Hire in Ethiopia

The probationary period must be clearly outlined in writing and cannot exceed 60 working days. Employees rehired for the same position within the same company are exempt from probation.

During the probationary period, if an employee is deemed unsuitable for the role, the employer may terminate the contract without prior notice or the requirement to offer severance pay or other compensation. Likewise, employees have the right to resign from their contract during this period, with or without providing a reason.

Normally, the standard work schedule comprises eight hours per day and 48 hours per week. Nevertheless, the duration of work may vary depending on the nature of the job, with some days featuring shorter hours and others requiring up to 10 hours of work per day.

Overtime refers to hours worked beyond the standard daily work period. Except in cases of accidents (actual or anticipated), force majeure, urgent tasks, or filling in for absent workers in continuous roles, employees cannot be compelled to work overtime.

The maximum allowable overtime is four hours per day or 12 hours per week. If employees exceed the regular working hours on weekdays, they are entitled to overtime premiums as follows:

• 150% of the normal hourly rate for overtime between 6 a.m. and 10 p.m.
• 175% of the normal hourly rate for overtime between 10 p.m. and 6 a.m.
• 200% of the normal hourly rate for work on a weekly rest day
• 250% of the normal hourly rate for work on a public holiday

Either party has the choice to terminate a contract by giving notice or by providing payment in lieu of notice. This action must adhere to legal provisions, any collective agreements, or agreements made mutually between both parties.

According to the Labor Proclamation, employment contracts can end under various circumstances, including the completion of a fixed-term contract or piecework arrangement, the passing away of the worker, the worker’s lawful retirement, the permanent closure of operations due to reasons like bankruptcy or other causes, or the worker’s incapacity due to disability.

Moreover, termination of the employment contract may also happen due to factors such as the worker’s conduct, their job performance, or the organizational and operational needs of the enterprise. The Labor Proclamation also outlines certain grounds for contract termination that don’t require prior notice.

For indefinite employment contracts, an employer may terminate by providing the following notice periods:

• One month for employees who have completed their probation and have served for up to one year.
• Two months for employees with service periods ranging from one to nine years.
• Three months for employees who have served for more than nine years.
• Two months for employees who have finished their probation but are terminated due to workforce reduction.

The duration of notice for fixed-term and piecework contracts is established through mutual agreement between the involved parties.

Upon successful completion of probation, the Labor Proclamation mandates that an employee becomes eligible for severance pay. The employer is obliged to provide severance pay to the employee under the following circumstances:

• Bankruptcy or other causes leading to the permanent closure of operations
• Termination violating legal provisions
• Workforce reduction
• Unlawful violation of the worker’s rights by the employer
• Failure by the employer to address workplace hazards despite notification
• Termination of contract due to partial or total disability
• The severance pay amount varies depending on the duration of employment and is disbursed at the following rates:
• 30 days’ wages for each year (including the first year) of service (severance pay for employees with less than one year of service is prorated accordingly)
• 10 days’ wages for each additional year of service following the first year (with a cap of 12 months’ wages for total severance pay)
• An additional 60 days’ wages for workers terminated due to redundancy, on top of the aforementioned payments

Additionally, besides the mentioned severance payment, employees are entitled to an extra 30 days’ worth of wages as compensation if their employment contract is terminated without notice.

Employers must uphold a payment record in a register, encompassing details such as gross pay, the methodology used for wage calculation, any additional variable remuneration, deductions made, net pay, and other pertinent information.

Upon completion of one year of service, employees are entitled to 16 working days of paid annual leave. Additionally, they accrue one working day for every two years of additional service.

Employees have the option to request their annual leave in two separate segments or postpone a period of leave with the employer’s approval. However, such deferment cannot extend beyond two consecutive years.

In the event that an employee’s contract terminates before they can utilize their entitled annual leave, they will receive compensation proportional to their length of service. Any agreement, whether it be a collective agreement or otherwise, that offers compensation in lieu of annual leave or waives the right to paid annual leave, is deemed invalid.

Sick leave is available to employees who are unable to work due to illness unrelated to a work-related injury. After completing their probationary period, employees are entitled to up to six months of paid sick leave. To avail themselves of sick leave, employees must notify their employer of their absence due to illness and provide a medical certificate from a government-recognized medical institution.

Employers are required to provide paid sick leave at the following rates:

• Full wages during the first month of sick leave.
• Half wages during the second and third months of sick leave.
• Unpaid leave from the fourth to the sixth month.

Maternity Leave

Female employees are entitled to 120 working days of fully paid maternity leave, comprising 30 days of antenatal leave and 90 days of postnatal leave, as recommended by a medical practitioner. Additionally, employees receive paid leave for medical examinations related to pregnancy and pregnancy-related medical advice from a doctor.

Paternity Leave

Male employees are entitled to three consecutive days of paternity leave with full pay.

An employee is eligible for three paid working days of “special leave” under the following circumstances:

• Marriage
• Bereavement of a spouse, descendant, ascendant, or relative up to the second degree

Additionally, employees have the option to take up to five consecutive days of unpaid leave for serious or exceptional personal matters.

Employees are entitled to full payment for festival holidays, whether they are public or religious in nature. These holidays encompass both memorial and religious occasions of Christian and Muslim origin. Generally, there are 13 public holidays annually.

If a public holiday aligns with a designated rest day or coincides with another public holiday, employees will only receive one payment for working on that day.