Core Facts

  • Population:  104M
  • GDP:  USD 62 billion
  • GDP per head:  USD 486
  • Unemployment (2017):  16.8%
  • Average monthly income (2017):  USD 136


Labour law in Ethiopia is governed by The Labour Proclamations.

For ”managers’, it is possible to choose the law of another country as the applicable law for the employment contract.  This is because The Labour Proclamations do not apply to ‘managers’.

Managers are employees of the enterprise who are “vested with powers to lay down and execute management policies by law or by delegation …. to an individual who is vested with the power to hire, transfer, suspend, layoff, assign or take disciplinary measures against employees…”.

In contrast, for ‘workers’,  the employment contract must be under Ethiopian law.

‘Workers’ are employees who are not ‘managers’. These are covered by The Labour Proclamations. Their status is defined by law and their conditions of employment are mandatorily prescribed. The employment contract cannot derogate from these.  Ethiopian courts refuse to apply the law of another jurisdiction.