📌 Chapter Seven: Labour Law – Unit
Summary
7.1 Definition & Formation of Employment Contract
Employment governed by Labour Proclamation (Proc. 1156/2019).
Definition (Art. 4(1)): Agreement to perform work under employer’s authority for wage.
Key Elements:
o Free agreement (no forced labor).
o Direct (personal negotiation) or indirect (via agencies).
o Personal performance (cannot delegate).
o Work under employer’s instructions → distinguishes employee vs contractor.
o Duration: indefinite (default), definite only in special cases.
o Wage entitlement → employment is not voluntary service.
Contract must specify: type of work, place, wage, calculation, payment interval, duration.
7.2 Legal Regimes Governing Employment
Two regimes in Ethiopia:
o Labour Law (Proc. 1156/2019): Nationwide, sets minimum standards, allows
bargaining.
o Civil Servants Law (Proc. 1064/2017): Federal government institutions, rigid
rules, no bargaining.
Coverage:
o Profit-making gov’t enterprises (Ethio-telecom, Ethiopian Electric Power) →
Labour Law.
o Federal gov’t offices financed by budget → Civil Servants Law.
o Regional states → their own civil servant laws.
Key Difference: Labour law = flexible; Civil Service law = strict, maximum conditions.
7.3 Performance of Employment Contract
Employer’s obligations = Employee’s rights.
Employee’s obligations = Employer’s rights.
Law sets minimum standards; parties can add more in contract.
7.3.1 Obligations of Employer
Provide work (not just pay wages).
Supply necessary materials for work.
Pay wages & benefits.
Protect dignity & safety of workers.
Issue employment certificate upon termination/request.
Prohibit discrimination.
7.3.2 Obligations of Worker
Perform work specified in contract.
Appear fit & in normal condition.
Personally perform duties with diligence.
Aid in accidents.
Observe workplace rules.
Termination of Employment Contract
By Law: expiry, completion of work, death, retirement, incapacity, bankruptcy/closure.
By Agreement: mutual written consent, without loss of benefits.
By Employer:
o Conduct-related → without notice.
o Ability/organizational reasons → with notice.
By Worker:
o With notice → 30 days prior.
o Without notice → unsafe conditions, employer misconduct.
Consequences: depend on grounds; certificate of service always required