UNITY 

UNIVERSITY
AREGA CAMPUS COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF HUMAN RESOURCE MANAGEMENT

GROUP ASSIGNMENT (25%)

Section: BG1R1N2A(Management)

Name: Kaleb Abebayhu

ID: UU00063R

Name: Nejat Molla

ID: UU00676R

Name: Rekib Azeher

ID: UU00686R

Name: Toti Negussie

ID: UUA00678R

Name: Zekarias Assefa

ID: UU00658R

Instructor Name: Melese A.

Submission Date:11/01/2022

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Table of Contents
Introduction: Historical background................................................................................................3
Constitutional framework................................................................................................................4
Collective Relation in Ethiopia........................................................................................................5
Labour Rights in the Constitution....................................................................................................5
The Evolution of Labour Law in Ethiopia.......................................................................................5
The New Labour Law......................................................................................................................6
Special Contracts of employment....................................................................................................7
Function of Federations and Confederations...................................................................................7
Probation..........................................................................................................................................7
Trade union structure under national law........................................................................................8
Registration and recognition of unions............................................................................................8
Collective Bargaining and Agreements...........................................................................................9
Scope of Applicability of the Agreement......................................................................................10
Labour Dispute..............................................................................................................................11
Collective Labour Disputes Procedures and Strikes......................................................................11
Labour Courts................................................................................................................................12
The Federal High Court.................................................................................................................13
Alternative Dispute Settlement Mechanism Pertaining to Labour Issues.....................................13
Conciliation, Arbitration and the Labour Relation Board.............................................................14
Tripartite Institutions and Participation – the National Advisory Board.......................................14
Composition of Permanent or Ad Hoc Board................................................................................14
Consideration of Matters...............................................................................................................15
Strikes in essential services...........................................................................................................16
Scheme of the strike procedure......................................................................................................17
Unlawful strikes and lockouts.......................................................................................................17
Notice of dismissal........................................................................................................................18
Exemption from Fees.....................................................................................................................18
Summary........................................................................................................................................19
Conclusion.....................................................................................................................................20
Reference:......................................................................................................................................21

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Introduction: Historical background 
Ethiopia is the oldest independent country in Africa. Unlike most other African countries, apart
from a brief Italian occupation (1936-1941) it was never occupied by a European power. 

Emperor Menelik II, who reigned from 1889 to 1913, is often considered as the founder of the
Ethiopian nation as it exists today. He successfully united what were previously several disparate
regions and peoples of the country. His successor Haile Selassie I continued this modernization.
He revised the Constitution and sought to bring Ethiopia closer to a European type of
government, introducing various welfare programs and outlawing slavery.

Ethiopia was invaded by Fascist Italy in late 1935 but was liberated in early 1941 by Haile
Selassie's troops with the help of the British Army. Following much political unrest (conflict
with Eritrea and severe famine). The constitution was suspended and the parliament was
dissolved. The monarchy was replaced by a Provisional Military Administrative Council called
The Dergue, which soon diverted from its announced socialist cause. The re-orientation of the
government and national economy from capitalism to Marxism led to the Mengistu's military
dictatorship. The transitional government of Meles Zenawi sought to stabilize and strengthen,
although certain human rights abuses continued (imprisonment of political opponents, journalists
and trade union leaders). 

Eritrea established its own provisional government in 1991 and became an independent nation in
1993. 

A new Ethiopian constitution drafted by an elected constituent assembly and approved in 1994,
set up a legislature and a judicial system, as well as it guaranteed equal rights and freedom of
expression to all Ethiopian citizens. Prime Minister Meles was re-elected to his post in October
2000 and a new president Lieutenant Girma Wolde-Giorgis was elected in October 2001. 
A border war between Ethiopia and Eritrea broke out in 1998 when Eritrean forces occupied
disputed territory. A cease-fire agreement was signed in June 2000 and a treaty was ratified in
December 2000.

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Constitutional framework
The constitution of the Federal Democratic Republic of Ethiopia (Proclamation No. 1/1995
hereinafter "the Constitution") was adopted on 8 December 1994 and came into effect in August
1995, creating the second republic, formally known as the Federal Democratic Republic of
Ethiopia (F.D.R.E.) Under this constitution, Ethiopia is a federation governed by two federal
assemblies: the legislature, known as the Council of Peoples' Representatives (CPR), and a
smaller, supervisory senate, the Federal Council (FC). First elections for fourteen newly created
regional assemblies were held in July 1992. The number of regions was subsequently reduced;
there are now nine autonomous regional state councils (municipal councils for Addis Ababa and
Dire Dawa). The regional boundaries redraw the previous provincial divisions through which the
highly centralized governments administered the country for much of the 20th century. The new
regions are distinguished primarily along linguistic lines, with five ethnic groups (Oromo,
Amhara, Tigrayan, Somali and Afar) having designated regional states. The boundaries of sub-
regional units, woreda, remain largely unaltered. 

The regional authorities have, in theory at least, wide-ranging economic powers. Since the
provisional legislation in 1992 the administrative framework for a unique brand of “ethnic
federalism” has been created. Ethiopia's federal constitution allows for the secession of
individual regions or linguistic groups, termed nationalities. 
The highest executive powers of the Federal Government are vested in the Prime Minister and in
the Council of Ministers (Chapter 8 of the Constitution). 

The Prime Minister is elected by the House of Peoples' Representatives from among the
members of this House. He or she is the chief executive, the chairperson of the Council of
Ministers and the Commander-in-Chief of the National Armed Forces. The Prime Minister
ensures the implementation of laws, policies, directives and other decisions adopted by the
House of People's Representatives or the Council of Ministers, as well as foreign policy. 
The term of office of the Prime Minister lasts for the duration of the mandate of the House of
People's Representatives. 

With the consent of the House, the Prime Minister has the power to dissolve the House of
People's Representatives before the expiry of its term, in order to hold new elections (Article 60).
In this case, the previous governing party or coalition continues as a caretaker government, with
limited powers. 

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Collective Relation in Ethiopia

Labour Rights in the Constitution 

The Constitution of Ethiopia contains a full chapter on fundamental rights and freedoms. The
fundamental rights have been grouped as “Human Rights” and “Democratic Rights”. The
Constitution guarantees rights and freedoms, equality before the law, equal protection under the
law, freedom of speech and expression, freedom of religion, belief and opinion, the right to
property. 

Among these fundamental rights, a whole range of general principles of labour rights are firmly
anchored in the constitution. The constitution provides for principles such as the right of the
security of the person Article 16, the prohibition against inhuman treatment and the abolishment
of slavery and servitude Article 18 (2) and forced and compulsory labour Article 18 (3) and (4).
General Freedom of Association is laid down in the Constitution Article 31, for any cause or
purpose and specified in Article 42, “Rights of Labour” which reads “Factory and service sector
employees, peasants, agricultural workers, other rural workers, government employees below a
certain level of responsibility and the nature of whose employment so requires, shall have the
right to form associations for the purpose of improving their economic and employment
conditions. This right shall include the right to form trade union and other associations, and to
negotiate with their employers and other organizations affecting their interests”.

The Evolution of Labour Law in Ethiopia 

Talking about Labour Law in Ethiopia means to basically review the history of the last 40-50
years. Present-day labour law, as a specialized law designed to protect employees' welfare only
came into existence because of the modern industrial development and with the rise of the status
of the employee as wage earner. Ethiopia's process of modernization and industrialization in
contrast with other African countries with a history of colonization continued slowly.
At the very beginning, the workers' movement in Ethiopia was rather corporative taking the form
of the traditional Ethiopian organizations such as “ekub” and “edir” local self-help societies that
provide services and mutual aid and protection of the interest of their members. One of the first
workers' organization with the pattern of a modern trade union was the “Franco-Ethiopian
Railway Company Workers' Association”, founded in 1947. But it was not before 1961 that the
first union was registered under the Civil Code (Civil Code Proclamation, No. 165/1960).

In 1963 the first formal labour law on collective labour relations was established with the
“Labour Relations Proclamation No. 210/1963”. This proclamation recognized the rights of
associations of employers and workers as well as a system of collective bargaining and it set up
machinery for the settlement of trade disputes the Labour Relation Board. Consecutively in
1963 the “Federation of Employers of Ethiopia” and in 1964 the “Confederation of
Ethiopian Labour Unions” were founded. 

However, individual labour relations were treated exclusively like any other service contract
according to the regulations of the Civil Code. 

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During the Dergue period as part of the socialist order of state and society, labour law was based
on the public ownership of the means of production and was subject to central planning and
central management. The Labour Proclamation No. 64 of 1975 superseded the imperial Labour
Relations Proclamation and contained almost all provisions of a socialist labour law. There was
no autonomy regarding the conclusion of collective agreements as a form of independent control
over working life exercised by freely constituted trade unions. There were no employers'
organizations and no contractual freedom between employer and employee.

Until recently, the main source of labour law, Proclamation No. 42/1993 was developed in the
post-socialist time marking the overcoming of the centralized state-economy towards a market
oriented pluralistic society.   

The New Labour Law 

Ethiopia was criticized for several years by the ILO Committee of Experts, which noted serious
discrepancies between the national legislation and the Freedom of Association and Protection of
the Right to Organize Convention, 1948 (No. 87). It was partly in response to the observations
made by the House of People's Representatives adopted Labour Proclamation No. 377/2003,
effective since 26 February 2004. This text repealed Labour Proclamation No. 42/1993. It has
become the principal source of labour law in Ethiopia. So far, the Committee of Experts has not
published its comments on the new law. 
The new statute represents an important tool for unions and employers to participate in all labour
matters. The innovation concerns the right of workers, without distinction whatsoever, to form
organizations of their own choosing and the right of these organizations to organize their
activities without interference by the public authorities and not to be dissolved by administrative
authority

Labour Proclamation 377/2003 amends the previous Labour Proclamation on the following
points: 

 It defines “managerial employees”

 It introduces an obligation of employers to maintain records
 It tightens the legal procedure by setting several new deadlines
 It introduces a clear ban for compulsory HIV/AIDS testing
 It strengthens the workers' position in case of termination
 It clarifies regulations on severance pay and compensation, disablement payment and
dependents benefits
 It creates the full guarantee of freedom of association by abolishing trade union
monopoly (Article 114), provided that the number of members of the union is not less
than ten

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Special Contracts of employment

The Labour Proclamation excludes certain special groups from the application of the
Proclamation, in particular: 

 contracts for the purpose of upbringing, treatment, care or rehabilitation

 contracts for the purpose of educating or training
 contracts relating to persons holding managerial posts who are directly engaged in major
managerial functions of an undertaking
 contracts of personal service for non-profit making purpose

Function of Federations and Confederations

In addition to those matters mentioned under Article115 of this Proclamation, federations and
confederations shall have the following functions:

 To strengthen the unity and spirit of co- operation among their members unions
 To participate in the determination or improvement of the conditions of work at the trade
or sectorial level
 To encourage members to enhance their participation in the development of the country’s
economy
 To represent their members in any forums
 To discharge other tasks as assigned to them in their bylaws.

Probation 

When concluding a contract of employment, the parties may agree on a probationary period for
the purpose of evaluating his or her suitability to the job. Such an agreement needs to be done in
writing and shall not exceed forty-five consecutive days (Article 11(3)). During this period, the
employee enjoys the same rights and obligations that the other workers have but termination is
possible without notice, if he or she fails to meet the requirements severance pays or
compensation is not to be paid. It shall be unlawful to an employers’ or workers’ organization to
unduly delay collective bargaining contrary to good faith.

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Trade union structure under national law 
The Constitution recognizes the right to freedom of association, the right to form and join a trade
union and the right to participate in trade union activities. 

Part 8, chapter 1 of the Ethiopian Labour Proclamation stipulates the right of both workers and
employers to form organizations of their own and to participate in them. 
Article 113 (2) lays down the trade union structure: There are trade unions (formed by workers),
employer's associations, federations (organization established by more than one trade unions or
employers' associations) and confederations (established by more than one trade union
federations or employer federation). 

The Proclamation foresees to form federations and confederations and the right to join
international organizations (Articles 114 (5) and (6)). 

Trade Unions and employers’ associations shall freely formulate their own by laws. The
constitutions may include, among other things, the following: Name of the Association, Address
of the Head Office of the association, Objective of the association, Date of establishment of the
association, Emblem of the association, Requirements for assumption of leadership positions of
the association, Union due so fits members, Financial and property administration of the
association, Meeting and election procedures of the association, Disciplinary procedures, The
conditions for dissolution the association, Status of the property in case of the dissolution of the
association.

Registration and recognition of unions 

The procedure for registration and de-registration are laid down in Part 8, chapter 1 of the
Labour proclamation. 
A union which is independent has a distinctive name, an address in Ethiopia and which has
adopted a constitution which meets these requirements, is allowed to make application for
registration. For The Labour proclamation sets out a list of topics to be included into any
constitution of a union or an employers' organization, such as name and emblem, address,
purpose of the organization, qualification of the leadership, contribution of the members,
financial and property administration, meetings and election procedures, disciplinary measures
and regulations for dissolving the organization. Unions and employer's organizations are obliged
to register; otherwise, they may not perform activities set forth in the proclamation and do not
have legal personality.   

The registration can be refused only on the grounds listed in Article 119. Subsection (4) lists a
leader's conviction within the last 10 years for a serious (not defined) non-political offence as a
ground for refusal to register the organization. 
The Proclamation allows a trade union or an employers' association to appeal the Ministry's
decision to refuse to register to the competent court. 

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Article 120 (1) requires the Ministry to apply to the competent court for permission to cancel a
registration: 

 where the certificate of registration is obtained by fraud or mistake or deceit 

 where any of the objectives or constitution of the organization is found to be illegal or 
 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 constitution. 
The consequence of cancellation of the registration is laid down in Article 123, namely that
the organization is dissolved from the date of the court's decision. 

Articles 5 and 6 of the ILO Freedom of Association and Protection of the Rights to Organize
Convention, 1948 (No. 87), are addressed in Article 114 (3), (4), (5) and (6) of the Proclamation,
permitting the establishment of federations and confederations by registered trade unions and
employers' associations. Subsection 8 allows individual employers to join established employers'
federations.

Collective Bargaining and Agreements 

The Ethiopian Labour Proclamation states that one of its central objectives is to promote
collective bargaining as a means of maintaining industrial peace and of working in the spirit of
harmony and cooperation towards the all-round development of the country. 
Details are regulated in Chapter 2 of the Labour Proclamation. Article 124 defines “collective
agreement” and “collective bargaining”. The first is “… an agreement concluded in writing
between one or more representatives of trade unions and one or more employers or agents or
representatives of employers organizations”, whereas the latter is defined as “negotiation made
between employers and workers organizations or their representatives concerning conditions of
work or collective agreements or the renewal and modifications of the collective agreement”.
Article 125 (1) grants the right to collective bargaining to trade unions on the one hand and to
employers or employers' organizations on the other hand. 

The fact collective bargaining takes place at the company level, even though the approach of the
Labour Proclamation is different and leaves the choice of the appropriate level of collective
bargaining to the parties and their judgment. According to Article 130 any party may request the
other party in writing. There are an estimated 450 collective agreements in Ethiopia, mostly
dealing with subject matters as benefits and increments (information given by the Ministry). 
The proclamation defines the question of representation on the trade unions and on the
employer's side (Art. 126). Any party may be assisted by advisors (Article 127). Articles 128
and 129 of the Labour Proclamation define the subject matter and the content of a collective
agreement, as “matters concerning the employment relationship and conditions of work as well
as relations of employers and their organizations with workers' organizations”. Upon signature of
any collective agreement, the parties shall send copies of it to the Ministry for registration
(Article 131).

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Collective agreements apply to all parties covered (Article 134(1)) and where their provisions are
more favorable to the workers than those provided by law (Article 134 (2)). The collective
agreement remains in force even after a trade union, which is party to the agreement is dissolved.
Under Article 133 (3), the duration of an agreement is fixed at three years unless expressly
stipulated otherwise.  

Scope of Applicability of the Agreement

Employees Covered by the Agreement

 This Collective Agreement shall be applicable to and binding upon all employees
of the Undertaking employed for indefinite period excluding 'Management
Employees' whose positions are listed in agreement and so defined under the
Proclamation.

 This Agreement shall be considered as an integral part of the employment contract

concluded individually and collectively between the Undertaking and those
employees specified under Sub-article (1) above who are employed by the
Undertaking for indefinite period.

What the law says about the rights of Trade Unions in Ethiopia:

Constitution and labor law provide for freedom of association and allow workers and
employers to join and form unions. This right is regulated by the labor Proclamation.
Trade union is a worker's organization that protects the rights and interests of the workers
and represents them in collective bargaining and labor dispute. Union must ensure that
laws, regulations, directives and statements are known to, be observed and implemented
by members. Union members should participate actively during preparation and
amendments of laws and regulations.

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Labour Dispute

Collective Labour Disputes Procedures and Strikes 

Collective labour dispute is a disagreement between an employer or an association or a
federation of employers and employees or an association or a federation of employees which
arises upon the entry into or the performance of collective agreements or the establishment of
new working conditions.

Lock-out means an industrial measure applied by employer through the closing of the place of
work with a view to persuading workers to accept certain labour conditions in connection with a
labour dispute or to influence the outcome of the dispute.

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
acting in 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 dispute.

The Constitution recognizes basic labour rights especially the right to strike, in its article 42. 

Under the previous law, the right to strike was expressly recognized but the pre-strike process
was long and made legal strike action difficult. 

Labour Proclamation No. 377, Chapter Five, covers strikes and lockouts but expressly excludes
“Essential public service undertakings” from this Chapter. Legal strike action continues to be
hard to achieve in practice. For example, pre-strike procedures include: the party initiating the
action to give advance notice to the other party – and to the Ministry - with reasons for the strike
or lock-out; both parties making all efforts to settle through conciliation; cooling-off period of 30
days after the notice; a pro-strike vote by a majority of workers concerned in a meeting in which
are present at least two-thirds of the members of the trade union; and maintenance of minimum
services for the respect of safety regulations and accident prevention in the undertaking
concerned (Article 158). 

This essential public service undertakings includes air transport services, electric power supply,
water supply and city cleaning and sanitation services, urban light rail transport service and
Hospitals, Clinics, dispensaries and pharmacies.

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Labour Courts

Labour divisions shall be established courts, at Federal and Regional level.

The Ministry or the appropriate authority shall submit proposals for the decision of the
appropriate authority on the number of labour divisions to be established in accordance with
Sub-Article (1) of this Article.

The labour division of a Federal and Regional First Instance Court shall have jurisdiction to
settle and determine the following and other similar individual labour disputes

 Disciplinary measures including dismissal

 Claims related to the termination of employment contracts
 Claims related to hours of work, remuneration, leaves and rest day
 Claims related to the issuance of certificate of service and clearance
 Claims pertaining to employment injury, transfer, promotion, training and other similar
issues
 Unless otherwise provided in this Proclamation, suits pertaining to violations provisions
of this Proclamation.

The labour division of a Regional First Instance Court shall render its decisions within 60 days
from the date on which the suit is filed.

The party who is aggrieved with the decision of the first instance court may, within 30 days from
the date on which the decision was delivered, lodge an appeal to the labour division of the
Federal or Regional appellate court.

The labour division of Appellate the Frist Instance Court shall have jurisdiction to hear and
decide on the following matters:

 Appeals submitted from the labour division of the first instance courts in accordance with
Article 139 of this Proclamation
 Objections on question of jurisdiction
 Appeals submitted against the refusal of the registration of an organization by the
Ministry or Appropriate Authority in accordance with Article 123 of this Proclamation
 Appeals submitted by an employer who is affected by the order of labour inspector in
accordance with Article 180(1) of this Proclamation
 Appeals submitted against the decision of the Minister or Appropriate authority in
accordance with Article 20 (3) Article of this Proclamation

The decision of the appellate court on appeal submitted under Sub-Article (1) of this Article shall
be final.

The labour division of the Federal or Regional Appellate Court shall render its decision within
60 days from the date of the appeal lodged in accordance to Sub-Article (1) of this Article.

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The Federal High Court 
Under Article 154 an aggrieved party may appeal the Board's decision   - on a point of law - to
the Federal High Court within 30 days of handing down the decision. On appeal the Federal
High Court has two options. On the one hand, it may affirm the decision of the Board in which
event the union may or may not proceed with the strike action depending on the decision. It
should be noted that Article 160 (2) prohibits strikes or lockouts from continuing if in conflict
with the final order of the Board, unless it is a protest action seeking to force compliance with an
order. On the other hand, if the Court is of the opinion that the Board erred on a question of law,
it may reverse or modify the decision. 

In its 2004 Report,3  when noting the draft amendments, the Committee of Experts of the ILO
explained that care should be taken to avoid establishing labour dispute settlement processes
that amount to compulsory arbitration at the instigation of only one party in the dispute. It states
that, except in situations concerning essential services in the strict sense of the term and acute
national crises, arbitration awards should be binding only where both parties have agreed to the
procedure. The Committee also recalled that arbitration procedures should not be excessively
long.

Alternative Dispute Settlement Mechanism Pertaining to Labour Issues

 Social Dialogue

Employers and workers or their respective associations may introduce social dialogue in order to
prevent and resolve labour disputes amicably.

 Assigning of Conciliator

When a dispute in respect of matters specified under Article 143 is brought to the attention of the
Ministry or the appropriate Authority by either of the parties to the dispute it shall assign a
conciliator with a view to amicable settlement of the case.

The Ministry or the Appropriate Authority may assign conciliators at the Federal, Regional and,
when necessary, at the Woreda levels.

 Duty and Responsibility of Conciliator

Conciliators are persons who act as an intermediate during the conciliation proceeding between
the disputants in their effort to resolve the dispute by compromise. It the proceeding is out of
court, in fact it is in most of the cases, the power, right and duties of conciliators are regulated by
Arts 3318 - 3324 of the civil code.

It is the inherent right of the disputant or parties to determine the identity and number of
conciliators whom they believe that he or she can protect their interest by bringing them together
and negotiating a settlement between them.

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Conciliation, Arbitration and the Labour Relation Board

The requirement of conciliation means that the dispute is either brought before a conciliator
assigned by the Ministry (Article 142 (3)), or before an arbitrator or conciliator agreed upon by
the parties (Article 143). If, in the first case, conciliation is not reached within 30 days, either
party may submit the matter to the Labour Relation Board which shall give its decision within 30
days. If, in the second case, the conciliation or arbitration fails, either party may move the
procedure further by taking the case to the Board or to the appropriate court. The Proclamation
does not provide a time limit for reaching an agreement in these cases. Nor is there a time limit
for submitting the matter to the Board, apart from the general provisions under section 162
concerning periods of limitation for lodging claims (one year from the date on which the claim
becomes enforceable, three months from the date of dismissal for reinstatement claims, and six
months for wages and emoluments claims). 

Tripartite Institutions and Participation – the National Advisory Board 

The Ethiopian Labour Proclamation gives Unions and Employers an important tool to
participation in all labour matters of concern. Article 170 (2) and 171 stipulate the Minister's
duty to establish a Labour Advisory Board. Pursuant to Article 170 (2), the Minister shall
organize, co-ordinate, follow-up and execute the labour administration system by establishing a
permanent Advisory Board which consists of members from the Ministry, employers’
associations, and trade unions. This Board is an organ “…which shall study and examine matters
concerning employment 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 Ministry” (Article 171). 

Since the establishment of the Labour Advisory Board, this institution has become an important
factor in the national decision-making process. It meets frequently (at least every month) and has
only recently adopted new regulations that allow the participation of other groups concerned, be
it other Ministries, or other civil society groups, active in a certain area of interest for the parties. 
The Labour Advisory Board also served as a forum to discuss the necessary amendments of the
previous Labour Proclamation and other reform projects.  

Composition of Permanent or Ad Hoc Board

A Permanent or Adhoc Board appointed by the Ministry or Appropriate Authority shall

comprises of a chairperson, two members who have the knowledge and skill on labour matters,
four members out of which two represent trade unions and two represent employers’
associations, and two alternate members one from each association.

Members and alternate members of the board shall be appointed for a term of three years;
provided, however, that in making the initial appointments, the terms of one, two and three years,
respectively, shall be specified so that in each subsequent year the terms of not more than one-
third of the members and alternate members then serving shall expire in anyone calendar year.

14
Meeting Procedures of Permanent or Ad Hoc Boards in the absence of the Chairperson another
member of the Board designated by him as acting Chairperson, shall preside over the meetings of
the Board. Where no such member is designated, the member of the Board who is senior in terms
of his service shall act as a Chairperson. If there is absence of a member at any meeting of the
Board, the Chairperson may designate an alternate member to replace the absentee at such
meeting. Alternate member so designated shall be deemed a member for the meeting for which
he is designated.

A Permanent Board shall have the following powers:

 to entertain collective labour disputes except those in sub-article (1) (a) of Article 143;
conciliate the parties; issue orders and render decisions.

  to entertain and decide cases submitted to it by one of the disputing parties after the
parties fail to reach an agreement in accordance with sub- article (3) of Article 143 of
this Proclamation except on matters specified in sub-article (1) (a) Article 143 of this
Proclamation

 to hear cases on prohibited actions referred to in Article 161 of this Proclamation

 to require any person or organization to submit information and documents required by it

for the carrying out of its duties

An Ad hoc Board shall have the power to entertain labour disputes on matters specified in sub-
article l (a) of Article 143 of this Proclamation, to conciliate the parties and to give orders and
decisions. Except in cases of urgency the person in charge of the premises or the undertaking
shall be given reasonable advance notice before any entry.

A Permanent or an Ad hoc board may adopt its own rules of evidence and procedure. In the
absence of own procedure, the provisions of the Civil Procedure Code shall apply.

Consideration of Matters

The permanent or the Ad Hoc Board shall exert all possible effort to settle the disputes before it
amicably, and to this end it shall employ and make use of all conciliatory means as it deems
appropriate.

The Board may, in appropriate circumstances, consider not only the interests of the parties before
it but also the interest of the community of which they belong and may in such circumstances
call up on the Government to intervene as an impartial advisor. In arriving at decision, the
Permanent or Ad Hoc Board shall take into account the main merit of the case and need not
follow strictly the principles of substantive law followed by Civil Courts.

A Permanent or An ad hoc Board shall give render a decision within 30 days from the date when
the claim is filed. Decisions of a Permanent or an Ad hoc Board shall be made in writing and
signed by the Board members who concur therein. Dissenting opinions, if any, shall also be

15
made in writing and signed by the dissenting member. Without prejudice to Article 155 of this
Proclamation, any decision of a Permanent or an Ad hoc Board shall have an immediate effect.

Whosever in the course of a board inquiry, proceeding or hearing in any manner disturbs
deliberations shall be punishable with simple imprisonment not exceeding six months or with
fine not exceeding Birr 1000. Where the offence described in sub-article (1) of this Article is not
committed openly or out of court session, the punishment, except in more serious cases, shall be
a fine not exceeding Birr 500.

A Permanent or an Adhoc board shall have the responsibility to submit to the Minister or
competent authority annual report of its activities.

Strikes in essential services 

Not all kinds of workers have the right to seek, initiate and conduct strike action. First there are
those who, as seen above, are excluded by section 3(a) of the Proclamation from its scope
generally.   Secondly, the Proclamation specifically excludes from Chapter Five one class of
workers, who consequently do not have the right to strike. These are workers who are engaged in
“essential public service undertakings”. These services are defined in section 136 (3) to include: 

 air transport 
 undertakings supplying electric power 
 undertakings supplying water and carrying out city cleaning and sanitation services 
 fire brigade services and 
 telecommunication services. 
This definition marks a great improvement over the longer list that had existed in the old law, but
still awaits full scrutiny by the ILO's supervisory bodies in the framework of the principles of the
right to strike. In its 2004 Report,4  when noting the draft amendments, the Committee of Experts
explained that air transport and urban bus services are not essential services in the strict sense of
the term and suggested that the Government give consideration to establishing a system of
minimum service in these undertakings, rather than impose an outright ban on strikes therein.
Numerically, the workers engaged in these essential services represent a sizable proportion of
trade union membership in the country. 

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Scheme of the strike procedure 
Summarized, the procedure in collective disputes is designed as follows: 

Either   Or

Voluntary conciliation/arbitration Conciliator assigned by the Ministry

 
(Art. 143) (Art. 141 (1))

↓   ↓

In case of failure, possibility to

Conciliation not reached within 30 days → parties submit
bring the case to the Board
matter to Labour Relation Board, established in Regional
(Arts. 144 (1), 145) or directly to →
Government. Decision with 30 days.
the court
(Arts. 142(3), 144(1), 145)
(Art. 143 (2))

↓   ↓

Appeal to the Federal High Court on questions of law only, within 30 days of decision of the
Board
(Arts. 153, 154(1))

In effect, lawful industrial actions are literally unknown in Ethiopia under these regulations. The
regulations of the previous Proclamation – in addition to the insufficient personnel structure of
the judiciary in general - lead to a situation, where labour disputes were often pending for
months and years. In praxis there has never been a legal strike since the Labour Proclamation,
No. 42 came into force in 1993. With the entry into force of Proclamation No. 377 which slightly
reduces the procedure, and fixes more time limits, the practice might, although doubtfully,
change. 

Unlawful strikes and lockouts 

Article 160 (1) prohibits a strike or lock-out initiated after a dispute has been referred to the
Board or to the court and the prescribed 30 days period for decision has not elapsed. It is also
unlawful to refuse to obey, or to start or continue to strike or to lock-out against the final order or
decision of the Board or the court. However, a strike or lock-out, which is not in conflict with
such decision, and which was initiated to seek compliance with this decision, is not unlawful
(Article 160 (2)). 
Pursuant to Article 160 (3), it is prohibited to use violence or threats of physical force together
with a strike or lock-out. 

In accordance with Article 185, violation of this procedure is an offence punishable with a fine
not exceeding Birr 1,200 (about 150 USD) if committed by a union of Birr 300 if committed by
an individual worker unless the provisions of the Penal Code prescribe more severe penalties in
which case the punishment laid down in the alternate becomes applicable. (In practice all illegal
strikes in the past 9 years were punished by imprisonment).  

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Notice of dismissal 
The limited grounds for termination without notice are defined in Article 27 (1) a) to k): 

 repeated and unjustified tardiness despite warning to that effect

 absence from work without good cause
 misappropriation of the property or fund of the employer
 returning output which, despite the potential of the worker, is persistently below the
quality stipulated 
 responsibility for brawls or quarrels at the workplace
 conviction for an offence where such conviction renders him or her unsuitable for the post
 responsibility for causing damage intentionally or through gross negligence 

The new text of the Labour proclamation adds that in these cases, the employer must give written
notice specifying the reasons for and the date of termination. 
Furthermore, the employer has 30 working days from the day he or she knows about the ground
for termination, to terminate the contract. 

The grounds for termination with notice fall in 2 different groups (Article 28). The first group
is composed of the grounds relating to the loss of capacity of the worker (Article 28 (1)). The
second group consists of the grounds of organizational or operational requirements of the
undertaking (Article 28 (2)), which constitute good cause for termination with notice. 

Exemption from Fees

No service fees shall be levied in respect of cases submitted to conciliation and to a Labour
Relations Board by any worker or Trade Union, employer, or Employers’ associations in
accordance with Articles 142 and 148 of this Proclamation.

Ethiopian law does not prescribe minimum wages through statute. Usually, wages are fixed by
the employer or by collective agreements or by the employee's contract of employment.   

Articles 53 and 54 of the Proclamation define “Wages” as the regular payment to which the
worker is entitled in return for the performance of the work that he performs under a contract of
employment. Overtime pays, allowances, bonuses, etc. are not considered as “wages”. The
Proclamation establishes the principle that wage is only paid for work done, except in cases,
when the source of the impossibility to work was in the sphere of the employer
Under Article 162 (2), claims for payment of wages, overtime and other payments shall be
barred after six months from the date they became due. In case of bankruptcy of the employer,
wages enjoy priority. If an insolvency proceeding has been opened over the employer's assets,
the employees' claims of wages are treated with priority over other payments or debts in

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accordance with Article 167 of the Labour Proclamation and Article 1025 of the Commercial
Code, Proclamation No. 166/1966.  

Summary

Collective labour relations was established with the “Labour Relations Proclamation No.
210/1963”. This proclamation recognized the rights of associations of employers and workers as
well as a system of collective bargaining and it set up machinery for the settlement of trade
disputes the Labour Relation Board. Consecutively in 1963 the “Federation of Employers of
Ethiopia” and in 1964 the “Confederation of Ethiopian Labour Unions” were founded. 
The registration can be refused only on the grounds listed in Article 119. Subsection (4) lists a
leader's conviction within the last 10 years for a serious (not defined) non-political offence as a
ground for refusal to register the organization. The Proclamation allows a trade union or an
employers' association to appeal the Ministry's decision to refuse to register to the competent
court. The consequence of cancellation of the registration is laid down in Article 123, namely
that the organization is dissolved from the date of the court's decision. 
 The Ethiopian Labour Proclamation states that one of its central objectives is to promote
collective bargaining as a means of maintaining industrial peace and of working in the spirit of
harmony and cooperation towards the all-round development of the country. 

Collective labour dispute is a disagreement between an employer or an association or a

federation of employers and employees or an association or a federation of employees which
arises upon the entry into or the performance of collective agreements or the establishment of
new working conditions.
The Ethiopian Labour Proclamation gives Unions and Employers an important tool to
participation in all labour matters of concern. Article 170 (2) and 171 stipulate the Minister's
duty to establish a Labour Advisory Board. Pursuant to Article 170 (2), the Minister shall
organize, co-ordinate, follow-up and execute the labour administration system by establishing a
permanent Advisory Board which consists of members from the Ministry, employers’
associations, and trade unions.
A Permanent or Adhoc Board appointed by the Ministry or Appropriate Authority shall
comprises of a chairperson, two members who have the knowledge and skill on labour matters,
four members out of which two represent trade unions and two represent employers’
associations, and two alternate members one from each association.
Not all kinds of workers have the right to seek, initiate and conduct strike action. First there are
those who, as seen above, are excluded by section 3(a) of the Proclamation from its scope
generally.   Secondly, the Proclamation specifically excludes from Chapter Five one class of
workers, who consequently do not have the right to strike. These are workers who are engaged in
“essential public service undertakings”.

No service fees shall be levied in respect of cases submitted to conciliation and to a Labour
Relations Board by any worker or Trade Union, employer, or Employers’ associations in
accordance with Articles 142 and 148 of this Proclamation.

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Conclusion

An effective and predictable scheme of settling labour disputes is an indispensable component of

an efficient legal system which promotes business peace through harmonious employer-
employee relations. Ethiopian labour law aims at creating such a system. The law classifies
labour disputes into individual and collective. However, lacks clarity in supplying the criteria for
such differentiation. This has practically caused unpredictability in the interpretation and
application of the Labour Proclamation with regard to differentiating individual and collective
labour disputes. The confusion emanating from vagueness in the Labour Proclamation is
somehow rectified by the precedents set by the Federal Supreme Court.

What makes a labour dispute a collective one rests on whether the disputed issue affects the
collective interests of workers and employers. All other cases shall always be individual
disputes. The number of applicants in a given case cannot be a determinant in this respect. Nor
can it be defined by a cursory look at instances of individual and collective labour disputes stated
in Articles 138 and 142 of the Labour Proclamation. The disputes set as an example of individual
labour disputes may qualify as collective disputes if the effects transcend beyond the applicant
and be a common concern for others as well. In a similar vein, what are referred to as collective
disputes may not be matters of collective concern. Accordingly, each case has to be evaluated on
its own merit. The existing confusion regarding such distinction is time consuming and a waste
of resources. Therefore, judges of courts of law and members of Labour Relations Boards have
to be well trained with respect to the distinction for a speedy settlement of labour disputes.

Alternative Dispute Resolution in Ethiopia is as old as memory can tell. The various ethnic
groups have used this method to settle family disputes, matrimonial conflicts, wars between
communities and many other problems. Complementary to the communal settlement of disputes
there existed and still exist other forms of conflict resolution through religious leaders, the courts
and modern ADR methods.

Individual labour disputes are more suitable to court room adjudication as they are based on the
rights of the parties which are laid down in relevant legislation or in the employment contract.
Federal and regional courts of first instance are mandated to settle out such disputes. On the
other hand, collective labour disputes are combinations of claims on rights and disputes on the
creation of new working conditions which are not yet legally or contractually binding on either
party. This makes such disputes inappropriate for primary adjudication by regular courts. In this
case, conciliation and arbitration are more effective mechanisms than adjudication.

The Labour Proclamation requires such cases first to be amicably settled by a conciliation officer
assigned by the parties to the dispute or the Ministry. When conciliation cannot be achieved, the
case will be referred to Labour Relations Boards as the case may be. The Boards are composed
of representatives of employers and employees and experts appointed by the Ministry and shall
have the final authority on matters of fact whereas questions of law are appealable to regular
courts.

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Reference:

 Civil Code of the Empire of Ethiopia (1960) Birhanena Selam, (Government) Printer
 Civil Procedure Code of Ethiopia (1960; 1965) Birhanena Selam, (Government) Printer,
1960
 Constitution of the Federal Democratic Republic of Ethiopia (1995)
 Tilahun Teshome, “An overview of the Right to Strike in Ethiopia”, Journal of Ethiopian
Law, Vol. XVI (1993), p. 216-238.
 Marco Guadagni, “Ethiopian Labour Law Handbook, Asmara, 1972.
 Vinod Agarval (2000) “Alternative Dispute Resolution Methods,” A paper presented at a
UNITAR sub regional workshop on Arbitration and Dispute Resolution (Harare,
Zimbabwe, 11-15 September)
 Adane Kebede, “Reading Material for the Course Employment Law”. (Not published,
available only in the Law Faculty of Mekele University for the Course “Employment
Law”).
 Federal Negarit gazette of the federal democratic republic of Ethiopia
Useful and relevant web links

 ILO conventions ratified by the Federal Democratic Republic of Ethiopia 

 The Parliament of the Federal Republic of Ethiopia 
 United Nations Mission in Ethiopia and Eritrea 
 EthiopiaDaily.com (Ethiopia news) 
 Addis Tribune 
 JURIST University of Pittsburgh School of Law 
There are no reference books available. As Labour Law is taught at Addis Ababa University and
at the Mekele University (Employment Law) some students' thesis are available in the libraries
of the respective law faculties.

Regions and countries covered: Africa, Ethiopia

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