
payment of back -pay not exceeding 6 months wage.
If the decision of reinstatement is confirmed by the
appellate court it shall order payment ofback pay not
exceeding one year.
44. Exceptions
Notwithstanding the provisions of Article 43, non-com-
pliance by the employer with the notice requirementsspecified under Article 35 shall only result in the
payment by the employer, wages in Leu of the notice
period, in addition to any other compensation provided
for under Article 40 of this Proclamation.
45. Liability of the Worker to pay compensation
1) A worker who terminates his contract of em-
ployment contrary to the provisions of Article 31 or35(2) shall be liable to pay compensation to the
2) The compensation payable by the worker in accor-
dance with Sub-Article (1) of this Article, shall not
exceed thirty days wages of the worker.
Home Work Contract
46. Formation of Contract
1) There shall be a home work contract when a person
habitually performs work for anemployer in his
home or any other place freely chosen by him in
return for wages without any direct supervision or
direction by the employer.

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Federal Negarit Gazeta
-No. 12 261hFebruary 2004-Page 2467
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Ii’ fOO-f
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I’ Ooo-!
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r. r~m- fOl/.h’i”lD’}OT o-~;J-II
2′ f.,..,.,r-“f
Ii’ tOf/-n.
fOO-!oPfAoP1f T9″UCi:’} O”‘-;JT .,.h;J-Tt°
001/.111 toP~9” 1’lT f1.C;JfA II
I’ hlPt.m-
hoo-!oPfAoP1fm- T9″UCT ;JC “”}1-~T
Oh,tm-‘i” tT9″UCi:9″ OOf/f,m:”9″ r~”f.
tOf/-n.’} hf,oP.(-Om-9″ II
21i’ lltm-I- oP*l1′
Ii’ foo-!
oPfAoP1f m-I- OOl/.h”-I-T o-~;J-9′”f f,*lllJfA I
V) too-! oPfAoP1fm- T9″UC”‘- f”‘lD{) ‘1 ‘lit
t) 0Of/’}~m-9″ “””’f,lD1′} Of/llm’}.,.t!
th) tOf/-n. !tOf/llm’}.,.t! m-I-‘} l1.!*C1’II 2) An agrc.ment for the sale of raw materials or tools by
an employer to a home worker and the resale of the
products to the employer or any other similar arrangements made between the employer and the
home worker shall be deemed a homework contract.
3) The contract concluded between a home worker and
an employer shall be deemed to be made for a
definite period or piece-work.
4) The Minister may, in consultation with the concer-
ned organs, prescribed by directives the provisions
of this Proclamation that shall apply to home workers and manner of their applications.
47. Keeping of Records
An employer who employs a worker on the basis of a
home work contract shall keep a register containing the
following and other relevant particulars;
1) full name, age, marital status and address of the
2) the address where the work is to be carried out;
3) the type, price, quality and quantity of material
supplied by the employer to the worker;
4) the type of work, quality and quantity ordered;
5) the time and place of delivery of the product or
6) amount and manner of payment.
Contract of Apprenticeship
48. Formation of Contract
1) There shall be a contract of apprenticeship when an employer agrees to give a person complete and
systematic training in a given occupation related to
the function of his undertaking in accordance with the skills of the trade and the person in return agrees
to obey the instruction given to carry out the training
and works related thereto.
2) The contract of apprenticeship shall be concluded
with the person whose age is not less than fourteen
3) The contract of apprenticeship and its modifications
shall be valid only where it is made in writing and
attested to by the Ministry.
.49. Contents of the Contract
A contract of apprenticeship shall specify at least the
1) The nature and duration of the training of appren- ticeship;
2) the remuneration to be paid during the training;
3) the conditions of work.
50. Obligations of the Parties
1) The apprentice shall diligently follow the training and endeavour to complete it successfully.
2) The employer shall not assign the apprentice on an
occupation, which is not related and does not
contribute to his training.
51. Termination of a Contract
1) A contract of apprenticeship shall terminate on the following grounds:(a) at the expiry of the period fixed for the
(b) by giving notice by either of the contracting
(c) when the apprentice terminates the contract
without notice. ‘~’r

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“00P’t-+ 11″1:( If’i I}””P’IrlD’ f”7.1I’LA1lD’
oP””~IC; 1’~ /J:J> I}”+c-a,,+ aoo:”l.1:
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f””’11+oo-a+”tjl.’PA:: 2. The employer may terminate the contract of appren-
ticeship by giving notice referred to under Sub.
Article (1) (b) of this Article, where:(a) he is no longer able to discharge his
obligations on account of change of work or
other causes beyond his control; or
(b) the apprentice violates the disciplinary rules of
the undertaking; or
(c) the apprentice is permanently incapable of
continuing his training or completing his
training within the specified time limit.
3. The apprentice may terminate the contract of appren- ticeship by giving notice of termination referred to
under Sub-Article (1) (b) of this Article, where;
(a) the employer fails to observe his obligations
under the contract or this Proclamation, or
(b) the apprentice has good cause relating to his
health or family or other similar grounds.
4) The apprentice may terminate the contract without
giving notice in accordance with Sub-Article (1) (c)
of this Article where:
(a) he proves, by appropriate medical certificate,
that he cannot discharge his obligations without
seriously endangering his health; or
(b) the employer unilaterally changes the terms of
the contract.
5) The provisions of this Proclamation regarding
severance pay, compensation and reinstatement shall
not be applicable to contracts of apprenticeship.
52. Certificate
The employer shall, upon the termination of the contract
of apprenticeship, give to the apprentice a certificate, which indicates the occupation he has been trained in,
the duration of the training and other similar particulars.
Determination of Wages “‘-,
53. General
1) “Wages” means the regular payment to which the
worker is entitled in return for the performance of the
work that he performs under a contract of em-
2) For the purposes of this Proclamation, the following
payments shall not be considered as wages:
(a) over-time pay;
(b) amount received by way of per-diems, hardship
allowances, transport allowance, transfer ex-
penses, and similar allowance payable to theworker on the occasion of travel or change of
his residence;
(c) bonus;
(d) commission;
(e) other incentives paid for additional work
t) service charge received from customers.
54. Conditions of Payments for Idle Time
1) Unless otherwise provided for in this Proclamation
or the relevant law, wages shall be paid only for work
2) Nowithstanding Sub-Article (1) of this Article, a
worker shall be entitled to his wage if he was ready to
work but, because of interruptions in supply of tools
and row materials or for reasons not attributable to
him was not able to work.

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11~:” nJ.’.OA1’9″::
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ftlll.1~0:” 1.tL “CD-:: CHAPTER TWO
Mode and Execution of Payment’
55. General
Wages shall be paid in cash, provided, however, that where the employer and worker so agree, it may be paid
in kind. Wages paid in kind may not exceed the market
value in the area of the payment in kind and in no case
may exceed 30% of the wages paid in cash.
56. Execution of Payments
1) Unless otherwise agreed, wages shall be paid on
working day and at the place of work.
2) In case where the day of payment mentioned in Sub-
Article (1) of this Article falls on Sunday or a public
holiday, the day of payment shall fall on the
preceeding working day.
57. Payment in Person
Unless otherwise provided by law or collective
agreement, wages shall be paid directly to the worker or ,
to a person delegated by him.
58. Time of Payment
Wages shall be paid at such intervals as are provided for
by law or collective agreement or work rules or contract of employment.
59. Deduction from Wages
1) The employer shall not deduct from, attach or setoff
the wages of the worker except where it is provided’
otherwise by law or collective agreement or workrules or in accordance with a court order or a writtenagreement of the worker.
2) The amount in aggregate that may be deducted at any
one time, from the worker’s wage shall in no case
exceed one-third of his monthly wages.
60. Keeping Record of Payment
1) The employer shall keep a register of payment specifing the gross pay and method of calculation of
the wages, other variable remunerations, the amount and type of deduction, the net pay and other relevant
particulars, unless there is a special arrangement, on
which the signature of the worker is affixed.
2) The employer shall have the obligation to make the
register accessible and to explain the entries there of,
to the worker at his request.
3) The fact that worker has received without protest the
net amount indicated on the register shall not
constitute waiver of his right to any part of his wagesthat was due.
Hours of work, weekly Rest and public Holidays CHAPTER ONE
Hours of work
Normal Hours of Work
61. Maximum Daily or weekly Hours of Work
1) Normal hours of work shall not exceed eight
hours(8) a day or fourty-eight( 48) hours a week.
2) In this proclamation, “Normal hours of work”
means the time during which a worker actually
performs work or avails himself for work in accor-
dance with law, collective agreement or work rules.

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‘}.9″. Federal Negarit Gazeta
-No. 12 26’h February 2004-Page 2470
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flf””C~ I)~”” PI.- 62.
Reduction of Normal Hours ofWork
1) The Minister may, issue directives reducing normal hours of work for economic sectors, industries or
occupations where there are special cunditions of work.
2) Reductions of normal hours of work under this
proclamation shall not entail reduction in the wages
of the worker.
63. Arrangement ofWeekly hours ofwork
Hours of work shall spread equally over the working days of a week, provided, however, where the nature of the
work so requires hours of work in anyone of the working
days may be shortened and the differences be distributed
over the remaining days of the week without extendingthe daily limits of eight hours by more than two hours.
64. A veraging of Normal Hours ofWork
Where the circumstances in which the work has to be caITied on are such that normal hours of work cannot be
distributed evenly over the individual week, normalhours of work may be calculated as an average over a
period longer than one week, provided, however that the
average number of hours over a period shall not exceed
eight hours per day or forty eight hours per week.
65. bxcJusion
Unless otherwise provided in a collective agreement or work rules the pr6visions of this proclamation shall not
apply to commercial travelers or representatives. ”’-”f
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h6″)’ (IQ)fF6. “”};
1) Ilh’}f.’ l}OV7- ntf, t1f., h1A..,t…} nhFIr
h6””- “‘Cj7-tf, t~!,}~,}~ ‘NL1.D’/l, fh1A
.., t”‘)- l}ov”‘- h ‘} f.’ fF6. “”}:: (a) accident, actual or threatened;
(b) force majeure;
(c) urgent work to be done. ”
2) Subject to the provision of Article 68(c), a worker
who,by virtue of the provisions of this Chapter,
works on a weekly rest day, shall be entitled to aweekly rest period; provided, however, that he shall
be compensated in the form of money if his contract
,. of employment is terminated before he is granted the
compensatory rest period.
72. Application
1) The provisions of this chapter shall not apply to commercial travellers or representatives.
2) The Minist~r may issue directives determining the
special application of the provisions of this Chapter
to workers who are directly engaged in the carriage
of passengers and goods.
CHAPTER THREEPublic Holidays
73. General
Public holidays observed under the relevant law shall be
paid public holidays
74. Non-Reduction of Wages for Public Holidays
1) A worker who is paid on a monthly basis shall incure no reduction, in,his wages on account of having notworked on public holiday.
2) The payment of wages’on a public holiday to a
worker other than the payment mentioned under
sub-article (1) of this Article shall be determined by
his contract of employment or collective agreement.
75. PaYf!1ent fOf wQrk on I!ublic Holidays
1) A worker shall be paid his hourly wages multiplied
by two for each hour of work on a public holiday.
2) Where a public holiday coincides with another
publi~ holiday or falls on a rest daydesignated by
this ‘proclamlltion or any other special law, the .
! .
workers shall be entitled to only one payment for
working on such a day. “”-“f
Annual Leave
76. General
~) An agreement by a worker to waive in any manner his right to annualleave shall be null and viod.
2) Unless otherwise provided in this Proclamation, it is
prohibited to pay wages in lieu of the annualleave.
77. Amount of Animal Leave
I) A worker pursuant to this Article shall be entitled to
uninterrupted annual leave with pay which shall in
no case be less than:
a) fourteen (14) working days for the first one year
of service;
b) fou~een, q4)working daysplus one working
day for every additional year of service.

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h;rm.,. f,fin~e; Y:c~:” -t1n. flf~ f,fin~e;
f~latlc CDt.Tft.fc-n ~CD-:: CHAPTER TWO
Special Leave
81. Leave for Family Events
1) A worker shall be entitled to leave with pay for three
working days when;a) he concludes marriage; or
b) his spouse or descendants or ascendants or
another relative, whether by affinity or consan-
guinity upto the second degree dies.
2) A worker shall be entitled to leave without pay for
upto 5 consecutive days in the case of exceptional
and serious events.
82. Union Leave Leaders of trade unions shall be entitled to leave with pay
for the purpose of presenting cases in labour disputes,
negotiating collective agreements, attending union
meetings, seminars or training courses. The manner of
granting such leave may be determined in a collective
83. Leave for Special Purposes
1) A workers who appears at hearings before bodies
competent to hear labour disputes or to enforce
labour laws shall be granted leave with pay only for
the time utilized for the said purpose.
2) A worker who exercises his civil rights or duties”-,
shall be granted leave with pay, only for the time
utilized for the said purpose.
3) The manner in which educational or training leave is
to be granted and the form and extent of the financialassistance to be given may be determined in a
collective agreement or work rules.
84. Notification
A worker wishing to take leave in accordance with the
provisions of this Chapter shall notify the employer in
advance and present the necessary supporting evidence
when the employer requests him.
85. Duration of Leave 1) Where a worker, after having completed his probation, is rendered incapable of work owing tosickness other than resulting from employment
injury, he shall be entitled to a sick leave.
2) The leave referred to in sub-article (1) of this Article
shall, in no case, be more than six months counted
consecutively or separately in the course of any
twelve moths period starting from the first day of his
3) Where a worker absents himself from work on
grounds of sickness, he shall, except where the
employer is in a position to be aware of the sickness
or it is impractical, notify the employer the day
following his absence.
4) Unless the collective agreement provide otherwise. a
worker shall be entitled to a sick leave upon
presenting a valid medical certificate given by a
medical organization recognized by the Govern-

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4!’I’CI~ftt1:.”‘J’ It +1 H~f.j:;;’i.9″.Federal Negarit G~eta –
No. 12 26w February 2004-Page 2475
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1IC1I-r9″ n1’tf.9″ hn.tJ n;t-“f f1’oothi::”‘} ,l’.Q;1.9″ &-A:: 86. Payment
The period of sick leave provided for in Article 85 shall
be granted in the following manner:
1) the first one month with 100% of his wages;
2) the next two months with 50% of his wage;
3) the next three months without pay.
Working Condition of Women and
Young Workers
Working Conditions of Women
87. General
i ) Women shall not be discriminated against as regards employment and payment, on the basis of their sex.
2) It is prohibited to employ women on type of work
that may be listed by the Minister to be particularlyardous or harmful to their health.
3) No pregnant woman shall be assigned to night work
between 10 p.m. and 6 a.m. or be employed onovertime work.
4) No pregnant woman shall be given an asignment
outside her permanent place of work, provided,
however, she shall be transferred to another place ofwork if her job is dangerous to her health or
pregnancy as ascertained by a medical doctor.
5) An employer shall not terminate the contract of
employment of a women during her pregnancy anduntil four months of her confinement.
6) Notwith standing the provisions of sub-article (5) of ‘”
this Article, the contract of employment may be
terminated for reasons specified under Articles 25,
27 and 29 (3) if it is not related to giving of birth and
88. Maternity Leave
1) An employer shall grant leave to a pregnant woman worker without deducting her wages, for medical
examination connected with her pregnancy,
provided, however, that she is obliged to present amedical certificate of her examination.
2) A pregnant woman worker shall, upon the recom-
mendation of a medical doctor, be entitled to a leavewith pay.
3) A woman worker shall be granted a period of 30
consecutive days of leave with pay preceding the
presumed date of her confinement and a period of 60
consecutive days of leave after her confinement.
4) Where a pregnant woman worker does not deliver
within the 30 days of her prenatal leave she is entitled
to an additional leave until her confinement in accordance with sub-article 2 of this Article. If
delivery takes place before the 30 days period haselapsed, the post-natal leave under sub-article 3 of
this Article shall commence.
Working Conditions of Young Workers
89. General
1) For the purpose of this Prpclamation, “Young worker” means a person who has attained the age of14 but is not over the age of 18 years.
2) It is prohibited to employ persons under 14 years of
3) It is prohibited to employ young workers which on
account of its nature or due to the condition in which
it is carried out, endangers the life or health of the
young workers performing it.
4) The Minister may prescribe the list of activities
prohibited to young worker which shall include inparticular:

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-No. 12 26th February 2004-Page 2476
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fOOZ,ltmlD-1-r/)”1′ ~&.?DlfA:: (a) work in the transport of passengers and goods
by road, railway, air and internal waterway,
docksides and warehouses involving heavyweight liftings, pulling or pushing or any other
related type of labour;
(b) work conncected with electric power
generation plants transformers or transmission,
(c) underground work, such as mines, quarries and
similar works;
(d) work in sewers and digging tunnels.
5) The provision~f sub-article (4) of this Article shall
not apply to work performed by young workers
following courses in vocational schools that areapproved and inspected by the competent authority.
90. Limits of Hours of Work Normal hours of work for young workers shall notexceed seven hours a day.
91. Night and Overtime Work
It is prohibited to employ young workers on:
1) night work between 10 p.m. and 6 a.m.;
2) overtime work; 3) weekly rest days; or
4) public holidays.
Occupational Safety, Health and Working Environment CHAPTER ONE
Preventive Measures
92. Obligations of an Employer
An employer shall take the necessary measure to safeguard adequately the health and safety of the
workers; he shall in particular:
1) comply with the occupational health and safety
requirements provided for in this Proclamation;
2) take appropriate steps to ensure that workers are
properly instructed and notified concerning the
hazards of their respective occupations and the
precautions necessary to aviod accident and injury to health; ensure that directives are given and also
assign safety officer; establish an occupational,safety and health committee of which the commit-
tee’s establishment, shall be determined by a direc-
.tive issued by the Minister;
3) provide workers with protective equipment, clothing
and other materials and instruct them of its use;
4) register employment accident and occupational
diseases and notify the labour inspection of same;
5) arrange, according to the nature of the work, at his
own expenses for the medical examination of newlyemployed workers and for those workers engaged in
hazardous work, as may be necessary.
6) ensure that the work place and pernrises do not cause
danger to the health and safety of the workers;
7) take appropriate pre-executions to insure that all the
processes of work shall not be a source or cause of
physical, chemical, biological, ergonomical andpsychological hazards to the health and safety of the
8) implement the directives issued by the appropriate
authority in accordance with this Proclamation.

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~,}f.(f” ~,.y.m6-A:: 97.
Occupational Accident
For the purpose of this Proclamation “Occupational
accident” means any organic injury or functional disor-
der sustained by a worker as a result of any cause
extraneous to the injured worker or any effort he makes
during or in connection with the performance of his work
and includes;
(a) any injury sustained by a worker while carrying out
the employer’s order, even away from the work
place or outside his normal hours of work;
(b) any injury sustaiyed by a worker before or after his
work or duing any interuption of work if he is
present in the work place or the premises of the
undertaking by reason of his duties in connection
with his work;
(c) any injury sustained by a worker while he is
precceding to or from place of work in a transport
service vehicle provided by the undertaking which
is avilable for the common use of its workers or in a
vehicle hired and expressly destined by the under-
taking for the same purpose;
(d) any injury sustained by a worker as a result of an
action of the employer or a third party during the
performance of his work.
98. Occupational Disease
1) For the purpose of this Proclama~ion an “oc-
cupational disease” means any pathological con-
dition whether caused by physical, chemical or
biological agents which arises as consequence of:
(a) the type of work performed by the worker; or
(b) the surroundings in which the worker is obliged
to work duirng a certain period prior to the date
in which the disease become evident.
2) Occupational disease shall not include endemic or
epidemic disease which are prevalent contracted in
the area where the work is done, except in the case of
workers exclusively engaged in combating such
diseases by reason of their occupation.
3) The minister shall in consultation with the concerned
authority issue, directives which contain scheduleslisting diseases to be of occupational origin. The said
schedule shall be revised at least every five years.
4) The occurrence of any of the deases listed in the
relevant schedule on any worker having been en-gaged in anyone of the corresponding types of work
specified therein, shall by itself, constitute sufficient
proof of the occupational origin of the disease.
5) Notwithstanding sub-article (4) ofthis Article, proof
shall be premitted to establish the occupational
origin of a disease not listed in the relevant schedule
and of diseases listed when they manifest themselves
under conditions different from those establishing a
presumption of their occupational origin.
6) In the absence of proof to the contrary, any disease
which occurs frequently only to persons employed in
certain occupations shall be presumed to be of an
occupational origin where the worker suffering from
such a disease was engaged insuch 3n occupation
and the existence of the disease is ascertained by a
medica] doctor.
7) The date on which an occupation] disease became
evident, i.e. the first date on which the worker
became incapacitated or the date of the first medical
diagnosis of the disease or the date of the injured
worker’s death, shall be considered as the date onwhich an employment injury occurred.

‘IX’ ~ir.!i~{~!i

‘1~’1’C:r:~ ,11’1;’)’
L’; ,”‘} nn:t4 ‘Ho.
~I.: ‘ Federal Negarit Gazeta
-No, 12 26th February 2004-Page 2479
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j’.’i<:.:}'A:: u) 1.lLf'P. fh'1A1.P'.1-; t) tllt.~ ht.A fh'1A 1'P'.'}':: ,.h) tllt.~ (iD't-fh'1A .,.p'.). hfi ou) qu.} 1.ll.f'P. fh'1A1'P'.'}' 'l.II.J''P. f hilA 1'P,'} LP/.,"'~:en- I'"/..en-'} t,,'enM 1.l1. nI1D-t'en~9u f1ht.A tO?hfim'} h,}P,f'1'AfO?.ff.C1en' t'h'1A 1'P'.'}' ~en- :: /i~' 8) Where a worker after being cured from an occupational disease listed in the relevant schedule, contracts the disease again as a result of his being engaged in anyone of the corresponding work specified in the said list, itshall be presumed that he has contracted a fresh occupational disease. SECTION TWO Degree of Disablement 99. General I 1) "disablement" Jmeans any employment injury as aconsequence of which there is a decrease or loss of capacity to work. 2) Disablement shall have the followiwng effects: (a) temporary disablement (b) permanent partial disablement (c) permanent total disablement and (d) death. 100. Temporary Disablement Temporary disablement results from the reducation for a limited period of time of the worker's capacity for work partially or totally. 101. Permanent Partial or Total Disablement 1) "Permanent partial disablement" means incurable empoyment injury decreasing the injured worker's capacity. 2) "Permanent total disablement" means incurable employment injury, which prevents the injuredworker from engagding in any kind of remunerated work. 3) Injuries which, although not resulting in incapacity for work, cause serious mutilation or disfigurementof the inujured person shall be considered per- manent partial disablement, for the purpose of compensation and other benefits. tllt.~ ht.A enf..9u(/D't- fh'1A 1-p,,), /i' ""It.~ ht.A fh'1A 1'P'.'}'" a"/t')' 1'P'.'}' ff./'() fH''} LP/.."'~:'} f'Oor/...)' 1.t:}.fO?..,''}{} fa"/f..~.:'} f1r/.. It~ fO?f.e{} 1'P'.'}' ~en- :: ~. "tllt.~ {/D't- fh'1A 1'P,'}" 0"/t.'}'1'P'.'}-ff.l()fl""'} LP/.."'~: u"/fi:,:en-'}SJO f.UVenll fO"/.f{}1~ I'"/.. 0 tuv I'"/.-.). fD7.hthten- fa"/ ~y.:",f1r /.. Itf. fD7.f.C{} 1'P'.'}' 'len- :: I:' hl)y" fh'1A enf..9ufUVAh uvfllti'i.}'} f{}h.t-t ,.p'.} fuvr/.-.'}' 1.t°;1' o"/fl).'}' I)f{}h'}A9U t1'P'.'}' '1..., hh4.t.Afi t,t°1'",:"lJU1' h()fl)", ().'IA h,}f."It~ h&.A fh'1A 1-P'.'}' f..<¥>m/.-A ::
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If’i ().1~ LP/..-f.,<;:en. h,}f.~1-:"r~;" h~f t'O"/"r'i.'}'lflJon-t: t.l;J1'1't.'}. mf.9u t.hthA het:f .t'OIJ'} t.bLl.uvct.'}. enf.9u t.."Hlfl'} ~1.ItA:: {;. flrlr Itf.. fCI'J.f.ei11'P'.'}'ff.t.()fl.'}' LP/...t.~: h,}f.1fi flrlrItfJ fO"/.f.C{} 1'P'.'}'ff.l()fl.} h,}f.If~ fh'1A 'J.p'.'}' uvm~ f.l~' hLPlr"'~en' h~_{} U-).;1'$P1' h'}'C h'}f.1fi ~m()fiA :: /if-/i' /i~~' Assessment of Disablement ; The degree of permanent total or partial disablement shall he fixed in accordance with the assessment table of disablement prescribed by directives issued by the Minister. 2) The degree of disablement shall be assessed inaccor- dance with the assessment table provided for in sub-article (1) of this Article, by a competent medical board. The board shall determine the extent of the degree of disablement as far as possible within twelve months form the date of injury, 3) Disablement which has been assessed may be reviewed in accordance with sub-articles (1) and (2) of this Article where the worker's condition de-teriorates or improves or is wrongly diagonised: (a) on the initation of the appropriate authority, or (b) at the request of the worker or employer concerned. 4) Where the result of the review warrants it, the rights of the worker to a disablement benefit shall be recognized or withdrawn or that the rate payableincrease or reduced, as the case may be. 5) Where a worker who suffered an imployment injury sustains a further employment injury, his disablement shall be reassessed in light of his new circumstances. 005A005A005A001100440045005C00560056004C0051004C0044004F0044005A0011004600520050 'lK' !lif.!it'u' ~1v&.A ~;J~'}' ;JILIlJ 11
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(b) children of the deceased worker who are under
eighteen years of age;
(c) any parent who was being supported by the
deceased worker.
3) The amount of the dependants compensation for
workers not covered by the Public servants pension
law, shall be a Sum equal to five times the annual
salary of the deceased and for those stipulated
under Sub-Art 2 of this Article by the employer at
(a) 50% (fifty percent) for the deceased worker’s
lawful husband or wife;
(b) 10% (ten percent) each for the deceased
worker’s children who are below the age of
fifteen years old;
(c) 10% (ten percent) each for the deceased
worker’s parents who were being suported by
4) If the total of dependents’ compensation calculated
in accordance with Sub-Article 3 ofthis Article is in
excess of one hundred percent (100%) of the total amount to be divided, the amount of compensation
of each dependent shall be proportionately reduced
by the amount required to reduce the total amount
payable to one hundred percent (100%) of the said total amount. If the total of dependents compen-sation is less than one hundred percent (100%) of
the total amounts to be divided, the amounts of
compensation of each dependent shall be propor-
tionately increase by the amount payable to one
hundred percent (100%).
111. Burden of Proof
The benefits referred to in Article 110 shall not be
payable where the worker dies after twel ve months from
the date of the injury, unless it is proved that the injurywas the principlal contributory cause of his death.
112. Benefits not Taxable
1) The benefits paid in accordance with the provisions
of this Section shall be free from any kind of tax.
2) The benefits payable under the provisions of this
Section shall not be assigned, attacched or deducted
by way of setoff.
Collective Relations CHAPTER ONE
Trade Unions and EmplQyers Associations
113. The Right to Form Organizations
1) workers and employers shall have the right to
establish and form trade unions or employers
associations, respectively and actively participate
2) In this Proclamation:
(a) “trade Union” means an organization formed
by workers;
(b) “employers association” means an or-
ganization established by employers;
(c) “federation” means an organization es-
tablished by more than one trade unions or
employers associations.
(d) “confederation” means an organization es-
tablished by more than one trade unions
federations or employers federations.
114. Formation of Organizations
1) A trade union may be established in an undertaking
where the number of workers is ten or more;
provided however that the number of members of
the union shall not be less than ten.

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1) fouh(}{)c,’ fuph{}{): 116.
Functions of Federations and Confederations
In addition to those matters mentioned under Article
115 federations and confederations shall have the
following functions; 1) to strengthen the unity and sprit of co-operation of
their members; participate in the determination or
improvement of the conditions of work at the trade
or industry level as well as to encourage members
to strengthen their participation in the construction
of the national ec<,nomy; 2) to represent their organizations in any conferences; 3) to discharge other functions in accordance with theu- constitutions. 117. Constitution of Organizations Trade unions and employers associations shall issue their own constitutions. The constitutions may include inter alia the following; 1) name of the organization; 2) address of the head office of the organization; 3) purpose of the organization; 4) date of formation of the organization; 5) emblem of the organization; 6) qualifications for leadership; 7) contribution of its members; 8) financial and property administration of the or- ganization; 9) meeting and election procedures; , 10) disciplinary measures; and 11) the conditions for dissolving the organization. 12) Status of the property in case of the dissolution of the organization 118. Registration of Organizations 1) Every organization shall be registered by the Ministry in Accordance with this Proclamation; 2) Every organization shall, upon its establishment, submit to the Ministry for registration the following documents: (a) constitution of the organization; (b) a document containing the names; address and signatures of its leader; (c) in the case of a general union, the names of undertakings where members are working; (d) where the organization is a federation or a confederation, the names, address and sig- natures of their leaders and the member trade unions or employers associations; (e) name and emblem of the organization; 3) The Ministry shall, after examining the documents and ascertaining that they are duly completed, issue a certificate of registration within fifteen days of receiving the application. Where the Ministry does not notify its decision within this period, the organization shall be deemed registered; 4) An organization which is not registered in accor- dance with the provisions of this Proclamation maynot perform activities set forth in this Proclamation; 5) A trade union or employers association registered by the Ministry in accordance with this Proclamationshall have legal persJnality and in particular, have the capacity to undertake the following activities; (a) to enter into contract; (b) to sue and be sued; 005A005A005A001100440045005C00560056004C0051004C0044004F0044005A0011004600520050 .,~ ~i'I:!ix.ii'?; ~oS!oM ~;Jt:";JILIIJ 9UFtJC
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. (c) to own, use and tranfer property;
(d) to represent members at anylevel, and
(e) to perform any legal act necessary for the
attainment of its purposes.
119. Refusal to Register
The Ministry may refuse to register an organization for
anyone of the following reasons.1) Where the organization does not fulfil the
requirements laid down in this Proclamation,
regulations and directives issued in accordancewith this Proclamation;
2) where the objectives and the constitution of the
organization are illegal;
3) where the name of the organization is similar to
another organization established prior to it or so
closely similar as to confus~ its members and the
general public in any manner; or
4) where one or more than one of those elected as
leaders of the organization have been convicted and
punished, within the late ten years, of serious,
nonpolitical offences and the organization is not
willing to substitute .them by others.
120. Cancellation ofRegistration
1) The Ministry may apply to the competent court to
cancel the certificate of registration of an or-ganization, on anyone of the following grounds:
(a) where the certificate of registration is obtained
by fraud or mistake or deceit;
(b) where anyone of the objectives or constitution
9f the organization is found to be illegal under
this Proclamation and the organization is not
willing to remedy or correct the illegal
provisions or conditions, or
(c) where the organization is found to have
engaged in activities which are prohibited
under this Proclamation or performed acts
which are contrary to its purposes and cons-
titution and it is not willing to cease or remedy
or eleiminate them.
2) The Ministry may upon request by an organization
ensure that the organization is dissolved in suchmanner as it thinks appropriate.
121. Notice to Cancel Registration organization
“1) The Ministry shall before applying for the can-
cellation of theregistration of an organization in
accordance with sub-article 1 of Article 120, give to
the concerned organization <:memonth prior notice specifying the reasons for the cancellation and the opportunity to oppose it. The Ministry may not specify any reason other than those enumerated in sub-article 1 of Article 120. 2) Where the one month period of notice provided for in sub-article (1) of this Article has expired and the organization dose not oppose the notice or the opposition is considered groundless by the minis- try, the Ministry may apply to the competent court for th~ cancellation of registration. 005A005A005A001100440045005C00560056004C0051004C0044004F0044005A0011004600520050 'IX' !{iQix'ii?; 4..$!..M '1:Jt.l' :JILfIJ'1:'1'(;X!{ fI1'l;'} X;~ '''')!:iix:iJ; ~'9'" Federal Negarit Gazeta -No. 12 26'" February 2004-Page 2486 (if~'~' (if?}';:' lif~'!i' (i. (if.~;?;' li' (if.~'~' (i. iif.?}'%' e. ntlU h'}.,.? '}lJ-ll h'}? (~) f-‘-m”‘(aco- ‘h’}1..,-
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~. 3) without prejudice to sub-article 2 of this Article the
Ministry may suspend the organization to refrainfrom the act which is prohibited by the
proclamation or contrary to its objectives and the
constitution which may give rise to cancellation ofthe certificate as provided for under sub-article l(c)
of Article 120 of this Proclamation.
122. Appeal
Where the Ministry refuses registration of the or- ganization, the’ organization may appeal to the com-
petent court within fifteen days (15) from the date ofthe receipt of the decision in writing. During the hearing,
the Ministry shall be given the opportunity to appear
before the court and forward its opinion.
123. Consequence of Cancellation of Registration or upon
request by the Organization
An organization shall be deemed dissolved where the
registered organization is dissolved by a decision of a
court or upon request by the organization to the Ministry
and is dissolved from the day a decision is made.
Collective agreement
124. Definition
1) “Collective agreement” means an agreement con-
cluded in writing between one or more represen-
tative of trade uinions and one or more employers
or agents or representatives of employers or-ganizations. .
2) “Collective Bargaining” means a negotiation made. hetween. employers and workers or-
ganizations or their representatives concerning
conditions of work or collective agreement or the
renewal and modifications of the collective agreement.
125. Collective bargaining
1) Trade union shall have the right to bargain a
collective agreement with one or more employers
or their organization in matters provided for inArticle 128.
2) Employer or employer’s associations shall have the
right to bargain a collective agreement with theirworkers organized in a trade union.
126. Representation
1) The following shall have the right to represent
workers during collective bargaining.
(a) Where there is a trade union, the leaders of the
union who are empowered to represent theworkers during collective bargaining.
(b) where there is ageneral trade union, the leaders
of the union, who are authorized in accordancewith the constitution of the union.
2) The person who represent the employer shall be the
concerned employer or employers or those who aredeligated by more than one employers associations.
127. Advisors
Any bargaining party toa collective agreement may be
assisted by advisors who render expert advice during
the negotiation.

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Conditions of Validity of Collective Agreement
133. Duration of Validity of Collective Agreement
1) Any provision of a collective agreement which
provides for conditions of work and benefits whichare less favourable than those provided for under
this Proclamation or other laws shall be null and void:
2) Unless otherwise decided therein, a collective
ageement shall have a legal effect as from the date
of signature.
3) unless expressly stipulated otherwise in a collective
ageements, no party may challenge the collective
agreement before 3 year from the date of its
validity, provided, however, that;
(a) Upon the occurrence of a major economic
change, a challenge to the collectiveagreement may be submitted to the Minister
by either party before the expiry of the fixed
(b) The Minister shall, upon receipt of a challenge
to a collective agreement in accordance with
this sub-article 3 (a), assign advisor with aview to enabling the two parties settle the
matter by agreement. If the two parties fail to
settle the matter by agreement, Article 142 of
this ProClamation shall apply.
(c) the parties may at any time change or modify
thier collective agreement, provided,however, that without prejudice to the special
conditions set forth in sub-article 3 (a) and (b)
of this Article, a party may not be obliged without his consent to bargain a collective
agreement to change or modify it before the
said time limit expires.
Scope of Application of
a Collective Agreement
134. Scope of Application
1) The provision of a collective agreement shall be applicable to all parties covered by it.
2) Where the collective agreement is more favorable
to the workers in similar matters than those
provided for by law, the collective agreement shall
prevail. However, where the law is more
favourable to the workers than the collective
agreement the law shall be applicable.
135. Exception
1) Where a trade union which is a party to a collective agreement is dissolved, the collective agreementshall continue to be valid between the employer and
the workers.
2) In the case of amalgamation of two or more
undertakings, unless decided otherwise by the
concerned parties:

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‘H'” Federal Negarit Gazeta
– No. 12 261hFebruary 2004-Page 2489
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OJ’Uf); (loP:J>OJ9° ftPJ..,.C’O .f.”l11~; 5) “Strike” means the slow-down of work by any
number of workers in reducing their normal out-put
on their normal rate of work or the temporary
cessation of work by any number of workers actingin concert in order to persuade their employer to
accept certain labour conditions in connection with
a labour dispute or to influence the outcome of the
CHAPTER TWOLabours Courts
137. Establishment ofLabour Divisions
1) There shall be set up labour divisions, as may be necessary, at each regional first instance court, each
regional court which hears appeals from regional
first instance courts and at the Central High Court.
2) The Minister shall submit the number of labour
divisions to be established in accordance with Sub-
Article (1) of this Article to be determined by the
appropriate authority.
138. Labour Division ofthe Regional First Instance Court
1) The labour division of the regional first instance court shall have jurisdiction to settle and determinethe following and other similar individual labour
(a) disciplinary measures including dismissal;
(b) claims related to the termination or con-
cellation of employment contracts;
(c) questions related to hours of work,
remuneration, leave and rest day;
(d) questions related to the issuance of certificate
of employment and release;
(e) claims related to employment injury;
(t) unless otherwise provided for in this
Proclamation, any criminal and petty offencesunder this Proclamation.
2) The labour division of the regional first instance
court shall give decisions within 60 days from the
date on which the claim is lodged.
3) The party who is not satisfied with the decision of
the regional first instance court may, within 30 days
from the date on which the decision was delivered, appeal to the labour division of the. regional court
which hears appeals from the regional first instance
139. The Labour Division ofthe Regional Appellate Court
1) The labour division of the regional court which hears appeals from the regional first instance courtshall have jurisdiction to hear and decide on the
following matters:
(a) appeals submitted from the labour division of
the regional first instance courts in accordancewith Article 138 of this Proclamation;
(b) objections on question of jurisdiction;
(c) appeals submitted against the refusal of the
registration of an organization by the Ministryin accordance with Article 122 of this

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Federal Negarit Gazeta
-No. 12 261hFebruary 2004-Page 2491
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(lC~ t.!~c-n f,:Y’IA II (d) appeals submitted by an employer who is
affected by the order of labour inspector in
accordance with Article 180 (1) of this
(e) appeals submitted against the decision of the
Ministry in accordance with Sub-Article (3)
of Article 20.
(f) request submitted for the cancellation of the
registration of an organization in accordancewith Sub-Article 2 of Article 121.
2. The decision of the court on appeal submitted under Sub-Article (1) of this Article shall be final.
3. The Regional appelate labour division court shall make decision within 60 days from the date of theappeal lodged in accordance to sub-Article 1 of
this Article.
140. The Labour Division of the Federal High court
1) The labour division of the Federal High Court shall have jurisdiction to hear and decide on appealsagainst the decision of the Board on question of law
in accordance with Article 154 of this
2) The decision of the court under Sub-Article (1) of
this Article shall be final.
141. Assignment of Conciliator 1) When a dispute in respect of matters specifiedunder Article 142 is reported to the Ministry by
either of the disputing parties, it shall assign a
conciliator to bring about a settlement of the case.
2) The Ministry may assign conciliators at the
National and when necessary at the Wereda level.
142. Duties and Responsibilities of the Conciliator
1) The conciliator appointed by the Ministry shall endeavour to bring about a settlement on th'”
following, and other similar matters of collective
labour disputes:
(a) wages and other benefits;
(b) establishment of new conditions of work:
(c) the conclusion, amendment, duration and
invalidation of collective agreements:
(d) the interpretation of any provisions of this
Proclamation, collective agreements or workrules;
(e) procedure of employment and promotion of
(f) matters affecting the workers in general and
the existence of the undertaking;
(g) claims related to measures taken by the
employer regarding promotion, transfer and
(h) claims relating to the reduction of workers.
2. The conciliator shall endeavour to brring about a settlement by all reasonable means as may seem
appropriate to that end.
3. whenever the concilator fails to settle a labour dispute within 30 days, he shall report’with detailed
reason thereof to the ministry and shall serve the copy to the parties involved. Any party involved
other than those indicated under Sub-Article (1) (a)
of this Article may submit the matter to Labour
Relation Board. If the dispute as per subArticle 1 (a)
of this Article concernes those undertaking des-
cribed under Article 136(2) of this proclamationone of the disputing party may submit the case to
adhoc Board,

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lif?i~’ 143.
Conciliation and Arbitration
1) Notwithstanding the provisions of Article 141 of
this Proclamation parties to a dispute may agree ~osubmit their case to arbitrators or conciliators, other
than the Minister for settlement in accordance with
the appropriate law.
2) If the disputing parties fail to reach an agreement on
the case submitted to arbitration or concilation
under Sub-Article (1) of this Article the party
aggrieved may take the case to the Board or to the
appropriate court.
The Labour Relations Board
144. Establishment of the Board
1) One or more permanent Labour Relations Boards (here in after referred as permanent Board) may be
established in Regional Government.
2) The adhoc labour Relation Board (here in after
referred as adhoc Board) may be established to hear
. and decide disputes that may arise on matters
specified in sub-article l(a) of Article 142 at
undertakings referred to Article 136(2) of this
3) Each permanent or adhoc Board shall be under the
local authority responsible for the implementation
of labour laws.
145. Composition of the Permanent or adhoc Board
1) The Board shall consist of a chairman, two qualified members who have the knowledge andskill on labour relation, appointed by the Minister,
four members of whom two represent the trade unions and two represent employer’s associations,
and two alternate members one from the workers
side and one from the employers side.
2) Employers representatives shall be appointed from
the most representative of employers associations
and workers representatives shall be appointed
from the most representative of trade unions.
3) The Minister shall assign a secretary and such other
necessary staff to the Board. .
4) Members and alternate members ‘of the Board shall
serve on part time basis without remuneration,
provided, however, that the Minister may fix
standard fees for attendances at meetings of the
5) Members and altenate members of the Board shall
be appointed for a term of three (3) years; provided,
however, that in making the initial appointments,
the terms of one, two and three years, respectively,shall be speicified so that in each subsequent year
the terms of not more than one-third (1/3) of the
members and altenate members then serving shall
expire in anyone calendar year.
6) The Minister shall dismiss a member in case of
negligence of duty or meifeasance in office andshall arrange for the appointment of a substitute for
the remaining, unexpired term.

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Q’ 146.
Meeting procedure ofthe permanent and the adhoc
1) In the absence of the Chairman another member of the Board designated by him as Acting Chairman,shall preside over the meetings of the Board. Where
no such member is designated, the member of the
Board with the greatest seniority shall serve as
Acting Chairman.
2) In the absence Qf a member at any meeting of the
board, the Chairman may designate an alternatemember to replace the absent member at such
meetings. An alternate members so designated
shall be deemed a member for the meeting for
which he is designated.
3) Four members of tl)e Board shall constitute a
quorum at any meet(ngs provided, however, that a
minimum of one member representing workers andone member representing employers shall be
4) Decision of the Board shall be taken by a majority
vote of the members present. In case of a tie, the
Chaiman shall have a casting vote.
5) Each decision of the Board shall be signed by all
members present.
6) Minutes of meetings after approval by the Board,
shall be certified by the secretary and shall thereaf-
ter constitute the official record of the said meetings.
147. Powerofthe permanent and the adhoc Board
1) The permanent Board shall have the following power:
(a) to hear labour disputes on matters specified in
sub-article (1) of Article 142, except for (a), to
conciliate the parties and to give orders and
(b) except for sub-article l(a) of Article 142 to
hear cases submitted to it by one of the
disputing parties after the parties fail to reachan agreement in accordance with sub-article(3) of article 142:
(c) to hear cases on prohibited actions referred to
in Article 160;
(d) to require any person or organization to
submit information and documents required
by the Board for the carrying out of its duties;
(e) to require parties and witness to appear and
testify at hearings;
(t) to administer oaths or take affirmations of
persons appearing before the Board and ex-amine any such persons upon such oath or
(g) to enter the premises of any working place or
undertaking during working hours in order to
obtain relevant information, hear witnesses or
to require the submission of documents or
other articles for inspection from any person inthe premises;
2) The adhoc Board shall have the power to hear labour
disputes on matters specified in sub-article l(a) ofArticle 142, to conciliate the parties and to give any
orders and decisions,
3) Except in cases of emergency the person in charge of
the premises or the undertaking shall be given
reasonable advance notice before any entry inaccordance with sub-article 1 (g) of this Article.
4) Orders and decisions of the Board shall be con-
sidered as those decided by civil courts of law.

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tJC>1′ :J>A C;:&.’11CLJ fi-11nT’} 9°’}f”>lb: 148.
Rules ofProcedure
The pennanent or the adhoc Board shall issue its own
rules of evidence and procedure.
149. Hearings ofcases
1) Before giving decisions, the permanent or the adhoc Board shaH notify the parties involved and
afford them an opportunity to be heard. At least
three (3) days advance notice of hearing shall begiven to the parties and the notice shall contain in
the date, hour and place of hearing.
2) If any of the parties or any other person properly
summoned to appear at a hearing fails to appear at
the fixed time and place, the Board may proceed
with the hearing. If failure to appear was not the
fault of the person involved the Board shall grant
that person a second opportunity to appear beforeit.
3) No apeal may be taken on the Borad’s decision
given in accordance with Suh..Article (2) of thisArticle.
4) All hearings of the Board sh<1lJhe puhllC unless the Chairman for good cause decides otherwise. 5) The permanent or the adhoc Board shall not be bound by the rules of evidence and procedureapplicable to courts of law, but may infonn itself in such manner at it thinks fit. 6) Trade unions, employers associations and other parties notified to appear at the hearing may be represented by their duly authorized represen-tatives or appointed legal council. The Board maylimit the number of such representatives who mayactively participate in a hearing on behalf of any single party. 150. Consideration ofMatters 1) The pennanent or the adhoc Board shall endeavour to settle by agreement Labour disputes submitted toit, and to this end it shall employ and make use of all such means of conciliation, as it deems appropriate. 2) The Board may inappropriate circumstances con- sider not only the interest of the parties immediately concerned but also the interest of the community of which they are apart and may in such circumstances gr-ant a motion to intervene by the government as . . amICUScunae. 3) In reaching any decision, the Board shall take into account the substantial merits of the case, and need not follow strictly the principles of subtantive law followed by civil courts. 151. Decisions 1) The pelmanent or the adhoc Board shall give decision within 30 days from the date on which theclaim is loged. 2) Decisions of the pennanent or adoc Board shall be made in writing and signed by the Board memberswho concur therein. Dissenting opionions shall also be made in writing and signed by the mebers in dissent. 3) In every decision of the Board the judgement shall contain the following: (a) the issue or controversy submitted for decsion; (b) the substance and source of relevant testimony and evidence received in the course of the proceedings; 005A005A005A001100440045005C00560056004C0051004C0044004F0044005A0011004600520050 1W fin: ~fj~ 1..1.601/ ~,;Jt"', ,;Jtf.tlJ +'1'CIII fl"J-t.).I=5n Iitfjf, 'H". Federal Negarit Gazeta - No. 12 26thFebruary 2004-Page 2495 ch) (1C~ 11f: Y...,llIy.h1.1l~Cit fnok-r1 tt:&. "'l~".f1'i fooIlUCi:flD-1 ""~f"".f ! 00) lhf1~1~ 6f.b1l'l'CDY.9"tlctlc fl1mlD-1 lD-""~ ! IP) n l1mlD-9" lD-""~ 00 IPt.-r t. CD11~ fD? 'lII :fCD-1 hC9"jf9'".f :: !!. f(1C~ lD-""~'?AIl6f.b lD-UJ~lD- n.,.l1m n~ 4>‘i-r
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~mit1 Y.”.flA :: (c) the findings of the fact made and the
evaluation of the evidence which leads the
Board to make such findings;
(d) the decision of each issue or controversy;
(e) the action to be taken on the basis of such
4) A copy of the decision of the Board shall be served
upon the parties involved within 5 days from the
date of decision.
152. Effect ofDecisions
1) Subject to article 154 of this Proclamation, each decision of the permanent or the adhoc Board shall
have immediate effect.
2) Where a decision of the permenent or adhoc Board
relates to working conditions, it shall be a term of
the contract of employment between the employer
and the worker to whom it applies, and the termsand conditions of employment to be observed and
the contract shall be adjusted in accordance with its
153. Finality ofthe Board’s Findings ofFact
All findings of facts made by the Board shall be final and conclusive.
154. Appeal
1) In any Labour dispute case an appeal may be taken
to the Federal High Court by an aggrieved party on
questions of law, within thirty (30) days after the
decision has been read to, or served upon, the
parties whichever is earlier.
2) The court shall have the power to uphold, reverse or
modify the decsion of the Board.
3) The court shall give its decision within thirty days
from the date on which the appeal is submitted to itin accordance with Articell of this Article.
155. Offences against the permanet OTthe adhoc Board
1) Whosever in the course of a Board in-quiry, proceeding or hearing in any manner degrades,holds up to ridicule, threatens or disturbs the Board
or any of its member in the discharge of their duties,shall be punishable with simple imprisonment not
exceeding six months, or with fine not exceeding
Birr 1000 (Birr one thousand.)
2) Where the offence described in sub-article (1) of
this article is not committed openly or during open
hearing the punishment, except in more serious
cases, shall be a fine not exeeding Birr 500 (five
hundred Birr).
3) Proceedings of the Board shall be considered
“quasi-judicial proceedings” and the Board “a
competent judicial tribunal” for the purpose of
Article 442 of the Penal Code, and viloations
thereof shall be punishable as provided there under.
4) The Board may punish any person who committed
any ofence described in this Article.

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-No. 12 26111February 2004-Page 2496
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~~:: 156.
Annual Report
The permaneT or the adhoc Board shall submit to the
Minister an annual report of its activities.
Strike and Lock-out
1) Workers have the right to strike to protect their interest i’ the manner prescribed in this
2) Employers have the right to lock-out in the
manner prescribed in this Proclamation.
3) The provisions of Sub-Articles 1 and 2 of this
Article shall not apply to workers and employers
of undertakings referred to in Article 136 (2) of
this Proclamation.
158. Conditions to be fulfi1ed
Before initiating a strike or lock-out partially or wholly the following steps shall be taken: 1) Unless otherwise provided in this Proclamation,
the party initiating a strike or lock-out shall giveadvance notice to the other concerned party
indicating its reasons for taking the said action;
2) Both parties should make all efforts to solve and
settle their labour dispute through conciliation;
3) The strike to be taken by the workers should be
supported by a majority of the workers concerned
in a meeting in which at least 2/3rdof the members
of the trade union were present.
4) Measures should be taken to ensure the ob-
servance, by employers and workers, of safety
regulations and accident prevention procedures in
the undertaking.
159. Procedure for Notice
1) The notice under Article 158 (1) shall be given by the party initiating a strike or lock-out to the other
concerned party and to the representative of the
Ministry in the region or the concerned govern-
ment office.
2) The notice specified in Sub-Article (1) shall be
served 10 days in advance of taking action.
160. Prohibited Actions
1) Without Prejudice to the provision of Sub-Article (1) of Article 159, a strike or lock-out initiated
after a dispute has been referred to the Board or to
the court and 30 days have not elapsed before any
order or decision is given by the Board or the
prescribed period has elapsed before the court gives decisions is unlawful;
2) It shall be unlawful to refuse to obey, or to take or
continue to strike or to lock-out against or in
conflict with the final order or decision of the
Board or of the court disposing in whole or in partof labour dispute proceedings or to delay
unwarrantedly in obeying such Board or court
order or decisions; provided, however, that thestrike or lock-out initiated, which is not against or
in conflict with any such order or decision, but
seeks to compel compliances therewith, shall not
be deemed illegal or prohibited.
3) It is prohibited to accompany strike or lock-Dut
with violence, threats of physical force or with
any act which is clearly and officially unlawful.

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Federal Negarit Gazeta -No. 12 26thFebruary 2004-Page 2497
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ff,C;J {llJ11:” (IIJ”‘~ ~m.:” hf,lj 1.~9″11 CHAPTER SIX
161. Exemption from Fees
1) No court fees shall be charged in respect of cases submitted to conciliation and to the Labour
Relations Board by any workers or trade union, employer or employers associations in accordance
with Articles 141 and 147.
2) No court fees shall be charged in respect of cases
submitted by any worker or trade union to courts.
Period of Limitation and Priority of Claims CHAPTER ONE
Period of Limitation
162. Limitation
1) Unless a specific time limit is provided otherwise in this Proclamation or other relevant law, an actionarising from an employment relationship shall be
barred by limitation after one year from the date on which the claim becomes enforceable.
2) Any claim to be reinstated by a worker arising from
the unlawful termination of a contract of em-
ployment shall be barred after three months from
the date of the termination of the contract of
3) Claims by a worker for payment of wages, overtime
and other payments shall be barred after six months
from the date it become due.
4) Any claims by a worker or employer for any kind of
payment shall be barred by limitation unless anaction is brought within six months from the date of
termination of the contract of employment.
5) The relevant law shall be applicable to the period of
limitation which is ilot provided for in this
163. Calculation of Period of Limitation
1) Unless otherwise specifically provided for in this Proclamation, the period of limitation shall begin torun from the day following the day when the right
may be exercised. .
2) Whenever the last day of a period of limitation falls
on a day other than a working day, it shall expire onthe next working day.
164. Interruption of A Period of Limitation.
A Period of limitation shall be interrupted by
1) any action taken before an authority responsible for the determination of labour disputes until a final
decision is given.
2) any action taken before the competent authority
responsible for the enforcement and application of
this proclamation until a final decision is given inwriting.
3) the express recognition of the other party’s right
provided, however, that a period of limitationinterrupted on such ground may not be interrupted
for more than three times in the aggregate.
165. Waiver of Limitation
Any party may waive this right to raise as a defence a
period of limitation after its expiry, provided, however,
that, a waiver of such right made before the date of
expiry of the period of limitation shall have no effect.

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‘I’llTlD- 00-1~”fCj P’lrP'”f; 166.
Discretion of the Competent Authority
1) The authority responsible for the determination of labour disputes may accept an action after the
expiry of a period of limitation if it ascertains that
the delay is due to force majuere provided,
however, that unless the action is brought within
ten days from the date the force majuere cease to
exist, it shall not be accepted.
2) Without affecting the generality of the provisions
of Sub-Article (1) of this Article, the followingshall be good calise of disregarding a period of
limitation. (a) illness of the concerned worker;
(b) transfer of the worker upon order to a place
other than his residence;
(c) call of the concerned worker for national
Priority of Claims
167. Priority Over Other Debts
Any claim of payment of a worker arIsmg from
emrJloyment relationship shall have priority over other
payments or debts.
168. Procedure of Payment of Claims
1) In the event that the undertaking is liquidated, execution officers or other persons authorized by
law or the court to execute such liquidation shall
have the duty to pay the claims referred to in Article167 within thirty days following the decision of the.
competent authority.
2) Where the said claims are not met within the time
limit set forth in Sub-Article (1) of this Article due
to lack of funds, they shall be paid as soon as the
necessary funds are available.
169. Lien of HOme Workers
where the under taking is liquadaied or cease to operate
Home workers may exercise a lien on goods in their
possession that they have produced for a employer and such lien shall be of equal rank to their claims. Such
measure shall be deemed an action taken to enforce the
right provided for in Article 167. PART ELEVEN
Enforcement of Labour Law CHAPTER ONE
Labour Administration
170. Power of the Minister
1) The Minister may issue directives necessary for the implementation of this Proclamation. He may in
particular, issue directives on the following: (a) occupational safety, health and the protection
of working environment;
(b) standards of working conditions;
(c) classification of hazardous jobs;
(d) in consultation with the concerned organs,
type of works which are particularly arduous
or dangerous to the health and to the
reproductive systems of women workers;
(e) types of works which requires work permits
for foreigners and in general, the manner ofgiving work permits;
(f) employment of Ethiopian nationals outside of
(g) in consultation with the concerned organs,
types of occupations and works in whichapprenticeship need to be given;

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ool1hA ooC(I1 fePJ.OO’I’).:”1 ieD-..(‘..(-Cfoo”h;
r’ “”‘~eD-9″ lJ..(‘°7.eD- If! ‘h’i hit! O”,e. fll”’ JPt-
~.”1. “it~”1.eD-1 OOl.~ O”.,:”l.OOePJ.~it:”~
i llJ- OePJ.DJhieD- “I1A fOOOO1”IoOll (h) duration of apprenticeship;
(i) theoretical and practical aspects of appren-
ticeships as well as the manner of giving tests; .
U) procedure for the registration of job-seekers
and vacancies;
(k) procedure for the reduction of work force;
(1) undertakings required to have insurance
coverage for the payment of employmentinjury benefit.
2) The Minister shall organize, co-ordinate, follow-
up and execute the labour administration system
by establishing an Employment Service, a Labour
Inspection Service and also a permanent Advisory
Board which consists members from the Govern-
ment, employers associations and trade unions.
171. Advisory Board
The Advisory Board, is an organ established in
accordance with Sub-Article (2) of Article 170 which
shall study and examine matters concerning em-
ployment service, working conditions, the safety and
health of workers, the labour laws in general and give
advisory opinion to the Minister. Its duties and
responsibilities shall be determined in the directives to
be issued by the Minister.
Employment Service
172. Employment Service
. Employment services shall include the following;
1) assist persons who are able and willing to work to
obtain employment;
2) assist employer in the recruitment of suitable
workers for their works;
3) determine the manner in which foreign national
are employed in Ethiopia;
4) determine the. manner in which Ethiopian
nationals are employed outside of Ethiopia;
5) Co-operate with the concerned offices and or-
ganizations, in the preparation of training
6) undertake studies concerning the employed and
unemployed manpower of the country;
7) in collaboration with the concerned offices con-
duct studies relating to the manner of improvingvocational training at the national level and
distribute same to beneficiary and implement the
employment policy properly.
173. Employment Exchange
Employment Labour exchange shall include the
1) registration of job-seekers and vacancies;
2) selection from among the registered job-seekers
and sending those who fulfill the requirements to
compete for the positions notified by employers;
3) registration by the person assigned for this pur-
pose by the Minister, of job seekers who haveattained the age of 14 years and above upon
presenting the necessary documents.

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OJf.9″ oo”‘1/,!?,”f ll..,.h i- 0 IP 1r-.,.7f”fIll. ‘)’:’f-~
1.1’)’:’f- If. .,.~:’f-‘) flP/!1.Cll- oolf~Tm-‘)fOO4’>
fl}mC~ flP/l;J1’1′;
:E’ OtLtJ hfI}m/,! h1A.., fo:’f-,’h;J
ll.!h ~ m-‘) 11;Jm 9″m- .,.
f:t:’f- 9″h’)!:’f- f flmm-
m-“‘1~ :”fI}:’f-‘) f”7.!ith:’f-A tfLj
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hchC OJ”~hl1fo”f OJf.9″Olf:Cf: o.:’f- tlP/it
t.~9” “‘1{1.m-‘) ~C9″7f foom-flf::: 174.
Employment of Foreign Nationals
1) Any foreigner may only be employed in any type of
work in Ethiopia w1:lerehe possesses a work permitgiven to him by the Ministry.
2) A work permit shall be given for an employment in
a specific type of work for three years and shall be
renewed every year. However, the Ministry may vary the three years limit as required.
3) Where the Ministry ascertains that the foreigner is
not required for the work, the work permit may becancelled,
4) The Minister inaccordance with the law may
charge service charge for the issuance, renewal or
replacement of work permit.
175. Employment of Ethiopian Nationals Abroad
An Ethiopian national may be employed outside of
Ethiopia where the Ministry has obtained adequate
assurances that his rights and dignity shall be respected
in the country of employment.
176. Prohibition.
No person or entity shall perform employment ex-
change activities for consideration. SECTION TWO
Labour Inspection Service
177. Labour Inspection Service
Labour Inspection service shall include the following
1) ensure the implementation of the provisions of this
Proclamation, regulations and directives issued inaccordance with the Proclamation, other laws
relating to labour relations, registered collective agreement, and the decisions and orders given by
the authorities responsible to determine labour disputes;
2) supervise, executive, educate, study, make research
and prepare a standard of work to ensure the
implementation of the provisions issued in accor-
. dance with this Proclamation and other laws
regarding working conditions, occupational safety,
health and working environment;
3) prepare the list of occupational dieases and
schedules of degrees of disablement;
4) classify dangerous trades or undertakings;
5) conduct studies, and compile statistical data
relating to working conditions;
6) prepare training programmes concerning the
prevention of employment injuries;
7) supervise and ensure that where undertakings are
constructed, expanded, renovated or their applian-
ces installed, they are not dangerous to the safetyand health of workers;
8) take administrative measures in order to implement
this Proclamation and regulations and directivesissued in accordance with this Proclamation;
9) to seek in the courts or in the authorities responsible
for determining labour disputes appropriatemeasures for the enforcement of the provisions of
this Proclamation and of such sanctions as may be
required by its decision rendered in the course of its
lawful activities.

1K’ !(i”.?B~A
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-No. 12 26th February 2004-Page 2501
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lifitg. 180.
1) Where the employer is dissatisfied with the order given in accordance with Sub-Articles (1) and (2)
of Article 179, he may appeal to the authority
responsible to determine labour disputes court within five working days, provided, however that
there shall not be a stay of execution where the
order is given to avert an imminent danger pursuant
to Article 179 (2)(b).
2) The decision given on the appeal filed in accor-
dance with Sub-Article (1) of this Article shall be
final. Where the employer does not appeal withinthe time limit, the decision shall be executed by the
appellate court.
181. Restriction on the Functions of Labour Inspectors
1) The Labour Inspectors shall perform their func- tions diligently and impartially. They shall take intoaccount any reasonable suggestions given to them
by employers and workers.
2) No Labour Inspector shall at any time, whether
during or after he left his employment, reveal to any
other person any secrets of manufacturing, com-mercial or other working processes which may
come to his attention in the course of performing
his duties under this Proclamation.
3) No Labour Inspector shall reveal to any person
other than the concerned authority in the Ministry
the sources of any complaint brought to hisattention concerning a defect or breach of legal
provision and, in particular, he shall not make any
intimations to any employer or his representative
that his inspection visit was made in response to a
complaint filed with the Labour Inspection Service.
4) A Labour Inspector shall in all cases notify the
employer of his presence on the premises of theundertaking unless he considers that such
notification may be prejudicial to the efficient
performance of his duties.
5) No Inspector shall supervise any undertaking of
which he is an owner or in which he has an interest.
6) A Labour Inspector shall refrain from inteference
or involvement in labour disputes and collective
bargaining as a conciliator or an arbitrator.
182. Prohibition
The following acts shall be deemed to constitute
obstruction of the Labour Inspector in the performance
of his duties: 1) preventing the Labour Inspector from entering a
work place or from staying in the premises;
2) refusing to let the inspector examine records or
documents necessary for his functions;
3) concealing data relating to employment accidents
and the circumstance in which they occur.
4) any other act or omission that delays or interferes
with the exercise of the Labour Inspector’s function.

1~ l(if.:;fr 4..1.kA
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Negarit Gazeta
-No. 12 261hFebruary 2004-Page 2503
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fOt tj llD-fP’1r u-),:t’ +”‘lJ)lJ)~ ~lD-II PART
Penalty and Transitory Provisions
Penalty Provisions
183. General
Unless the provisions of the Penal Code provide more severe penalties, the penalties laid down in this Chapter
shall be applicable.
184. Offences by an Employer
1) An Employer who: (a) causes workers to work beyond the maximum
working hours set forth in this Proclamation or
contravenes in any manner the provision
relating to working hours;
(b) infringes the provisions of this Proclamation
regulating weekly rest days, public holidays,or leaves; or
(c) contravenes the provisions of Article 19 of this
Proclamation; shall be liable to a fine notexceeding Birr 500 (Birr five hundred)
2) An employer who:
(a) fails to fulfil the obligations laid down in
Article 12(4) of this Proclamation;
(b) Fails to keep records required by this
Proclamation, and provide type of infor-mation at a reasonable time to the Ministry inaccordance with this Proclamation.
(c) violates the provisions of Article 14 (1) ofthis
Proclamation; or
(d) terminates a contract of employment contrary
to Article 26(2) of this Proclamation;shall be liable to a fine not exceeding Birr
1200 (Birr one thousand and two hundreds).
185. Common Offences
an employer or a trade union which:
1) violates regulations and directives issued in accor-
dance with this Proclamation relating to the safety
of workers and commit and act which expose thelife and health of a worker to a serious danger or
does not give special protection to women workers and young workers’ as provided for in Labour
2) fails to bargain in accordance with Article 130(4) of
this Proclamation;
3) contravenes the provisions of Article 160 of this
4) does not comply with the order given by the Labour
Inspectors in accordance with this Proclamation orof the provision other laws;or
5) gives intentionally false information and ex-
planations to the competent authorities;shall be liable to fine not exceeding Birr 1200 (one
thousand and two hundred) or where the offence is
committed by a worker or the representative of the
employer, a fine not exceeding Birr 300 (three
186. Violations ofthe Provisions ofthis Proclamation
The Labour Inspector may submit cases involving offences committed in violation of the provisions of this
Proclamation or regulations and directives issued here-
under to the authorities competent to determine labour
disputes under Part Nine of this Proclamation.

‘ut Iif.~f!i U,.6-A ~:JtT ,’JtLlIJ 4I1’C!I “tt-tT x~ +’J Xitfji ‘H”.
Federal Negarit Gazeta
-No. 12 26thFebruary 2004-Page 2504
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“f c’oflJ; ‘)..,. 187.
Period of Limitation
No criminal proceedings of any kind referred to in this
Proclamation shall be instituted where one year has
elapsed from the date on which the offence was
committed. CHAPTER TWO
Transitory Provisions
188. Notwithstanding the provisions of Article 190 of this
Proclamation, and before entering into force of this
Proclamation; 1) directives issued in accordance with proclamation
No. 42/1993 shall remain enforce, in so far as theyare not inconsistent with this Proclamation.
2) collective agreements concluded in accordance
with Proclamation No. 42/1993 shall be deemed
concluded in accordance with this Proclamation
hence this Proclamation shall be applicable.
3) Trade unions and Employers Association es-
tablished inaccordance with prolcamation 42/1993shall be decemed established in accordance with
this proclamation.
4) Labour disputes pending before any authority
competent to settle labour dispute prior to the
coming into force of this proclamation shall besettled in accordance with the law and procedure
which were enforce before this proclamation came
into force.
189. Detennination of Degree of Disablement
Until the schedule determining the degree of
disablement is issued pursuant to Article 102 (1) of this
Proclamation the medical board shall continue its
functions as usual.
190. RepeaJedLaws
1) The Labour Proclamation No. 42/1993 (as amen- ded) is here by repled.
2. No laws, regulations, directives and decisions shall, in so far as it is inconsistent with this Proclamation,
have force and effect in respect of matters provided
for in this Proclamation.
191. Effective Date
This Proclamation shall enter into force on the date of its
publication in Federal Negarit Cazete.
Donate Addis Ababa this 26th day of February 2004 GIRMA WOLDE GIORGIS
o()cn’i l’1li” “‘-r-t.P ,(-C:fo}-